- CFA Exams
- CFA Exam: Level I 2021
- Study Session 3. Quantitative Methods (2)
- Reading 9. Common Probability Distributions
- Subject 6. The Normal Distribution

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**CFA Practice Question**

Which of the following is (are) false regarding the normal curve?

II. The mean locates the axis of symmetry.

III. Total area under the curve is one, with 0.5 area to either side of the mean.

IV. The mean is greater than the mode.

I. The smaller the standard deviation, the steeper the bell curve.

II. The mean locates the axis of symmetry.

III. Total area under the curve is one, with 0.5 area to either side of the mean.

IV. The mean is greater than the mode.

Correct Answer: IV

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**User Contributed Comments**
3

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

rt2007 |
4 normal distribution mean=median=mode |

johntan1979 |
For I, it is referring to leptokurtic kurtosis. Formula is Sum of(x - mean)^4 / n(std dev)^4 The smaller the std dev, the larger the kurtosis (>3) |

Seancfa1 |
Thank-you Johntan |