An investor is considering two investments. Stock A has a mean annual return of 16 percent and a standard deviation of 14 percent. Stock B has a mean annual return of 20 percent and a standard deviation of 30 percent. Calculate the coefficient of variation (CV) of each stock. Which of the following statements is TRUE?

A.Stock A (CV = 0.875) has more dispersion relative to the mean than stock B. B.Stock A (CV = 0.875) has less dispersion relative to the mean than stock B. C.Stock A (CV 1.14) has more dispersion relative to the mean than stock B. D.Stock A (CV 1.14) has less dispersion relative to the mean than stock B.

时间:2024-04-04 09:15:45

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