The lower the coefficient of variation, the greater the risk and therefore the higher the expected return.

Name: The lower the coefficient of variation, the greater the risk and therefore the higher the expected return.
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Quizplus · Accepted Answer

The coefficient of variation measures the risk-adjusted return, so a lower coefficient of variation indicates lower risk and therefore lower expected return. A higher coefficient of variation indicates higher risk and potentially higher expected returns.

The Lower the Coefficient of Variation, the Greater the Risk