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Basic Question 2 of 9

Returns are, in fact, not normally distributed. This means that the ______

I. returns are skewed.
II. returns are not symmetrical around the mean.
III. returns' distribution can be defined by mean and variance only.
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User Contributed Comments 1

User Comment
angusmyers I don't know if i agree with this... you could hypothetically have a uniform distribution on returns (satisfying the non 'normal distribution') but a uniform distribution is not skewed left or right? Could the same be said for a bimodal distribution? Hence I think only II should be the correct answer. Thoughts?
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Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

describe characteristics of the major asset classes that investors consider in forming portfolios

CFA® 2025 Level I Curriculum, Volume 2, Module 1.