CFA Level 1: Dispersion and Coefficient of Variation Calculation | Test Prep

Dispersion and Coefficient of Variation Calculation

Prev Question Next Question

Question

Two sets of observations, A and B, each contain 160 observations. The variance of data in A equals 198.4 and that of the data in B equals 231.9. The two sets have the same mean. Then, A has a ________ dispersion and a ________ coefficient of variation.

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

C

B has a higher variance and hence, a higher dispersion. The coefficient of variation equals the standard deviation divided by the mean. Since A and B have the same mean, B has a higher coefficient of variation.

Prev Question Next Question