CFA Practice Question

There are 434 practice questions for this study session.

CFA Practice Question

Which of the following does (do) not describe a multivariate normal distribution for the return on n stocks?

I. n mean returns
II. n variances
III. sum of n mean returns
IV. n(n-1)/2 correlations
Correct Answer: III only

A multivariate normal distribution is completely specified if one has the lists for the mean returns, variances, and correlations or covariances between the variables.

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