- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 10. Kurtosis in Return Distributions

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**CFA Practice Question**

Which of the following statements is true?

B. A leptokurtic distribution is one that is less peaked than a normal distribution.

C. A leptokurtic distribution will have an excess kurtosis greater than 0.

D. A platykurtic distribution will have an excess kurtosis greater than 0.

A. A platykurtic distribution is one that is more peaked than a normal distribution.

B. A leptokurtic distribution is one that is less peaked than a normal distribution.

C. A leptokurtic distribution will have an excess kurtosis greater than 0.

D. A platykurtic distribution will have an excess kurtosis greater than 0.

Correct Answer: C

A leptokurtic distribution will have an excess kurtosis greater than 0.

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**User Contributed Comments**
4

User |
Comment |
---|---|

bidisha |
how to understand intuitively |

jasonkwk |
leptokurtic means pull up the whole normal distribution , causing " fat tail" means extreme event likely to happen like the 1987 market crash which happen at 20SD from the means. |

Yrazzaq88 |
L for Large = Lepto Large = Greater than 0 |

michaeloa3 |
I think of lepto like Leap as in high or platy as in "plate", which is flat |