The correct answer is B. 1.16%.
The coefficient of variation is a measure of the relative dispersion of a set of data points, expressed as the ratio of the standard deviation to the mean. It is a unitless measure, so it can be used to compare the variability of different sets of data with different units of measurement.
In this case, the standard deviation is 18% and the expected return is 15.5%. The coefficient of variation is therefore:
$CV = \frac{18\%}{15.5\%} = 1.16$
This means
that the standard deviation is 1.16 times the expected return. In other words, the returns are expected to vary by 1.16 times as much as the expected return.Option A is incorrect because it is the standard deviation, not the coefficient of variation.
Option C is incorrect because it is the expected return, not the coefficient of variation.
Option D is incorrect because it is a negative number, which is not possible for the coefficient of variation.