The Coefficient of Variation of the Returns, Also Known as the Risk-To-Reward

question 23

Multiple Choice

The coefficient of variation of the returns, also known as the risk-to-reward ratio, is defined as:

• A) The standard deviation of returns divided by the mean return
• B) The variance of return multiplied by the mean return
• C) The variance of returns divided by the standard deviation of returns
• D) None of the above

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Definitions:

Employment-At-Will

A legal doctrine in some jurisdictions where employers can terminate employees at any time for any reason, except an illegal one, and employees can also leave their job without reason at any moment.

Doctrine

A set of beliefs or principles held and promoted by an organization, government, or movement.

Specific Employment Contract

A legal agreement detailing the specific terms and conditions of employment between an employer and an employee.

Outcome Fairness

The perceived fairness of the outcomes that individuals receive in an organizational context.