Week 3 Risk 1 - returns to the average of those returns....

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According to the article below, the coefficient of variation is a better tool to measure the relative risk of an investment because it allows the comparison of different investments. Coefficient of Variation = Standard Deviation/Average Return The standard deviation of investments is the quantitative statistical measure of the variation of
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Unformatted text preview: returns to the average of those returns. The greater the standard deviation, the higher the risk placed of the investment. The only way standard deviation can compare returns is if they have the same expected return. Source: http://thismatter.com/money/investments/single-asset-risk.htm...
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This note was uploaded on 03/26/2012 for the course F1515 F1515 taught by Professor Stan during the Spring '10 term at Keller Graduate School of Management.

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