Which of the following values of the coefficients of variation of stocks represents the least risky stock?
A) 1.0
B) 0.005
C) 0.5
D) 0.045

Question

Quizplus · Accepted Answer

The coefficient of variation (CV) is calculated by dividing the standard deviation of a dataset by its mean. Therefore, a smaller CV indicates that the dataset has a smaller standard deviation relative to its mean, making it less risky. Among the given choices, option B has the smallest CV of 0.005, indicating the least risky stock.

Which of the Following Values of the Coefficients of Variation