Cheng IncIs Considering a Capital Budgeting Project That Has an Expected

question 98

Multiple Choice

Cheng Inc.is considering a capital budgeting project that has an expected return of 25% and a standard deviation of 30%.What is the project's coefficient of variation?

• A)1.20
• B)1.26
• C)1.32
• D)1.39
• E)1.46

---

Definitions:

Increase

A rise in quantity, size, value, or extent.

Percent

A proportion or share in a whole, expressed as a fraction of 100.

Percentage Less

The reduced amount expressed as a fraction of a hundred.

Sales

The exchange of goods or services for money, constituting the primary source of revenue for most businesses.