- 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

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**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

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**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 |