The correct answer is D. None of the above.
The coefficient of variation is a measure of the relative variability of a set of data. It is calculated by dividing the standard deviation by the mean. A high coefficient of variation indicates that the data is spread out over a large range, while a low coefficient of variation indicates that the data is clustered closely around the mean.
In this case, the coefficient of variation is 1.5%. This means that the standard deviation is 1.5% of the mean. This is a very low coefficient of variation, indicating that the data is very tightly clustered around the mean.
The expected rate of return is the average return that an investor can expect to earn on an investment. It is calculated by taking the sum of the possible returns and dividing it by the number of possible returns.
In this case, the expected rate of return cannot be determined because the coefficient of variation is too low. The low coefficient of variation indicates that the data is very tightly clustered around the mean, but the mean itself is unknown. Therefore, it is not possible to calculate the expected rate of return.
The following are the possible answers and their explanations:
- A. 27.00%: This is the standard deviation multiplied by 100. However, the standard deviation is only 18%, so this answer is too high.
- B. 12.00%: This is the mean divided by 100. However, the mean is unknown, so this answer is also too high.
- C. 19.50%: This is the coefficient of variation multiplied by 100. However, the coefficient of variation is only 1.5%, so this answer is also too high.
- D. None of the above: This is the correct answer because the expected rate of return cannot be determined.