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If we assume that asset X has an expected return of 10 and a variance of 10, then its coefficient of variation is:

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JeanaShupp

Answer: Its coefficient of variation = 0.316

Step-by-step explanation:

The formula to find the coefficient of variations:

Coefficient of variation: [tex](\dfrac{\sqrt{\text{variance}}}{\text{return}})[/tex]

Given: Asset X has

Variance = 10

Expected return = 10

then, coefficient of variation [tex]=\dfrac{\sqrt{10}}{10}=\dfrac{1}{\sqrt{10}}\approx0.316[/tex]

Hence, its coefficient of variation = 0.316

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