CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

The following data represents the annualized total returns (in percentages) for twelve bond funds.

14.2, 12.7, 11.7, 11.5, 11.2, 10.8, 10.0, 9.2, 9.1, 8.4, 7.9, -2.1

The median of the distribution is closest to which of the following?

A. 9.47
B. 9.55
C. 10.4
Correct Answer: C

The median is the average of the middle two ordered observations: (10.0 + 10.8)/2 = 10.4

User Contributed Comments 3

User Comment
viannie AHhhh! didn't read the question carefully! costly mistake. By 'reading' it as 'mean', I wasted time computing + it's wrong anyway! ad they've the mean as the answer option! got to be careful!
Yrazzaq88 I did the same thing viannie. Our eyes are playing tricks on us! LOL
Rachelle3 Always think of median as half or in the middle then you will remember formula! 12 given data halved = 6 there are 2 numbers as this set of numerical data is even so add the two middle numbers together then divide by 2 like they show you. Whenever you have a set of even numbers always do this!
So if there were 6 given data then median or half is 3 so choose numbers in 3rd places add the two numbers together from in the middle then divide by 2! I hope I made it clearer.
You need to log in first to add your comment.