Which Statement Regarding Coefficient of Variation Is NOT True

question 98

Multiple Choice

Which statement regarding coefficient of variation is NOT true?

• A) is known as the trade-off between market risk and return.
• B) is a common relative measure of risk vs. reward.
• C) is the standard deviation divided by the average return.
• D) A smaller coefficient of variation indicates a better risk-reward relationship.

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Definitions:

Win-Lose

A competitive situation or outcome in which one party's gain is exactly balanced by another's loss.

Motivational Theories

A set of theories in psychology that attempt to explain how people are motivated to achieve certain goals and how this motivation influences their behavior and performance.

Maslow

Refers to Abraham Maslow, an American psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

McGregor

Refers to Douglas McGregor, a social psychologist who proposed the X and Y theory, suggesting that there are two fundamental approaches to managing people.