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Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.       Alternative 1...

Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.      

Alternative 1 Alternative 2 Alternative 3
Outcomes Probability Outcomes Probability Outcomes Probability
Failure 40 0.20 70 0.20 75 0.40
Acceptable 80 0.20 140 0.20 255 0.40
Successful 135 0.60 205 0.60 405 0.20


Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. (Do not round intermediate calculations. Round your answers to 3 decimal places.)

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Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

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