Lower the coefficient of variation, the greater the risk and therefore the higher the expected return.

Name: Lower the coefficient of variation, the greater the risk and therefore the higher the expected return.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The coefficient of variation measures the risk-adjusted return, and a lower value indicates lower risk. Therefore, the statement is false. A higher coefficient of variation indicates higher risk and therefore, higher expected return.

Lower the Coefficient of Variation, the Greater the Risk and Therefore