Variation coefficient mostly considered better risk measure
What is the reason that variation coefficient mostly considered a better risk measure while comparing different projects than the standard deviation?
Expert
a) Every time we wish to evaluate the risk of investments having different means, we make use of the coefficient of variation (CV). b) The CV corresponds to the percentage of mean’s standard deviation. Since the CV is a ratio, it alters according to differences in means, whereas the standard deviation does not. As a result the CV offers a standardized measure of the risk degree that can be utilized to evaluate alternatives.
Are there some legal factors that might limit a corporation in its effort to pay cash dividends to common stockholders?
Who said, merger doesn’t create more risk?
What will happen when a bank gives discount interest on a loan?
Explain the correlation between financial quantities.
Why is traditional, simple VaR measurement not coherent?
Suppose spot Swiss franc is $0.7000 and the six-month forward rate is $0.6950. Estimate the minimum price which a six-month American put option along with a striking price of $0.6800 must sell for in a rational market? Suppose the annualized six-month Eurodo
What are different volatilities in vanilla equity option?
When you add random numbers and get normal, what occurs when you multiply them?
Explain reward versus risk.
You need to price a European, non-path-dependent contract upon a basket of equities. Which numerical method should you use?
18,76,764
1955680 Asked
3,689
Active Tutors
1418409
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!