McGourn asks Walter why he uses standard deviation as the measure of internal dispersion and whether there are better dispersion measures. Walter responds, “Standard deviation has the advantage of comparability across investment firms. Other measures, such as the high/low range and the interquartile range, are skewed by outliers.”
Q. With respect to the relative merits of internal dispersion measures, Walter is least likely correct about:
- standard deviation.
- interquartile range.
- high–low range.
