Absolute and Relative Risk. Ken Parker must decide which of two securities is best for him. By using probability estimates, he computed the following statistics: Statistic                Security X...

Absolute and Relative Risk. Ken Parker must decide which of two securities is best for him. By using probability estimates, he computed the following statistics:

Statistic                Security X            Security Y

Expected return (r) 12%                8%

Standard deviation (s) 20%        10%

(a) Compute the coefficient of variation for each security, and (b) explain why the standard deviation and coefficient of variation give different rankings of risk. Which method is superior and why?