-Which of the Four Investments Has the Highest Coefficient of }

question 27

Multiple Choice

$\begin{array}{|l|c|c|}\hline \text { Asset } & \begin{array}{c}\text { Expected return } \\(\mathrm{E}(\mathrm{R}) \boldsymbol{) }\end{array} & \begin{array}{c}\text { Standard deviation } \\\text { (ธ) }\end{array} \\\hline \mathrm{A} & 10 \% & 9 \% \\\hline \mathrm{B} & 12 \% & 8 \% \\\hline \mathrm{C} & 15 \% & 12 \% \\\hline \mathrm{D} & 13 \% & 11 \% \\\hline\end{array}$
-Which of the four investments has the highest coefficient of variation?

• A) \(\text { Asset } A\)
• B) \(\text { Asset } B\)
• C) \(\text { Asset } C\)
• D) \(\text { Asset } D\)

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Definitions:

Allocative Efficiency

An allocation scenario where it's not feasible to enhance one person's well-being without negatively impacting another's.

Scarce Resources

Limited natural, human, and capital resources that cannot satisfy all wants and needs.

Consumer Preferences

Describes the subjective tastes and preferences of individual consumers, influencing their purchasing decisions.

Marginal Benefit

The additional satisfaction or value a consumer gains from consuming one more unit of a good or service.