- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 3. Statistical Measures of Asset Returns
- Subject 1. Measures of Central Tendency
CFA Practice Question
The following data represents the annualized total returns (in percentages) for twelve bond funds.
B. 9.55
C. 10.4
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
A distribution has only one median. 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. |