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The calculation of a security beta is the covariance between market return and a security return True False he coefficient of variation (CV) is   1

Finance Dec 02, 2020

The calculation of a security beta is the covariance between market return and a security return

True

False

he coefficient of variation (CV) is

  1.

The standard deviation divided by expected income

  2.

The varaince devided by expected return

  3.

The standard deviation divided by expected return

  4.

Beta divided by expected income

Variance of returns is a measure of the variability of returns, and it is always

  1.

smaller than its square root, its standard deviation.

  2.

larger than its square root, its standard deviation.

  3.

not significant compared to the standard deviation.

  4.

variance could be smaller or greater than standard deviation

Expert Solution

1.) The coefficient of variation is standard deviation divided by the expected returns.

2.) Variance of returns is the measure of the variability of returns and it always larger than its square root from standard deviation.

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