- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 3. Statistical Measures of Asset Returns
- Subject 2. Measures of Dispersion

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**CFA Practice Question**

What does the coefficient of variation (CV) generally lie between?

A. -1 and +1

B. 0% and infinity

C. It has unlimited values.

**Explanation:**Since mean can be negative or positive, the CV can be any value.

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**User Contributed Comments**
4

User |
Comment |
---|---|

yanpz |
By definition, CV is a statistical representation of the precision of a test; the function is standard deviation/mean x 100%. So it doesn't have to be "expected return". If it's not "expected return", then mean is possible to be negative. |

wollogo |
I agree fully, it is quite common to have negative returns meaning that CV will be negative. |

padasalasunil |
i thought CV = std dev / (absolute(mean)) |

Procbaby1 |
(std dev of a distribution)/(mean or expected value) |