Question: An analyst gathered the following information about the return distributions for two portfolios during the same time period: The analyst stated that the distribution for

An analyst gathered the following information about the return distributions for two portfolios during the same time period:

Kurtosis Skewness Portfolio A 2.2 -1.3 Portfolio B 3.5 0.5

The analyst stated that the distribution for Portfolio A is more peaked than a normal distribution and that the distribution for Portfolio B has a long tail on the left side of the distribution. Which of the following is most true?
A. The statement is not correct in reference to either portfolio.
B. The statement is correct in reference to Portfolio A, but the statement is not correct in reference to Portfolio B.
C. The statement is not correct in reference to Portfolio A, but the statement is correct in reference to Portfolio B.

Kurtosis Skewness Portfolio A 2.2 -1.3 Portfolio B 3.5 0.5

Step by Step Solution

3.29 Rating (155 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

A is correct The analysts statement is not correct in r... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1455-M-S-L-R(9529).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!