Consider the mean monthly return and the standard deviation for three industry sectors, as shown in Exhibit

Question:

Consider the mean monthly return and the standard deviation for three industry sectors, as shown in Exhibit 2:

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Based on the coefficient of variation (CV), the riskiest sector is:
A. utilities.
B. materials.
C. industrials.

A fund had the following experience over the past 10 years:

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2024 CFA Program Curriculum Level I Volume 1

ISBN: 9781953337672

1st Edition

Authors: CFA Institute

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Question Posted: Feb 01, 2024 08:30 AM

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Consider the mean monthly return and the standard deviation for three industry sectors, as shown in Exhibit

Question:

Exhibit 2: Mean Monthly Return and Standard Deviations Sector Utilities (UTIL) Materials (MATR) Industrials (INDU) Mean Monthly Return (%) 2.10 1.25 3.01 Standard Deviation of Return (%) 1.23 1.35 1.52

Step by Step Answer:

B is correct The CV is the ratio of the ...View the full answer

2024 CFA Program Curriculum Level I Volume 1

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