Answer:
Coefficient of variation = 0.67
Explanation:
Coefficient of variation:
The coefficient of variation (CV) is the ratio of the standard deviation to the mean.
Formula:
Coefficient of variation = Standard deviation / expected return
McLeod Inc. is considering an investment that has an expected return of 15% and a standard deviation of 10%.
Therefore by putting the values in the above formula, we get
Coefficient of variation = 10% / 15%
Coefficient of variation = 0.10 / 0.15
Coefficient of variation = 0.67
