Page 54 - FINAL CFA SLIDES JUNE 2019 DAY 2
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LOS 8.g: Calculate and interpret 1) a range and a Session Unit 2:
mean absolute deviation and 2) the variance and 8. Statistical Concepts and Market Returns
standard deviation of a population and of a sample.
Example: Assume the 5-year annualized total returns for the five investment managers used in the earlier example
represent all of the managers at a small investment firm. What is the population variance of returns?
KEY POINT/EXAM TECHNIQUE:
σ > MAD - that holds true in general.
