Cheng inc. is considering a capital budgeting project that has an expected return of 40% and a standard deviation of 30%. what i

Question

Nataliya [291]

3 years ago

8

Cheng inc. is considering a capital budgeting project that has an expected return of 40% and a standard deviation of 30%. what i

s the project's coefficient of variation?

Mathematics

1 answer:

Radda [10] · Answer 1 · 2022-04-13T02:59:57+03:00

Radda [10]3 years ago

5 0

Coefficient of variation is the ratio of the standard deviation to the mean (average)

Coefficient of variation = (standard deviation/mean) × 100
$CV= \frac{30}{40}$ × $100$ = $75$