Consider Fancy, Inc. stock. Based on the probability of economic outlooks, Fancy, Inc. stock is expected...

Consider Fancy, Inc. stock. Based on the probability of economic outlooks, Fancy, Inc. stock is expected to earn 10.79% in the upcoming year with a standard deviation of 8.77%. What is the coefficient of variation for Fancy, Inc for returns in the upcoming year? The correct formula is standard deviation divided by expected return. See Section 8-2D. Round your answer to the nearest two decimals.

Expert Solution

Coefficient of Variation = [Standard Deviation / Expected Return] * 100

= [8.77% / 10.79%] * 100 = 81.28

jeff jeffy answered 2 years ago

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