PRC-2 · Chapter 8 · Question 38 of 60
An investment portfolio yields an average annual return of 12% with a standard deviation of 3%. What is the portfolio's Coefficient of Variation (CV)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) 25%
Explanation
The Coefficient of Variation (CV) measures relative dispersion and is calculated as (Standard Deviation / Mean) * 100. Here, (3 / 12) * 100 = 0.25 * 100 = 25%.
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