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28 April, 11:58

1. The coefficient of variation is a better measure of stand-alone risk than standard deviation because it is

A. Correlation coefficient

B. Risk premium

C. standard deviation

2. Standardized measure of risk per unit; it is calculated as the Select correlation coefficient risk premium standard deviationdivided by the expected return. The coefficient of variation shows the risk per unit of return, so it provides a more.

A. identical

B. correlated

C. Different

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Answers (1)
  1. 28 April, 12:05
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    The answers are: 1) Letter C and 2) Letter A

    Explanation:

    C. standard deviation: The coefficient of variation is a better measure of stand-alone risk than standard deviation because it is standard deviation

    A. identical: Standardized measure of risk per unit; it is calculated as the Select correlation coefficient risk premium standard deviationdivided 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 identical.
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