Difference between revisions of "Coefficient of variation"
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| − | + | [[Coefficient of variation]] (also known by its acronym, [[CV]]) is the coefficient that is equal to the standard deviation divided by the expected return; it is a standardized risk measure that allows comparisons between investments having different expected returns and standard deviations. | |
==Definitions== | ==Definitions== | ||
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
| − | : | + | :[[Coefficient of variation]] (''CV''). Equal to the standard deviation divided by the expected return; it is a standardized risk measure that allows comparisons between investments having different expected returns and standard deviations. |
==Related concepts== | ==Related concepts== | ||
Revision as of 07:36, 30 October 2019
Coefficient of variation (also known by its acronym, CV) is the coefficient that is equal to the standard deviation divided by the expected return; it is a standardized risk measure that allows comparisons between investments having different expected returns and standard deviations.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Coefficient of variation (CV). Equal to the standard deviation divided by the expected return; it is a standardized risk measure that allows comparisons between investments having different expected returns and standard deviations.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
