- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 62. Portfolio Risk and Return: Part I
- Subject 5. Portfolio Risk
CFA Practice Question
Which of the following statements concerning the standard deviation is not true?
B. It is the square root of the variance.
C. Given a normal distribution, there is a 68% probability that an asset's return will be within 1 standard deviation of its mean.
D. It cannot take on values less than 1.
A. It is a measure of dispersion.
B. It is the square root of the variance.
C. Given a normal distribution, there is a 68% probability that an asset's return will be within 1 standard deviation of its mean.
D. It cannot take on values less than 1.
Correct Answer: D
User Contributed Comments 4
| User | Comment |
|---|---|
| danlan | Standard deviation is always positive but can be < 1. |
| surob | ...but should be >=0 |
| azramirza | danlan..i think u got the opposite...what is not true...can not take on values less than ....implies it can...:)) |
| michlam14 | remember when there is no deviation from mean SD=0 for risk free portfolio |