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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Definitions:

Joint Tenants

A form of property co-ownership where two or more parties hold equal shares, and upon the death of one, the surviving joint tenant(s) automatically receive the deceased's share.

Heirs

Individuals legally entitled to receive property from a deceased person's estate under a will or through intestacy.

Beneficiaries

Individuals or entities entitled to receive benefits or funds under a will, trust, insurance policy, or other financial arrangement.

Constructive Eviction

A situation in which a landlord's actions, or failure to act, substantially interfere with a tenant's enjoyment of the leased property, effectively forcing them to move out.