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The coefficient of variation is a better measure of stand-alone risk than standard deviation because it is a standardized measure of risk per unit; it
The coefficient of variation is a better measure of stand-alone risk than standard deviation because it is a standardized measure of risk per unit; it is calculated as the divided by the expected return. The coefficient of variation shows the risk per unit of return, so it provides a more meaningful risk measure when the expected returns on two alternatives are not Quantitative Problem: You are given the following probability distribution for CHC Enterprises: What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places. % What is the stock's standard deviation? Do not round intermediate calculations. Round your answer to two decimal places. % What is the stock's coefficient of variation? Round your answer to two decimal places. Do not round intermediate calculations
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