Quick Definition

The Coefficient of Variation (CV) is a statistical measure that quantifies the relative variability of a data set, expressed as a ratio of the standard deviation to the mean.

Formula

Examples

• 1In investment, CV helps compare the risk of stocks with different average returns.
• 2In project management, CV is used to assess the risk and variability of different project costs.
• 3In personal finance, CV can help an individual assess the consistency of their monthly expenses or income streams.

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