Answer:
a. 1.20
Step-by-step explanation:
Given that Erickson Inc. is considering a capital budgeting project that has an expected return of 25% and a standard deviation of 30%.
i.e. given that
[tex]\mu = 25%\\\sigma = 30%[/tex]
Coefficient of variation = [tex]\frac{\sigma}{\bar x}[/tex]
substituting the values we get
Coefficient of variation =[tex]\frac{30}{25} \\=1.20[/tex]
Out of the four options given we find only one option a is the correct answer.