Question

Calculate the coefficient of variation of CLS stock if its expected return and standard deviation are 13.61% and 3.28%.

Select one:
A.
0.24
B.
0.86
C.
0.33
D.
0.57

Answer 1

The coefficient of variation (CV) is a measure of the dispersion or variability of a set of data points in relation to the mean. It is expressed as a percentage and can be calculated using the formula:CV = (standard deviation / mean) × 100To calculate the coefficient of variation of CLS stock if its expected return and standard deviation are 13.61% and 3.28%, respectively, we can plug in these values into the formula as follows:CV = (3.28 / 13.61) × 100CV = 0.24 × 100CV = 24%Therefore, the coefficient of variation of CLS stock is 0.24 or 24% (option A).