The coefficient of variation measures how risky an asset is per unit of return, and therefore...
The coefficient of variation measures how risky an asset is per unit of return, and therefore it can be used to help an investor choose between assets with different returns and different standard deviations (risk).
Group of answer choices
True
False
Homework Answers
True.
Coefficient of of variation helps in assessing how risky an investment is per unit of return and can be calculated as :-
Standard deviations on investment/ Expected return on investment
It calculates standardized risk per unit of return in simple terms and thus it can be used by investors in choosing investments with different risk and returns :)
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The coefficient of variation measures how risky an asset is per
unit of return, and therefore...
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