Illustrative Case 22-3 Suppose The Ff. Projections Are Available For Three Alternative Investments in Equity Shares (Stock)
Illustrative Case 22-3 Suppose The Ff. Projections Are Available For Three Alternative Investments in Equity Shares (Stock)
Required:
= 4.3%
= 4.3%
Coefficient of Variation (CV)- the standardized measure of the risk
per unit of return; calculated as the standardized deviation divided by
the expected return.
Generally:
The ff. table shows the extent of risk reduction through diversification
when there are different degrees of correlation between Project E and
Project F.