Question

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

Answer 1

Answer:

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.