# Coefficient Of Variation In Risk And Return Increased potential returns on investment usually go hand in hand with increased risk. It is calculated by dividing the standard deviation of an investment by its expected rate of return. The Goal Of Six Sigma Is To Improve Your Processes Like How To Fix Variation And Produc Business Management Degree Business Management Industrial Engineering

### Coefficient of variation coefficient of variation is a measure used to assess the total risk per unit of return of an investment. Coefficient of variation in risk and return. In finance the coefficient of variation allows investors to. Based on the. The coefficient of variation cov is the ratio of the standard deviation of a data set to the expected mean.

Risk and return in investing risk and return are highly correlated. Risk and return coefficient of variation. Coefficient of variation is a statistical tool to analyze risk per unit of return of an investment.

Cv 10 4 15 2 0 68421 company b. In finance the coefficient of variation is important in investment selection. From a financial perspective the financial metric represents the risk to reward.

Since most investors are risk averse they want to minimize their risk per unit of return. Coefficient of variation cv company a. Investors use it to determine whether the expected return of the investment is worth.

Cv 14 6 22 9 0 63755. The coefficient of variation cv is a statistical measure of the relative dispersion of data points in a data series around the mean. The standard deviation of returns from an investment option is to be divided by the mean annual return of that option to arrive at the coefficient of variation.

Company a s cv is higher than company b s cv so company a has the best investment. Chapter 8 Risk And Rates Of Return Ppt Video Online Download Coefficient Of Variation Formula Calculation With Excel Template Interest Compound Interest Growth Calculated By Rate Frequency Interesting Things Intrest Rate Compound Interest Contrast The Three Primary Categories Of Cash Flows Provided In The Statement Of Cash Flows Cash Flow Income Statement This Or That Questions Coefficient Of Determination Formula Calculation With Excel Template Coefficient Of Variation Definition Formula And Example