CFA Practice Question

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CFA Practice Question

Which of the following measures of dispersion are based on deviations from the mean?

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.

User Contributed Comments 1

User Comment
Xuengzilam imagine the mean (average) is your target
each data point is like a dart hitting somewhere on the board
the "deviation" is how far each dart is from the target
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