Relative Dispersion is the amount of dispersion relative to a benchmark. Coefficient of Variation is a scale-free (it has no units of measurement) ratio, of the standard deviation, of a set of observations. It measures volatility, where the lower the ratio, the better risk-return tradeoff.
Sharpe Ratio is a measure of the average excess return, earned per a unit of standard deviation of return. It is a readily used performance evaluation measure, but it has a couple of drawbacks being:
Note that the formula is: Sh = Mean Excess Return / sp; where (i) Mean Excess Return = (Rp – Rf) where (a) Rp is the mean return to the portfolio and (b) Rf is the risk-free asset; (ii) sp is the standard deviation of returns on the portfolio.
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Our deepest appreciation for your feedback. Statistics in itself is a large influx of information, that even the digestible version can be hard to digest. Therefore, we will always at the minimum, continue to explain it to the best of our abilities.
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1/30/2018 07:40:58 am
Statistics fundamentals about coefficient of variation and the sharpe ratio, is presented here in visibly logical way for us. it resume builder provides us good features, to create a good resume.
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1/30/2018 06:50:10 pm
We appreciate that you got the right information out of this. And yes, contingent on the type of work, statistical analysis is a good skill to have.
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2/27/2018 04:30:08 am
these factor of the ratio of accounting side is really tough to understand for me but after reading this article it seems so easy for me now.
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2/28/2018 08:22:30 pm
Coefficient of Variation (“CV”) and the Sharpe Ratio . last few days i try to read an article about it . after reading i learn so many new things
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