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Statistics and Probability

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Coefficient of Variation

STATS-YCJLEL

Vantage Mutual Fund reports a mean yearly return of $8.4\%$ with a standard deviation of $6.6\%$.

Ultimate Mutual Fund reports a mean yearly return of $4.36\%$ with a standard deviation of $10.1\%$.

Which fund is riskier?

A

Vantage, with a coefficient of variation of $78.57\%$.

B

Vantage, with a coefficient of variation of $127.27\%$.

C

Ultimate, with a coefficient of variation of $43.17\%$.

D

Ultimate, with a coefficient of variation of $231.65\%$.