If the coefficient of variation is zero, then ____.
A)the security has no risk
B)the security has a zero expected return
C)the security is very risky
D)the security's standard deviation is much larger than the security's expected return

Question

Quizplus · Accepted Answer

The coefficient of variation measures the risk per unit of return, and a coefficient of variation of zero means that the standard deviation is zero relative to the expected return. This implies that the security has no risk.

If the Coefficient of Variation Is Zero, Then ____