Using the coefficient of variation instead of the standard deviation accounts for the:
A) timing of payoffs.
B) risk attendance of managers.
C) riskiness of different projects.
D) size of different projects.
E) use of a weighted average of different profits.

Question

Quizplus · Accepted Answer

The coefficient of variation standardizes the standard deviation by dividing it by the mean, allowing for comparison of risk relative to the size of different projects.

Using the Coefficient of Variation Instead of the Standard Deviation