Fund A: x = 9.46%; s = 13.95%
Fund B: x = 8.88%; s = 12.56%

Compute the coefficient of variation (in percent) for Funds. (Round your answer to one decimal places.)
Fund A= 147.5%
Fund B= ???%

The coefficient of variation (CV) is a measure of relative variability that is calculated by dividing the standard deviation (\(s\)) by the mean (\(x\)) and then multiplying by 100 to express it as a percentage. The formula for the coefficient of variation is:

\[
\text{CV} = \left( \frac{s}{x} \right) \times 100
\]

Let's calculate the coefficient of variation for Fund B.

Given:
- Mean return for Fund B, \(x = 8.88\%\)
- Standard deviation for Fund B, \(s = 12.56\%\)

Substitute these values into the formula:

\[
\text{CV for Fund B} = \left( \frac{12.56}{8.88} \right) \times 100
\]

Now, let's compute this value.The coefficient of variation (CV) for Fund B is **141.4%**.

Would you like more details or have any questions? Here are some related topics:

1. What does the coefficient of variation indicate in finance?
2. How is the coefficient of variation used to compare investment risks?
3. What are other measures of risk in investment analysis?
4. How do mean and standard deviation affect the coefficient of variation?
5. What are some limitations of using the coefficient of variation?

**Tip:** The coefficient of variation is useful when comparing the risk of different investments with different mean returns.

Fund A: x = 9.46%; s = 13.95%
Fund B: x = 8.88%; s = 12.56%

Compute the coefficient of variation (in percent) for Funds. (Round your answer to one decimal place.)
Fund A = 147.5%
Fund B = ???%

Learn how to calculate the coefficient of variation (CV) for Fund A and Fund B, given the mean return and standard deviation. This problem is essential for understanding risk measurement in investment analysis. Fund A has a CV of 147.5%, and Fund B is calculated to have a CV of 141.4%. Suitable for finance students and professionals.

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