Standard deviation is divided by expected rate of return is used to calculate_________?
Correct answer: A. Coefficient of variation
- A. Coefficient of variation
- B. Coefficient of deviation
- C. Coefficient of standard
- D. Coefficient of return
Explanation
The coefficient of variation is calculated as standard deviation divided by expected rate of return. It shows the amount of risk undertaken for each unit of expected return.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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