McLeod Inc

question 7

Multiple Choice

McLeod 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

---

Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, often used in calculating the cost of inventory or the average cost of capital.

Unit Cost

The cost incurred to produce, purchase, or acquire a single unit of a product or service.

FIFO Costing

An inventory valuation method where the costs of the earliest goods purchased are the first to be recognized in determining cost of goods sold.

Gross Profit

The difference between sales revenue and the cost of goods sold (COGS), indicating the profitability of a company's core business activities.