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CGeneralUpdated 2 Nov 2026

Coefficient of variation

Statistical measure of relative variability in investment returns.

Definition

Coefficient of variation is the statistical measure of relative variability in investment returns. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.

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In the room

How the word shows up in a real conversation.

Two cofounders disagree until they define Coefficient of variation. Once they agree it means “Statistical measure of relative variability in investment returns”, the argument becomes a decision.

Common mistake

Using Coefficient of variation as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.

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