7. Five investment alternatives have the following returns and standard deviations of
returns:
Returns: Standard
Alternative
Expected Value Deviation
A.
$ 5,000
$1,200
B.
4,000
600
C.
4,000
800
D.
8,000
3,200
E.
10,000
900
Using the coefficient of variation, rank the five alternatives from the lowest risk to
the highest risk.