The Primary Difference Between the Standard Deviation and the Coefficient

question 41

Multiple Choice

The primary difference between the standard deviation and the coefficient of variation as measures of risk is:

• A)the coefficient of variation is easier to compute.
• B)the standard deviation is a measure of relative risk whereas the coefficient of variation is a measure of absolute risk.
• C)the coefficient of variation is a measure of relative risk whereas the standard deviation is a measure of absolute risk.
• D)the standard deviation is rarely used in practice whereas the coefficient of variation is widely used.