Mean over standard deviation

[archived_user]

Is there any use of the above ratio? Apparently stdev/mean is called the coefficient of variation, CV.
Is there anything significant about the mean return being bigger than the risk? For example how do you interpret r=6 σ=4 vs r= 8 σ=10?

 

[archived_user]

It’s similar to the Sharpe ratio; it’s a Roy’s safety-first ratio with a minimum acceptable return of zero.

 

[archived_user]

Thanks. Don’t you feel these guys sometimes get too much credit for something very simple?
For example, Sharpe and Roy. Did they really create these ratios? Aren’t the ratios self explanatory?
Sharpe=risk adjusted return and Roy=safety first ratio/excess over minimum risk adjusted return
Now compare that to Einstein’s E=mc2 or Planck’s E=hc/λ, (h=Planck’s constant), which are ground breaking discoveries describing the universe. Had these scientists not been so humble they could have been tempted to call them Einstein’s quotient or Planck’s ratio.