- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 10. Kurtosis in Return Distributions
CFA Practice Question
A coefficient of skewness of +2.48 indicates:
II. a large positive skewness
III. the tail of the distribution is to the right
I. the mean is larger than the median
II. a large positive skewness
III. the tail of the distribution is to the right
A. I and III
B. II and III
C. I, II and III
Explanation: In a positively skewed distribution, the mean is greater than the median or mode. The coefficient of skewness (Sk) generally lies between -3 and +3. Therefore, a Sk of +2.48 indicates significant positive skewness.
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