Coefficient of Variation (C.O.V.) Calculator
Coefficient of Variation (C.O.V.) values
If The Standard Deviation of the Asset equals 10% and The Expected Return of the Asset equals 10%, the Coefficient of Variation (C.O.V.) equlas 1
If The Standard Deviation of the Asset equals 10% and The Expected Return of the Asset equals 20%, the Coefficient of Variation (C.O.V.) equlas 0.5
If The Standard Deviation of the Asset equals 20% and The Expected Return of the Asset equals 10%, the Coefficient of Variation (C.O.V.) equlas 2
Coefficient of Variation Calculator
Coefficient of Variation Calculator helps calculating Coefficient of Variation (C.O.V.)
What is Coefficient of Variation (C.O.V.)?
In probability theory and statistics, the coefficient of variation (CV), also known as relative standard deviation (RSD), is a standardized measure of dispersion of a probability distribution or frequency distribution.
In Investments theory - the coefficient of variation helps finding which investment is better.
Formula of Coefficient of Variation (C.O.V.)
The Coefficient of Variation equals to the ratio between the The Standard Deviation of the Asset and The Expected Return of the Asset
Example of Coefficient of Variation
Coefficient of Variation (C.O.V.) values
If The Standard Deviation of the Asset equals 10% and The Expected Return of the Asset equals 10%, the Coefficient of Variation (C.O.V.) equlas 1
If The Standard Deviation of the Asset equals 10% and The Expected Return of the Asset equals 20%, the Coefficient of Variation (C.O.V.) equlas 0.5
If The Standard Deviation of the Asset equals 20% and The Expected Return of the Asset equals 10%, the Coefficient of Variation (C.O.V.) equlas 2
Interpretation of Coefficient of Variation
Lower C.O.V. means a better asset