SCENARIO 20-4
A stock portfolio has the following returns under the market conditions listed below.

-Referring to Scenario 20-4,what is the coefficient of variation?
A)88.8%
B)90.3%
C)100%
D)156.1%

Question

SCENARIO 20-4
A stock portfolio has the following returns under the market conditions listed below.

-Referring to Scenario 20-4,what is the coefficient of variation?
A)88.8% 
B)90.3% 
C)100% 
D)156.1%

Quizplus · Accepted Answer

The coefficient of variation is a measure of relative variability. It is calculated by dividing the standard deviation by the mean. In this case, the standard deviation is 14 and the mean is 9. Therefore, the coefficient of variation is 14/9 = 1.561, or 156.1%.

SCENARIO 20-4 A Stock Portfolio Has the Following Returns Under the Market