Use the below payoff table with four mortgage options to answer the following question(s).
-Which of the following formulas is used to calculate the coefficient of variation?
A)variance/mean
B)mean/variance
C)standard deviation/mean
D)mean/standard deviation

Question

Use the below payoff table with four mortgage options to answer the following question(s). 
-Which of the following formulas is used to calculate the coefficient of variation?
A)variance/mean 
B)mean/variance 
C)standard deviation/mean 
D)mean/standard deviation

Quizplus · Accepted Answer

The coefficient of variation is calculated as the standard deviation divided by the mean, which is represented by option C.

Use the Below Payoff Table with Four Mortgage Options to Answer