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Metal Manufacturing has isolated four alternatives for meeting its need for increased production capacity. The following table summarizes data gathered relative to each of these alternatives.

Alternative Expected return Standard deviation of return

A 20% 7.0%

B 22 9.5

C 19 6.0

D 16 5.5

a) find out the coefficient of variation for each alternative

b) If the firm wishes to minimize risk , which alternative do you recommend? why?

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