The Variance of the Returns of Stock X Is 62

question 36

Multiple Choice

The variance of the returns of Stock X is 62.5 percent, and the expected return from the stock is 18 percent. Calculate the coefficient of variation of the stock. 

• A)3.47
• B)0.44
• C)40.98
• D)0.29
• E)1.86

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Definitions:

Compounded Quarterly

A method where interest is added to the principal every three months which allows interest to be earned on the previously accumulated interest.

Scholarships

Financial support awarded to students based on academic or other achievements to help fund their education.

Trust Fund

A fund comprised of a variety of assets intended to provide benefits to an individual or organization, managed by a trustee.

Compounded Annually

Refers to the process of calculating interest on an investment or loan once per year, adding it to the principal amount.