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CV OR NOT CV? THAT IS THE QUESTION
Author(s) -
Patterson Cleveland S.
Publication year - 1989
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/j.1467-629x.1989.tb00158.x
Subject(s) - confusion , standard deviation , investment (military) , economics , attractiveness , contradiction , variation (astronomy) , actuarial science , relative standard deviation , econometrics , statistics , mathematics , psychology , political science , epistemology , philosophy , physics , politics , astrophysics , psychoanalysis , law , detection limit
There is considerable confusion and contradiction in the standard finance textbooks regarding the question as to whether investment risks should be estimated using the standard deviation of possible outcomes, or their coefficient of variation. This confusion arises in part from failure to distinguish between the relative risk and the relative attractiveness of alternative projects. It also arises from failure to distinguish between the risk implications of market returns variability and those of accounting returns variability.