1. Why is the coefficient of variation a better measure than the standard deviation measure when evaluating stand-alone risk in situations in which different investments have substantially different expected returns?
2. You have saved $6546 for a down payment on a new car. The monthly payment you can afford is $441. You will make payments for 48 months (starting 1 month from today). If the relevant interest rate is 0.89% per month (this is an Effective Monthly Rate), the price of the car you can afford (taking into account the down payment as well) is $_______________.
Do not round any intermediate work. Round your final answer to 2 decimal places.