- 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
Which of the following measures of dispersion are based on deviations from the mean?
II. Standard deviation
III. Variance
I. Mean absolute deviation
II. Standard deviation
III. Variance
A. I and III
B. II and III
C. I, II and III
Explanation: The formulas for all three measures are based on deviation from the mean. Note that variance is the standard deviation squared.
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