The coefficient of variation of the returns,also known as the risk-to-reward ratio,is defined as:

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The coefficient of variation is calculated as the standard deviation of returns divided by the mean return. This ratio gives an indication of how much risk is involved in achieving a certain level of return. A higher coefficient of variation suggests a higher risk-to-reward ratio, while a lower coefficient of variation implies lower risk for the same level of return. Therefore, option A is the correct choice. Option B (variance of return multiplied by the mean return) and option C (variance of returns divided by the standard deviation of returns) do not accurately represent the risk-to-reward ratio.

The Coefficient of Variation of the Returns,also Known as the Risk-To-Reward