233k views
0 votes
Cheng inc. is considering a capital budgeting project that has an expected return of 40% and a standard deviation of 30%. what is the project's coefficient of variation?

User Jasdeep
by
7.6k points

1 Answer

5 votes
Coefficient of variation is the ratio of the standard deviation to the mean (average)

Coefficient of variation = (standard deviation/mean) × 100

CV= (30)/(40)×
100 =
75

User Bithin Alangot
by
8.1k points