Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship.

Std Dev. Exp. Return
Company A 10.4 15.2
Company B 14.6 22.9

The coefficient of variation (CV) is a measure of risk that takes into account the standard deviation and expected return of an investment. It allows us to compare the risk/reward relationship of different investments.

To calculate the coefficient of variation, we can use the following formula:

CV = (Standard Deviation / Expected Return) * 100

Let's calculate the coefficient of variation for both companies:

For Company A:
CV(A) = (10.4 / 15.2) * 100 = 68.4

For Company B:
CV(B) = (14.6 / 22.9) * 100 = 63.8

Now, let's compare the coefficients of variation for both companies. The lower the coefficient of variation, the better the risk/reward relationship.

In this case, Company B has a lower coefficient of variation (63.8) compared to Company A (68.4). Therefore, based on the risk/reward relationship, Company B seems to be the better investment option.

It is important to note that the coefficient of variation should not be the sole factor in making investment decisions. Other factors such as the investment duration, market conditions, and individual risk tolerance should also be considered.