Examining coefficient of variation


Kyle's Shoe Stores, Inc., is considering opening an additional suburban outlet. An aftertax expected cash flow of $100 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values.

Site A:Probability/Cash flows (.2/50, 3/100, 3/110, .2/135)

Site B:Probability/Cash flows (.1/20, .2/50, .4/100, .2/150, .1/180)

Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round your answers to 4 decimal places.)

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Finance Basics: Examining coefficient of variation
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