- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 6. Measures of Dispersion
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? |
| Shroud | For variance, the difference is squared. It doesn't matter if they are above or below, it's the "distance" that's being measured. So values the same distance in either direction will have the same variance. |