- 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
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.
User Contributed Comments 1
| User | Comment |
|---|---|
| ksnider | variance = dispersion |