The Primary Difference(s)between the Standard Deviation and the Coefficient of Variation

question 6

Multiple Choice

The primary difference(s) between the standard deviation and the coefficient of variation as measures of risk are:

• 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
• E) c and d

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Definitions:

Input Demand Curves

Graphical representations that show the quantity of inputs a firm demands at different input prices.

Rent

Payment, typically made monthly, for the use of land, a building, an apartment, an office, or other property.

Potential Users

Individuals or entities that could use or benefit from a product or service but have not yet done so.

Optimal Combination

The best mix of different factors or elements (such as resources or inputs) to achieve a desired outcome or objective.