bmaggie

What is the coefficient of variation for a distribution with a mean of 10 and a variance of 4?

A) 40%.

B) 25%.

C) 20%.

bmaggie

What is the coefficient of variation for a distribution with a mean of 10 and a variance of 4?

A) 40%.

B) 25%.

C) 20%.

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Coefficient of variation, CV = standard deviation / mean. The standard deviation is the square root of the variance, or 4^? = 2. So, CV = 2 / 10 = 20%.

bmaggie

If the historical mean return on an investment is 2.0% and the standard deviation is 8.8%, what is the coefficient of variation (CV)?

A) 1.76.

B) 4.40.

C) 6.80.

bmaggie

If the historical mean return on an investment is 2.0% and the standard deviation is 8.8%, what is the coefficient of variation (CV)?

A) 1.76.

B) 4.40.

C) 6.80.

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The CV = the standard deviation of returns / mean return or 8.8% / 2.0% = 4.4.

zaestau

c

kison

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