Page 24 - FINAL CFA SLIDES DECEMBER 2018 DAY 3
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Session Unit 2:
8. Statistical Concepts and Market Returns
LOS 8.k: Describe the relative locations of the mean, median, and mode for a unimodal, non-symmetrical
distribution.
Measures of Sample Skew and Kurtosis. p154
When a distribution is right skewed, sample skewness is positive because the deviations above the
mean are larger on average. A left-skewed distribution has a negative sample skewness because the
deviations below the mean are larger on average.
Dividing by SD cubed standardizes the statistic and allows interpretation of the skewness
measure. If relative skewness is equal to zero, the data is not skewed.
Values of SK in excess of 0.5 in absolute value indicate significant levels of skewness.
