# What Does Expected Return Mean in Coefficient of Variation?

• sotellme
In summary, the discussion was about the formula for calculating the Coefficient of Variation, which is the standard deviation divided by the expected return. The expected return in this case is the mean value. The accuracy of the formula was also confirmed by a source.
sotellme
Please give me some hints on resolving this problem. Thanks!

For example there are 3 persons who run 2, 2 and 2 metres. n=3 and the mean of the metres is 2. Standard deviation is 2 (let us pretend so). The formula for Coefficient of Variation is ; Standard deviation/ Expected return.

I wonder what is Expected return in this case? Is that the mean value? Besides is the formula for Coefficient of Variation right? I have got it from this link http://www.investopedia.com/terms/c/coefficientofvariation.asp

Thanks

sotellme said:
The formula for Coefficient of Variation is ; Standard deviation/ Expected return.
Yes.
sotellme said:
what is Expected return in this case? Is that the mean value?
Yes.

## What is the Coefficient of Variation (CV)?

The Coefficient of Variation (CV) is a statistical measure that represents the ratio of the standard deviation to the mean of a data set. It is expressed as a percentage and is used to compare the variability of different data sets.

## How is the Coefficient of Variation (CV) calculated?

The Coefficient of Variation (CV) is calculated by dividing the standard deviation by the mean and then multiplying by 100 to get a percentage. The formula is CV = (standard deviation / mean) * 100.

## What does a high Coefficient of Variation (CV) indicate?

A high Coefficient of Variation (CV) indicates that the data set has a large amount of variability or dispersion compared to the mean. This means that the data points are spread out over a wider range.

## What is a good Coefficient of Variation (CV) value?

A good Coefficient of Variation (CV) value is typically less than 15%. This suggests that the data set has a relatively low amount of variability compared to the mean. However, the interpretation of a "good" CV value can vary depending on the context and the type of data being analyzed.

## How can the Coefficient of Variation (CV) be used in data analysis?

The Coefficient of Variation (CV) can be used to compare the variability of different data sets, especially when the means of the data sets are different. It can also be used to identify outliers and determine the consistency of data. Additionally, the CV can be used to calculate the margin of error when estimating a population mean from a sample mean.

• Set Theory, Logic, Probability, Statistics
Replies
6
Views
2K
• Set Theory, Logic, Probability, Statistics
Replies
6
Views
1K
• Set Theory, Logic, Probability, Statistics
Replies
1
Views
729
• Set Theory, Logic, Probability, Statistics
Replies
7
Views
2K
• Set Theory, Logic, Probability, Statistics
Replies
3
Views
6K
• Set Theory, Logic, Probability, Statistics
Replies
3
Views
993
• Set Theory, Logic, Probability, Statistics
Replies
7
Views
3K
• Set Theory, Logic, Probability, Statistics
Replies
2
Views
3K
• Quantum Physics
Replies
4
Views
1K
• Set Theory, Logic, Probability, Statistics
Replies
1
Views
10K