Hi,

Please explain Standard Deviation and Coefficient of Variation in finance.

Thank you,
David

There's no mechanical or definitional difference in SD and CoV as used in finance, vs anywhere else.

Their applications in finance are for purposes of risk analysis, usually in terms of measuring the volatility of returns and / or asset prices.

I wondered... I know what they mean from a purely statistical point of view but wasn't absolutely sure they were applied the same way in finance, so I kept my mouth shut. :-) Something else good to know.