Finance q- Coefficient of Var. (1 Viewer)

[SurferNerd]

Finance Help- Working with the Coefficient of Variation

The coefficient of variation equals standard deviation/expected returns...

My question (I have searched extensively on the net with little results) is, when you have a SD based on monthly data can you compute the CV using an annualized expected return E(R)? Or do both the SD and the E(R) have to be adjusted for the same time period, in which case you would annualize ur SD by multiplying it by 12^0.5??

Please help

 

[SurferNerd]

bump ^^

 

[SurferNerd]

No budding Fin or Stat students who know the answer?

Help would be really appreciated guys, this is confusing my mid-session study.

 

[jellybelly08]

Convert the units to an annual basis.

 

[Cookie182]

This is actually a good question, I'd also like to know (doing a finance unit atm too)