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Space Software is considering an investment in new software that detects malw...

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Space Software is considering an investment in new software that detects

malware threats in the financial industry. Two possible types of expansion are

under review. After investigating the possible outcomes, the company made the

estimates shown in the following table. The pessimistic and optimistic outcomes

occur with a probability of 20% and 25%, respectively, and the most likely

outcome occurs with a probability of 55%.

 

Project S

Project D

Annual returns

Pessimistic

12%

8%

Most likely

18%

20%

Optimistic

25%

40%

 

You are required to calculate the coefficient of variation for these two

projects.

0%
100%
0%
0%
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