Loading....
Coupon Accepted Successfully!

 
Coefficient of Variation

Dispersion relative to mean of a distribution; CV=σ/μ (σ is std dev.)

 

Q: If the threshold return is higher than the risk-free rate, what will be the relationship b/w Roy's safety-first ratio (SF) and Sharpe's ratio?
  • Denominator (Sharpe) = Denominator (SF)
  • Rtarget > Rf
  • R – Rf > R - Rtarget
  • Sharpe > SF

Answer:
R – Rf > R - Rtarget

 





Test Your Skills Now!
Take a Quiz now
Reviewer Name