- 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 sample variance based on the following data points: -6.0 percent, 5.8 percent, 8.4 percent, and 9.7 percent, is closest to ______.
A. 0.000360
B. 0.003855
C. 0.005140
Explanation: The sample mean is calculated as (-6.0% + 5.8% + 8.4% + 9.7%)/4 = 4.48% and the sample variance is ([-6.0% - 4.48%]2 + [5.8% - 4.48%]2 + [8.4% - 4.48%]2 + [9.7% - 4.48%]2) / (4-1) = 0.005140.
User Contributed Comments 1
| User | Comment |
|---|---|
| nickluca24 | You can use the calculator for this problem ->2nd, 7 (Data) ->2nd, CE|C (Clr Work) X01 = -.06 X02 = .058 X03 = .084 X04 = .097 ->2nd, 8 (Stat) ->go down to Sx -> square Sx (Sx * Sx) Explained, Sx = sample standard deviation Var = sd squared |