Coefficient of variation

A measure of the variability of a distribution, expressed as a proportion of the expected value. It is calculated as: [Standard Deviation]/[Expected value].

For example, if the Standard deviation of the Net Present Value of a project = $100m, and the Expected Net Present Value = $50m, then: Coefficient of variation = $100m/$50m = 2.0.

See also

• Expected value
• Net present value
• Standard deviation