In: Finance
investment | expected return | risk | Coefficient of variation (CoV) |
A | 12% | 7% | ____? |
B | 18% | 12% | ____? |
a. After finding the Coefficient of Variation for both investments use the results to recommend one Investment over the next.. Explain your recommendation and define the term co-efficient of variation as you applied it here.
b. Now, using the risk and return principle what would be your recommendation now? Remember to define the "Risk and Return" principle as applied to this situation.