An Argument for 'Generalized' Mean-Coefficient of Variation (MCV) Analysis

Financial Management, [9:4], 51-58, 1980

Posted: 27 Aug 2014 Last revised: 17 Apr 2018

See all articles by John M. Wachowicz

John M. Wachowicz

University of Tennessee - Knoxville

Ronald E. Shrieves

University of Tennessee, Knoxville - Department of Finance

Date Written: December 1, 1979

Abstract

The article discusses the coefficient variation (CV) in investment returns. The mean-coefficient of variation (MCV) efficiency criterion is presented as an alternative to the mean-standard deviation (MSD) definition of efficiency. The differences in MCV and MSD definitions of efficiency are examined in this article on the basis of investors' risk preferences. Corporate decision makers, though they do not know the range of risk aversion coefficients for stockholders, they assume there is a finite range and this enables MCV to evaluate alternative risky ventures.

Suggested Citation

Wachowicz, John M. and Shrieves, Ronald E., An Argument for 'Generalized' Mean-Coefficient of Variation (MCV) Analysis (December 1, 1979). Financial Management, [9:4], 51-58, 1980, Available at SSRN: https://ssrn.com/abstract=2487463

John M. Wachowicz

University of Tennessee - Knoxville ( email )

Knoxville, TN 37996
United States
865-974-1729 (Phone)

HOME PAGE: http://web.utk.edu/~jwachowi/wacho_hp.htm

Ronald E. Shrieves (Contact Author)

University of Tennessee, Knoxville - Department of Finance ( email )

Knoxville, TN 37996
United States

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