- 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 |