- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 8. The Sharpe Measure of Risk-Adjusted Performance

###
**CFA Practice Question**

For an investment portfolio, the coefficient of variation of the returns on the portfolio is best described as measuring ______.

B. mean return per unit of risk

C. mean excess return per unit of risk

A. risk per unit of mean return

B. mean return per unit of risk

C. mean excess return per unit of risk

Correct Answer: A

The coefficient of variation is defined as the standard deviation of the portfolio (a measure of risk) divided by the mean return on the portfolio (i.e., risk per unit of mean return).

###
**User Contributed Comments**
0

You need to log in first to add your comment.