- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 3. Statistical Measures of Asset Returns
- Subject 3. Measures of Shape of a Distribution
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%.
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