Ask Question
18 October, 06:16

Cheng Inc. is considering a capital budgeting project that has an expected return of 24% and a standard deviation of 30%. What is the project's coefficient of variation? Do not round your intermediate calculations. Round the final answer to 2 decimal places.

+5
Answers (1)
  1. 18 October, 08:08
    0
    The correct answer is 1,25.

    Explanation:

    The Coefficient of variation (CV) is a measure of the relative dispersion of a set of data, which is obtained by dividing the standard deviation of the set by its arithmetic mean and is usually expressed in percentage terms.

    In this case the standard deviation is divided over the expected return, and we have to:

    30/24 = 1.25
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Cheng Inc. is considering a capital budgeting project that has an expected return of 24% and a standard deviation of 30%. What is the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers