- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 3. Statistical Measures of Asset Returns
- Subject 2. Measures of Dispersion
CFA Practice Question
You are researching a company's annual return for the period of 2000-2020 years. The mean was 6% and standard deviation was 18%. If your minimal acceptable return was 4%, what could NOT be your target semideviation? A. 0%
B. 12%
C. 25%
Correct Answer: C
You would have fewer returns included in the calculation, and the target semideviation would be smaller than 18%. 25% would not be possible.
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