- 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
The coefficient of variation is useful when:
II. the data sets being compared contain data in different measurement units.
III. the data sets being compared contain data with similar measurement units.
I. the frequency distribution contains open-ended classes or overlapping classes.
II. the data sets being compared contain data in different measurement units.
III. the data sets being compared contain data with similar measurement units.
A. III only
B. II only
C. I & II
Explanation: The coefficient of variation is useful when the means of the data sets differ widely or when the observations are in different measurement units.
User Contributed Comments 1
User | Comment |
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UcheSam | It permits direct comparisons of dispersion across different data sets and it is scale-free. |