Question

why is coefficient of variation is calculated in dispersion??​

Answer 1

Answer:

The coefficient of variation (CV) is a statistical measure of the dispersion of data points in a data series around the mean. ... The lower the ratio of the standard deviation to mean return, the better risk-return trade-off.The coefficient of variation (CV) is a statistical measure of the dispersion of data points in a data series around the mean. The coefficient of variation represents the ratio of the standard deviation to the mean, and it is a useful statistic for comparing the degree of variation from one data series to another, even if the means are drastically different from one another.