The Coefficient of Variation, Calculated as the Standard Deviation of Expected

question 59

True/False

The coefficient of variation, calculated as the standard deviation of expected returns divided by the expected return, is a standardized measure of the risk per unit of expected return.

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Definitions:

Exponentiation

A mathematical operation involving raising a base number to the power of an exponent, signifying repeated multiplication of the base.

Division

A mathematical operation where one number, the dividend, is divided by another number, the divisor, to produce a quotient.

Exponentiation

A mathematical operation involving the raising of a number to the power of another number.

Division

A mathematical operation where one quantity is divided by another, yielding a quotient or result.