The coefficient of variation divides the variance of the returns of an asset by the expected rate of return of that asset.

Name: The coefficient of variation divides the variance of the returns of an asset by the expected rate of return of that asset.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

The coefficient of variation divides the standard deviation of the returns of an asset by the mean (average) return of that asset, not the variance by the expected rate of return.

The Coefficient of Variation Divides the Variance of the Returns