American_Bankers_Association

CTFA · Question #67

This statistic can be used as a quantitative measure of relative "financial risk."

The correct answer is C. (CVEPS - CVEBIT). See the full explanation below for the reasoning.

Investment Management

Question

This statistic can be used as a quantitative measure of relative "financial risk."

Options

ACoefficient of variation of earnings per share (CVEPS)
BCoefficient of variation of operating income (CVEBIT)
C(CVEPS - CVEBIT)
D(CVEPS + CVEBIT)

How the community answered

(41 responses)

A
10% (4)
B
2% (1)
C
83% (34)
D
5% (2)

Topics

#financial risk#coefficient of variation#EPS#operating income

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