In stock trading, the higher the coefficient of variation for the stock, the smaller the relative risk is for the return provided.

Name: In stock trading, the higher the coefficient of variation for the stock, the smaller the relative risk is for the return provided.
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Question

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The coefficient of variation measures the relative variability of a stock's returns in relation to its mean return. A higher coefficient of variation indicates a higher level of risk per unit of return, not smaller.

In Stock Trading, the Higher the Coefficient of Variation for the Stock