54 676
Assignments Done
98,2%
Successfully Done
In November 2017
Your physics homework can be a real challenge, and the due date can be really close — feel free to use our assistance and get the desired result.
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Our experts will gladly share their knowledge and help you with programming homework. Keep up with the world’s newest programming trends.

Answer on Finance Question for Dan

Question #43870
Under what circumstances will the coefficient of variation of a security’s returns and the standard deviation of that security’s returns give the same relative measure of risk when compared with the risk of another security?
Expert's answer
Standard deviation, as applied to investment returns, is a quantitative statistical measure of the variation of specific returns to the average of those returns. The coefficient of variation is a better measure of risk, quantifying the dispersion of an asset’s returns in relation to the expected return, and, thus, the relative risk of the investment. Hence, the coefficient of variation allows
the comparison of different investments.

The coefficient of variation and the standard deviation of a security's return will give the same relative measure of risk when compared to the risk of another security when both securities have the same level of expected returns.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question