QUESTIONS 19 THROUGH 32 RELATE TO QUANTITATIVE METHODS

25. An analyst gathered the following information about a common stock portfolio:

Arithmetic mean return 14.3%

Geometric mean return 12.7%

Variance of returns 380

Portfolio beta 1.35

If the risk-free rate of return is 4.25 percent, then the coefficient of variation is

closest to:

A. 0.52.

B. 1.36.

C. 1.53.