Cv Statistics Formula Excel. Based on the information, you will choose stock abc and xyz to invest since they have the lowest coefficient of variation. When comparison has to be made between two series then the relative measure of dispersion, known as coeff.of variation is used.
When comparison has to be made between two series then the relative measure of dispersion, known as coeff.of variation is used. Cv = σ / ǩ, cv is the coefficient of variation; Coefficient of variation (in financial terms) is also referred to as volatility of the investment.
In its simplest terms, the coefficient of variation is simply the ratio between the standard deviation and the mean.
Once you click ok, the coefficient of variation for this dataset will be displayed: Statistical theory defines a statistic as a function of a sample where the function itself is independent of the sample’s distribution. Coefficient of variation qwe = 6.92% / 8.9% = 0.77. Ǩ is the arithmetic mean value of the variance of values.