- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 3. Statistical Measures of Asset Returns
- Subject 1. Measures of Central Tendency

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**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

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**User Contributed Comments**
3

User |
Comment |
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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. |