The primary difference(s)between the standard deviation and the coefficient of variation as measures of risk are:

Question

Quizplus · Accepted Answer

The primary difference between the standard deviation and the coefficient of variation as measures of risk is that the coefficient of variation is a measure of relative risk, while the standard deviation is a measure of absolute risk. The coefficient of variation is calculated as the standard deviation divided by the mean, and it is useful for comparing the risk of investment opportunities with different means or scales. On the other hand, the standard deviation is an absolute measure of the dispersion of a set of data around its mean. Thus, C is the best choice as it correctly describes the difference between the two measures.

The Primary Difference(s)between the Standard Deviation and the Coefficient of Variation