- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 1. Portfolio Risk and Return: Part I
- Subject 4. Portfolio Risk, Return and Diversification
CFA Practice Question
Which of the following statements concerning the standard deviation is not true?
B. It is the square root of the variance.
C. Given a normal distribution, there is a 68% probability that an asset's return will be within 1 standard deviation of its mean.
D. It cannot take on values less than 1.
A. It is a measure of dispersion.
B. It is the square root of the variance.
C. Given a normal distribution, there is a 68% probability that an asset's return will be within 1 standard deviation of its mean.
D. It cannot take on values less than 1.
Correct Answer: D
User Contributed Comments 4
| User | Comment |
|---|---|
| danlan | Standard deviation is always positive but can be < 1. |
| surob | ...but should be >=0 |
| azramirza | danlan..i think u got the opposite...what is not true...can not take on values less than ....implies it can...:)) |
| michlam14 | remember when there is no deviation from mean SD=0 for risk free portfolio |