Erickson Inc

question 43

Multiple Choice

Erickson 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:

Federally Insured

Federally Insured refers to financial deposits or products protected by a federal agency, such as the FDIC, against loss up to a certain limit.

Drawee

The party, often a bank, that is directed to pay a certain amount of money to the person presenting the check or draft as stated on the financial document.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories, and meeting other short-term liabilities.

Draft

A preliminary version of a document or plan that is subject to revisions and edits before the final version is completed.