Page 18 - FINAL CFA SLIDES DECEMBER 2018 DAY 3

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

C. σ2 = [(22 – 7.3)2 + (5 – 7.3)2 + (–7 – 7.3)2 + (11 – 7.3)2 + (2 – 7.3)2 + (11 – 7.3)2] / 6 = 80.2%2

B. σ = (80.2%2)0.5 = 8.96%

C. s2 = [(22 – 7.3)2 + (5 – 7.3)2 + (–7 – 7.3)2 + (11 – 7.3)2 + (2 – 7.3)2 + (11 – 7.3)2] / (6 – 1) = 96.3%2

A. = (96.3)0.5 = 9.8%