Which of the Following Is Correct Regarding the Coefficient of Variation

question 76

Multiple Choice

Which of the following is correct regarding the coefficient of variation?

• A)It measures the amount of standard deviation for each one percent of covariance.
• B)It measures the amount of return achieved for each one percent of risk taken.
• C)It measures the amount of risk taken for each one percent of return achieved.
• D)None of these statements are correct.

---

Definitions:

Capital Flow

The movement of money for the purpose of investment, trade, or business production across international borders.

Industry's Short-run

A period in which at least one of a firm's inputs is fixed, limiting the firm's ability to adjust to changes in market demand.

General Equilibrium

A state in which all parts of the economy (supply, demand, prices) are in balance and all markets are at equilibrium.

Market Equilibrium

A situation in which market supply and demand balance each other, and as a result, prices become stable.