SurferNerd
Member
- Joined
- Jul 8, 2006
- Messages
- 90
- Gender
- Undisclosed
- HSC
- N/A
Posting here also for more exposure:
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
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