- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 6. Measures of Dispersion

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**CFA Practice Question**

Two sets of observations, A and B, each contain 160 observations. The variance of the data in A equals 198.4 and that of the data in B equals 231.9. The two sets have the same mean. Set A has a ______ dispersion and a ______ coefficient of variation.

A. lower; higher

B. lower; lower

C. higher; lower

**Explanation:**The coefficient of variation equals the standard deviation divided by the mean. Since A and B have the same mean, B has a higher coefficient of variation.

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**User Contributed Comments**
1

User |
Comment |
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ksnider |
variance = dispersion |