The Variance of the Returns of Stock X Is 62

question 56

Multiple Choice

The variance of the returns of Stock X is 62.5%, and the expected return from the stock is 18%. Calculate the coefficient of variation of the stock. (Round your answer to two decimal places.)

• A) 3.47
• B) 0.44
• C) 0.29
• D) 2.27
• E) 1.82

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Definitions:

Reserve Requirement

A regulation set by central banks that determines the minimum amount of reserves a bank must hold against deposits, influencing the bank's capacity to lend.

Total Factor Productivity

A measure of the efficiency of all inputs to a production process, reflecting the output produced per unit of input.

Human Development Index

An index measuring key dimensions of human development: life expectancy, education, and per capita income.

Gini Coefficient

A measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).