Sharpe & CV --- use arithmetic or Geometric mean?

CFA Level I
#1

Came across a mock question recently, nasty bugger. Was given arithmetic and geometric mean, and asked to compute coefficient of variation & sharpe ratio. Answers were available for both methods; using arithmetic and geometric, and the question did not specify which to use? What’s to be done? Thanks

#2

arithmetic

#3

Use both for arithmetic.

#4

thanks

#5

Since standard deviation is based on the moment of a distribution (second moment, variance) it would make sense to compare it to another moment (first moment, ~arithmetic mean) to be consistent. geometric returns are more useful when thinking of capital appreciation etc.