Which of the Following Is True Regarding the Coefficient of Variation

question 48

Multiple Choice

Which of the following is true regarding the coefficient of variation (CV) ?

• A)All other measures being equivalent,the optimal strategy is to choose the action or option with the highest CV.
• B)The CV gives an absolute measure of variability among the options.
• C)The return-to-risk ratio (RTRR)is a function of the CV.
• D)In choosing between the CV and the RTRR,the better strategy is to choose the CV.

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Definitions:

Principle of Opposites

The concept that states opposing forces or tendencies are inherent in the human psyche and are necessary for balance and psychological development.

Conflicts

Internal or external struggles resulting from opposing needs, desires, or demands.

Polarities

Dualities or opposing forces that create tension and dynamics within various contexts, such as personality, politics, or physics.

Perceiving

The process of becoming aware of or understanding sensations and information through the senses.