This is a measure of risk to reward earned by an investment over a specific period of time.
A) coefficient of variation
B) market deviation
C) standard deviation
D) total variation

Question

Quizplus · Accepted Answer

The coefficient of variation is a measure of risk to reward because it compares the standard deviation of an investment's returns to its expected return. This ratio helps investors evaluate the amount of risk they are taking on in relation to the potential reward they could receive. The other options (B, C, D) all refer to measures of variability or dispersion but do not specifically compare risk and reward.

This Is a Measure of Risk to Reward Earned by an Investment