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Investment a Has an Expected Value of 5 and a Standard

Question 8

Multiple Choice

Investment A has an expected value of 5 and a standard deviation of 2. Investment B has an expected value of 10 and a standard deviation of 5. Using the coefficient of variation approach to comparing these two investments,


A) Investment A would be selected because it has the larger coefficient of variation.
B) Investment B would be selected because it has the larger coefficient of variation.
C) Investment A would be selected because it has the smaller coefficient of variation.
D) Investment B would be selected because it has the smaller coefficient of variation.

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