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Why is the coefficient of variation often a better risk measure when comparing different projects than the standard deviation?
Whenever we wish to compare the risk of investments that have different means, we make use of the coefficient of variation (CV). The CV symbolizes the standard deviation's percentage of the mean. For the reason that the CV is a ratio, it adjusts for variations in means, while the standard deviation doesn't. Thus the CV supplies a standardized measure of the degree of risk that can be used to compare alternatives.
It is a method of budgeting in which the actions that incur costs in every functional area of a company are recorded and their relationships are defined and evaluated. Activities a
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Due to the complexity of the tasks involved in many projects, communication of responsibility for those tasks is often helped by means of graphical planning techniques.
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