Page 17 - FINAL CFA SLIDES DECEMBER 2018 DAY 3

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Session Unit 2:
8. Statistical Concepts and Market Returns (A/B/C/C/B)

A. [22% + 5% + –7% + 11% + 2% +11%] / 6 = 7.3%

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B. Rank 1 : –7%, 2%, 5%, 11%, 11%, 22%; hence: (5% + 11%) / 2 = 8.0%.

C. The mode is the value that appears most often, or 11%.

C. Highest value minus the lowest value. 22% – (–7%) = 29.0%

B. (|22 – 7.3| + |5 – 7.3| + |–7 – 7.3| + |11 – 7.3| + |2 – 7.3| + |11 – 7.3|) / 6 = 7.33%