- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 9. Symmetry and Skewness in Return Distributions

###
**CFA Practice Question**

The total return for utilities stock mutual funds has a mean of 10.5% and a sample relative skewness of Sk = -2.5. Based on this information, which of the following statements is true?

A. The median of the distribution is less than or equal to 10.5%.

B. The median of the distribution greater than 10.5%.

C. The distribution is mesokurtic.

**Explanation:**Since the distribution is negatively skewed (Sk = -2.5 < 0), the mean is less than the median, so the median of the distribution must be greater than 10.5%.

###
**User Contributed Comments**
0

You need to log in first to add your comment.