For a potential investment of $5,000, a portfolio has an EMV of $1,000 and a standard deviation of $100. What is the coefficient of variation?
A) 10%
B) 20%
C) 100%
D) 50%

Question

Quizplus · Accepted Answer

The coefficient of variation is a measure of the relative variability of a probability distribution. It is calculated by dividing the standard deviation by the mean. In this case, the coefficient of variation is $100/$1,000 = 10%.

For a Potential Investment of $5,000, a Portfolio Has an EMV