- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 6. Measures of Dispersion

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**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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