Which statement regarding coefficient of variation is NOT true?
A) is known as the trade-off between market risk and return.
B) is a common relative measure of risk vs. reward.
C) is the standard deviation divided by the average return.
D) A smaller coefficient of variation indicates a better risk-reward relationship.

Question

Quizplus · Accepted Answer

The coefficient of variation is a statistical measure of the dispersion of data points in a data series around the mean, and it is used to assess the risk-reward ratio, not specifically known as the trade-off between market risk and return.

Which Statement Regarding Coefficient of Variation Is NOT True