- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 4. Probability Trees and Conditional Expectations
- Subject 1. Expected Value and Variance
CFA Practice Question
The expected value of a random variable is ______.
A. the positive square root of the variance
B. a measure of dispersion
C. the probability-weighted average of the possible outcomes of the random variable
Explanation: The expected value of a random variable is the probability-weighted average of the possible outcomes of the random variable.
User Contributed Comments 1
| User | Comment |
|---|---|
| mc25456 | The expected value of a random variable is the probability-weighted average of the possible outcomes of the random variable. |