The Coefficient of Variation Gives You a Measure Risk Per

question 4

True/False

The coefficient of variation gives you a measure risk per unit of return.All else equal investors would prefer a higher coefficient of variation.

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Definitions:

Causal Relationship

A connection between two variables where a change in one variable (the cause) leads to a change in another variable (the effect).

Standard Error

A statistical measure that describes the accuracy with which a sample distribution represents a population using the standard deviation.

Regression Line

A straight line that best fits the data on a scatter plot, indicating the average relationship between the independent and dependent variables.

Coefficient Of Determination

A statistical measure, often denoted as R-squared, that represents the proportion of the variance in the dependent variable that is predictable from the independent variables, indicating the strength of the relationship.