- CFA Exams
- CFA Level I Exam
- Study Session 3. Quantitative Methods (2)
- Reading 9. Common Probability Distributions
- Subject 6. The Normal Distribution

###
**CFA Practice Question**

Which of the following is (are) true about a normal distribution?

II. It can be characterized completely by a single parameter.

III. It ranges from negative infinity to positive infinity.

IV. It is positively skewed.

I. It is a bimodal distribution.

II. It can be characterized completely by a single parameter.

III. It ranges from negative infinity to positive infinity.

IV. It is positively skewed.

A. III and IV

B. III only

C. II and III

**Explanation:**A normal distribution is completely characterized by 2 parameters, mean and variance. It ranges from negative infinity to positive infinity, has a single mode or peak (occurring at the mean), is symmetrical about the mean, and has zero skewness.

###
**User Contributed Comments**
0

You need to log in first to add your comment.