Two Investments Have the Following Expected Returns (Net Present Values)and $\underline{\text{ Coefficient of Variation, }}$

question 6

Multiple Choice

Two investments have the following expected returns (net present values) and standard deviations:
Based on the $\underline{\text{ Coefficient of Variation, }}$ where the C.V.is the standard deviation dividend by the expected value.

• A)All coefficients of variation are always the same.
• B)Project Q is riskier than Project X
• C)Project X is riskier than Project Q
• D)Both projects have the same relative risk profile
• E)There is not enough information to find the coefficient of variation.

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