You have estimated the following probability distributions


You have estimated the following probability distributions and returns of two stocks:

                            Probability         Stock A            Stock B

                                  0.3                  12%                  5%  

                                  0.4                    8                     4

                                  0.3                    6                     3

You have also calculated standard deviation of Stock A and B as 2.38% and 0.77%, respectively.  What is the coefficient of variation (CV) for the stock that is less risky assuming you use the CV to rank riskiness?

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Financial Management: You have estimated the following probability distributions
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