CFA Practice Question

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CFA Practice Question

In computing skewness, which of the following is true?

I. It uses the cubed deviation from the mean.
II. It raises the deviation from the mean to the third power.
III. The formula preserves the direction of the deviation.
Correct Answer: I, II and III

I and II are true and equivalent. III is true because the cube of a negative number is still a negative number: -2 * -2 * -2 = -8.

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