If we assume that asset X has an expected return of 10 and a variance of 10, then its coefficient of variation is:
A) 3.162
B) 1.000
C) 0.316
D) 1.316

Question

Quizplus · Accepted Answer

The coefficient of variation is the ratio of the standard deviation to the expected return. Therefore, the coefficient of variation for asset X is $\sqrt{10}/10$ = 0.316 (rounded to three decimal places).

If We Assume That Asset X Has an Expected Return