In: Finance
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 | 60 | .20 | 70 | .20 | 80 | .20 | ||||||||||||||
Acceptable | 60 | .40 | 220 | .40 | 250 | .60 | ||||||||||||||
Successful | 130 | .40 | 240 | .40 | 415 | .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.)