Answered

Find the best answers to your questions at Westonci.ca, where experts and enthusiasts provide accurate, reliable information. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

An asset has an average return of 5 percent and a standard deviation of 10 percent. Which of the following statements is true?
a. its variance is 25,
b. its coefficient of variation is 2.0
c. if returns are normally distributed, 95 percent of the time its returns will fall between -5 percent and 15 percent
d. if returns are normally distributed, 99 percent of the time its returns will fall between -15 percent and 25 percent.

Sagot :

Parrain

Answer: b. its coefficient of variation is 2.0

Explanation:

The Coefficient of Variation, given the above data, is calculated by the formula:

= Standard Deviation/ Mean

= 10% / 5%

= 2.0

Option B is therefore correct.

Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.