CFA Practice Question

CFA Practice Question

Which of the following is correct?
A. The mean for a t-distribution exceeds the median.
B. The mean for a lognormal distribution exceeds the median.
C. The mode for a t-distribution exceeds the mean.
Explanation: The lognormal distribution is a right skewed (positive skewed) bell shaped distribution with mean greater than median greater than mode. The t-distribution is a symmetric bell shaped distribution with mean = median = mode. For a symmetric bell shaped distribution like the t or normal we have: mean = median = mode.

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