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Statistics - Coefficient of Variation

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A. Compute the coefficient of variation for each fund. If sample mean X represents return and s represents risk, then explain why the coefficient of variation can be taken to represent risk per unit of return. From this point of view which fund appears to be better? Explain

B. Compute a 75% Chebyshev interval around the mean for each fund. Use the intervals to compare the two funds. As usual, past performance does not guarantee future performance.

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The expert examines the coefficients of variation. A complete, neat and step-by-step solution is provided in the attached file.

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Coefficient of variation is a better tool to compare the two funds and the associated risks because the mean annualized percent returns are different for the two funds, so are the risks and the only way to compare the two is by using ...

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