DEFINITION of 'Coefficient Of Variation  CV'
A statistical measure of the dispersion of data points in a data series around the mean. It is calculated as follows:
The coefficient of variation represents the ratio of the standard deviation to the mean, and it is a useful statistic for comparing the degree of variation from one data series to another, even if the means are drastically different from each other.
INVESTOPEDIA EXPLAINS 'Coefficient Of Variation  CV'
In the investing world, the coefficient of variation allows you to determine how much volatility (risk) you are assuming in comparison to the amount of return you can expect from your investment. In simple language, the lower the ratio of standard deviation to mean return, the better your riskreturn tradeoff.
Note that if the expected return in the denominator of the calculation is negative or zero, the ratio will not make sense.

Variance
The spread between numbers in a data set, measuring Variance ... 
Mean
The simple mathematical average of a set of two or more numbers. ... 
RiskReturn Tradeoff
The principle that potential return rises with an increase in ... 
Standard Deviation
1. A measure of the dispersion of a set of data from its mean. ... 
Dispersion
A statistical term describing the size of the range of values ... 
NonSampling Error
A statistical error caused by human error to which a specific ...

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