The coefficient of variation is useful in evaluating the total risk in situations where assets have different total risk and expected returns.

Question

Quizplus · Accepted Answer

The coefficient of variation is useful in evaluating the relative risk of different assets by comparing their standard deviation to their expected return. It is particularly useful in situations where assets have different total risk and expected returns, as it allows for a more accurate comparison of risk-adjusted returns. Therefore, the statement is true.

The Coefficient of Variation Is Useful in Evaluating the Total