The variability of a company's operating income can be measured by calculating:
A) the standard deviation of operating income.
B) the coefficient of variation of net income.
C) the correlation coefficient between operating income and sales.
D) the beta of the company.

Question

Quizplus · Accepted Answer

The standard deviation of operating income is a measure of variability, indicating how much the operating income fluctuates around its mean over a period of time.

The Variability of a Company's Operating Income Can Be Measured