Q787
Coefficient of variation is used to identify an effect of
A.
risk
B.
return
C.
deviation
D.
Both A and B
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Coefficient of variation is used to identify an effect of risk and return. The coefficient of variation (CV) is a statistical measure of the dispersion of data points in a data series around the mean. In finance, the coefficient of variation allows investors to determine how much volatility, or risk, is assumed in comparison to the amount of return expected from investments.