CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

Which is true of a leptokurtic distribution?

I. It will be more peaked than a normal distribution.
II. It will have thinner tails than a normal distribution.
III. It will be less peaked than a normal distribution.
IV. It will have fatter tails than a normal distribution.
A. I and II
B. I and IV
C. III and IV
Explanation: I and IV are true of leptokurtic distributions. This is also called having "excess kurtosis." II and III are characteristic of platykurtic distributions.

User Contributed Comments 5

User Comment
sabcfa1 more peaked and fatter tails ... leptokurtic dist has greater percentage of extreme outcomes than normal dist (see Vol 1, page 300 & figure 7-8)
poomie83 this is how I remember it

lepto is fatter

lepto sound like lypo which is what the fatties get done
maria15 Poomie83 - lol. But helpful :)
toscarlett poomie83 - really thanks!^)
CJPerugini I don't like the term "thin" and "fat" for the tails. It implies thickness not width.
You need to log in first to add your comment.