Matthew would like to invest in gold and is aware that the returns on such an investment can be quite volatile. Use the following table of states, probabilities, and returns to determine the coefficient of variation for the investment. (Round answer to 5 decimal places, e.g. 0.07680.) Probability Return Boom 0.1 40% Good 0.2 17% Ok 0.3 13% Level 0.2 5% Slump 0.2 -20%

Matthew would like to invest in gold and is aware that the returns on such an investment can be quite volatile. Use the following table of states, probabilities, and returns to determine the coefficient of variation for the investment. (Round answer to 5 decimal places, e.g. 0.07680.) Probability Return Boom 0.1 40% Good 0.2 17% Ok 0.3 13% Level 0.2 5% Slump 0.2 -20%

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter25: Portfolio Theory And Asset Pricing Models

Section: Chapter Questions

Problem 1MC

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Boom	0.1	40%
Good	0.2	17%
Ok	0.3	13%
Level	0.2	5%
Slump	0.2	-20%

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