The ____________ the coefficient of variation, the ____________ the risk.
A) lower, lower
B) higher, lower
C) lower, higher
D) more stable, higher

Question

Quizplus · Accepted Answer

The coefficient of variation is a measure of relative variability. It represents the ratio of the standard deviation to the mean. A lower coefficient of variation indicates that the data points are closer to the mean, suggesting less volatility or risk. Conversely, a higher coefficient of variation indicates more dispersion from the mean, suggesting higher risk. Therefore, the correct statement is "the lower the coefficient of variation, the lower the risk."

The ____________ the Coefficient of Variation, the ____________ the Risk

The the Coefficient of Variation, the the Risk