CFA Practice Question

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CFA Practice Question

Which of the following statements concerning the standard deviation is not true?

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
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