Which of the following (if any) is a relative (rather than absolute) measure of risk?
A)standard deviation
B)standard normal probability distribution
C)expected value
D)coefficient of variation

Question

Quizplus · Accepted Answer

The coefficient of variation is a relative measure of risk because it measures the standard deviation relative to the expected value. This allows for comparison of risk between investments with different levels of expected return. Standard deviation and expected value are absolute measures of risk, as they do not take into account the level of return. The standard normal probability distribution is a mathematical concept used to describe the distribution of random variables, but is not a measure of risk in and of itself.

Which of the Following (If Any) Is a Relative (Rather