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Erickson Inc. is considering a capital budgeting project that has an expected return of 25% and a standard deviation of 30%. What is the project's coefficient of variation

Respuesta :

Answer:

The project's coefficient of variation is 1.2

Explanation:

Coefficient of variation is the measure of variability relative to the mean.

Coefficient of variation = Standard Deviation / Average Return

Coefficient of variation = 0.30 / 0.25

Coefficient of variation = 1.2

Therefore, coefficient of variation is 1.2

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