# Coefficient of Variation (C.O.V.) Calculator

## Coefficient of Variation Calculator

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Coefficient of Variation Calculator helps calculating Coefficient of Variation (C.O.V.)

## What is Coefficient of Variation (C.O.V.)?

In probability theory and statistics, the coefficient of variation (CV), also known as relative standard deviation (RSD), is a standardized measure of dispersion of a probability distribution or frequency distribution.

In Investments theory - the coefficient of variation helps finding which investment is better.

## Formula of Coefficient of Variation (C.O.V.)

The Coefficient of Variation equals to the ratio between the The Standard Deviation of the Asset and The Expected Return of the Asset

## Example of Coefficient of Variation

Coefficient of Variation (C.O.V.) values

If The Standard Deviation of the Asset equals 10% and The Expected Return of the Asset equals 10%, the Coefficient of Variation (C.O.V.) equlas 1

If The Standard Deviation of the Asset equals 10% and The Expected Return of the Asset equals 20%, the Coefficient of Variation (C.O.V.) equlas 0.5

If The Standard Deviation of the Asset equals 20% and The Expected Return of the Asset equals 10%, the Coefficient of Variation (C.O.V.) equlas 2

## Interpretation of Coefficient of Variation

Lower C.O.V. means a better asset

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