The Coefficient of Variation Is Useful in Evaluating the Total

question 7

True/False

The coefficient of variation is useful in evaluating the total risk in situations where assets have different total risk and expected returns.

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Definitions:

Corporation Form

The corporation form refers to a legal entity structure, recognized by law, where the business is distinct from its owners, providing limited liability and allowing for ownership through stock shares.

Business

An organization or entity engaged in commercial, industrial, or professional activities with the aim to generate profits.

Board of Directors

A group of elected or appointed members who collectively oversee the activities of a company or organization, ensuring it's managed in the best interest of the stakeholders.