Quants Questions

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Quants Questions

Postby devdutt.deshpande » Fri Jan 29, 2016 4:32 am

An analyst is concerned with the symmetry and peaked ness of a distribution of returns over a period of time for a company she is examining. She does some calculations and finds that the median return is 4.2%, the mean return is 4.8%, and the modal return is 3.7%. She also finds that the measure of excess sample kurtosis is 2. Based on this information, the characterization of the Distribution of returns over time is: Skewness Kurtosis
Choose one answer.
a. Positive Platykurtic Incorrect
b. Negative Leptokurtic Incorrect
c. Negative Platykurtic Incorrect
d. Positive Leptokurtic Correct

Why is this postive lepto kurtic when excess kurtosis is less than 3??

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Re: Quants Questions

Postby edupristine » Tue Feb 09, 2016 5:30 am

Its given Excess kurtosis is 2. So Total kurtosis is 3+2=5, which means it is leptokurtic.

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