Coefficient of variation is a better risk calculator
Elaborate the statement: Coefficient of variation is a better risk calculator to use than the standard deviation when estimating the risk of capital budgeting projects.
Expert
a) The variation coefficient is a better risk calculator than the standard deviation because the CV varies according to the size of the project. CV calculates the standard deviation divided by the mean and hence puts the standard deviation into the situation.
b) For instance, a standard deviation of .05 could be considered big relative to a mean of .02 but it would be considered a small value compared to a mean value of 8.
You take a taxi by the train station to the conference place. The taxi number is 20,922. How many taxis are there in the city?
Explain financial markets and why do they exist?
How is Sortino Ratio Work?
Describe Euro-medium-term-note market Normal 0
Normal 0 false false
State the term Calibration in financial model?
Explain the concept of the risk–return relationship.
Explain the poisson processes.
The United States contain experienced continuous present account deficits since the early 1980s. What do you think are the foremost reason for the deficits? What would be the consequences of continuous U.S. present account deficits?The present a
18,76,764
1945439 Asked
3,689
Active Tutors
1449786
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!