CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

Which of the following statements is true?

A. For large samples, we obtain excess kurtosis by subtracting 3 units from kurtosis.
B. Kurtosis varies from normal distribution to normal distribution.
C. A normal distribution may be leptokurtic or platykurtic.
D. It is not unusual for a sample of 100 or larger taken from a normal distribution to have excess kurtosis greater than 1.
Correct Answer: A

For large samples, we obtain excess kurtosis by subtracting 3 units from kurtosis. All the other statements are incorrect. All normal distributions have kurtosis equal to 3. A normal distribution is mesokurtic, not leptokurtic or platykurtic. For a sample of 100 or larger taken from a normal distribution, excess kurtosis greater than 1 is considered unusually large.

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