In stock trading, the higher the coefficient of variation for the stock, the smaller the relative risk is for the return provided.

Question

Quizplus · Accepted Answer

The coefficient of variation measures the relative risk of return for a stock, with a higher coefficient indicating a higher level of risk. Therefore, the statement is false; the higher the coefficient of variation, the higher the relative risk is for the return provided.

In Stock Trading, the Higher the Coefficient of Variation for the Stock