American_Bankers_Association
CTFA · Question #43
The investment proposal with the greatest relative risk would have:
The correct answer is B. The highest coefficient of variation of net present value. See the full explanation below for the reasoning.
Investment Management
Question
The investment proposal with the greatest relative risk would have:
Options
- AThe highest standard deviation of net present value
- BThe highest coefficient of variation of net present value
- CThe highest expected value of net present value
- DThe lowest opportunity loss likelihood
How the community answered
(46 responses)- A2% (1)
- B85% (39)
- C4% (2)
- D9% (4)
Topics
#coefficient of variation#risk measurement#net present value#relative risk
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