Two alternative expected returns are compared with help of__________?

Correct answer: D. Coefficient of variation

  • A. Coefficient of return
  • B. Coefficient of deviation
  • C. Coefficient of standard
  • D. Coefficient of variation

Explanation

The coefficient of variation compares risk relative to expected return, making it useful when evaluating alternative investments with different expected returns. It is calculated as standard deviation divided by expected return.

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