- CFA Exams
- CFA Exam: Level I 2021
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 6. Measures of Dispersion
CFA Practice Question
The quantity SUM(X - XBAR) is not used as a measure of dispersion because it is ______.
B. always a positive value
C. always a negative value
A. always equal to zero
B. always a positive value
C. always a negative value
Correct Answer: A
User Contributed Comments 3
| User | Comment |
|---|---|
| hardig | ok, not understanding this - what is xbar? |
| loisliu88 | x-bar is the symbol for the sample mean |
| choas69 | x - mean if the value was less than the mean will lead to zero and interrupt the whole thing in which they had to put the ^2 |