Which of the following statements correctly explains the coefficient of variation (CV)?

Mathematics

1 answer:

Vitek1552 [10]3 years ago

3 0

Answer:

A. The CV is a relative measure of risk/return.

Step-by-step explanation:

The coefficient of variation of any investment, is used to measure and calculate the total risk of that investment with respect to its per unit expected return rate.

We can also define the coefficient of variation as a ratio of standard deviation to the expected value of an investment.

The answer is - A. The CV is a relative measure of risk/return.

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