sirra0%6 CCoefcient OF Variation (CV) Denton | Investopedia Sere hoc Syme oo Nanotechnology Products Coefficient Of Variation - CV ‘You may also like: Five Chart Patterns you need to know... sPondesaDispersons Nance, ses & Noro Lubes DEFINITION of ‘Coefficient Of Variation =CV' A statistical measure of the dispersion of datapoints in a data eerles around the mean. Its calculated a follows: Sstanderd Deviation aration =~ Expected Return Se TESS OK 000 ‘The coefficient of variation represents the ratio ofthe standard deviation to the mean, and it JIN {sa useful statistic for comparing the degree of variation from one data series to another, ceven if the means are drastically different from each other. Next Up wawsce eeeresacrue vouram vom » Subscribe to our Free Newsletters! [Eneresi acces BREAKING DOWN ‘Coefficient Of Variation -CV' earn Me In the investing world, the coefficient of variation allows you to determine how much volatility (risk) you are assuming in comparison to the amount of return you ean expect from ‘your investment. In simple language, the lower the ratio of standard deviation to mean return, the better your rsk-return tradeoff Land Trust [Note that ifthe expected return in the denominator of the calculation is negative or zero, the Bagel Land ratio will not make sense, Land Flip Hard Landing Refine Your Financial Vocabulary Soft Landing Gain the Financial Knowledge You Need to Succeed. Investopedia's FREE Term of the Day Lend hhelps you gain a better understanding of al things financial with technical and easy-to- understand explanations. Clic here to begin developing your financial language with this daily newsletter, RELATED TERMS Variance ‘Standard Deviation ‘The spread between mumbers ina dat set, 4. Ameasure ofthe dispersion of art of data measuring Variance from ite mes Expected Return Volatility “The amount one would anticipate receiving 1. Atatitical measure ofthe dispersion of ‘onaninvestment that. returns fora given. pseu investopedia comrmsicicoefciertoariation asp 1