Quantitative Methods Q117
117UBL Fund’s return for the last five years are as follow:
| Year | Return (%) |
| 2009 | -12 |
| 2010 | 10 |
| 2011 | 15 |
| 2012 | 17 |
| 2013 | 19 |
The mean absolute deviation of returns for this fund is closest to:
- Option : A
- Explanation : The Mean Absolute Deviation (MAD) is calculated through the following formula: Mean = (-12+10+15+17+19)/5 = 9.8% MAD = (|-12 - 9.8| + |10 - 9.8| + |15 – 9.8| + |17 – 9.8| + |19 – 9.8|)/5=8.72%.
