Loading...
CFA Level 1
Quantitative Methods

Comparison of Dispersion in Mutual Funds

Very Hard Statistical Concepts And Returns Measures Of Dispersion

Consider a scenario where an analyst is evaluating the performance of two mutual funds, Fund X and Fund Y, over a period of five years. The annual returns for each fund are as follows:

Fund X: 10%, 12%, 14%, 16%, 18%
Fund Y: 5%, 15%, 20%, 10%, 25%

The analyst is interested in understanding the variability of returns of these two funds to determine which fund exhibits more consistent performance over the specified period. Which of the two funds displays a greater measure of dispersion in its returns?

Hint

Submitted2.6K
Correct2.4K
% Correct91%