- CFA Exams
- CFA Level I Exam
- Study Session 18. Portfolio Management (1)
- Reading 52. Portfolio Risk and Return: Part I
- Subject 2. Variance and Covariance of Returns
CFA Practice Question
The scores that have the greatest effect on the value of the variance are those ______.
A. below the mean
B. nearest the mean
C. farthest from the mean
User Contributed Comments 2
| User | Comment |
|---|---|
| soukhov | why not below? |
| bidisha | It depends on farthest DISTANCE from the mean. Which can be above OR below. Like if the mean is 20 it is effected more by say a 1000 than 50. It doesn't mateer if its a -1000 or 1000. It's pulled more by extreme figures. |