Levine Inc

question 131

Multiple Choice

Levine Inc. is considering an investment that has an expected return of 15% and a standard deviation of 10%. What is the investment's coefficient of variation?

• A) 0.67
• B) 0.73
• C) 0.81
• D) 0.89
• E) 0.98

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Definitions:

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, representing excess return over opportunity costs.

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.

Assets

Items of value owned by individuals, companies, or governments, including tangible items like real estate and equipment, and intangible items like patents and trademarks.

Explicit Cost

Direct, out-of-pocket payments for goods or services that a company incurs in the course of doing business.