Positively Skewed Distributions: Characteristics, Upside, and Investor Attraction

Positively Skewed Distributions

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Question

Which is true of positively skewed distributions?

I. They have a limited, but frequent, upside.

II. Their downside is less frequent but more unlimited.

III. They are attractive to investors because their mean is larger than their median.

Answers

Explanations

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A. B. C. D. E.

A

I and II are false. The correct statements for them would be: 1) positively skewed distributions have a limited, but frequent, downside, and 2) they have a less frequent, but more unlimited, upside. III is true.

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