CFA textbook says positively skewed preferred. Why?
I am studying for a lvl1 of the CFA exam.
One of the chapters deals with normal distributions of returns and goes on to discuss the skewness and I have a few questions about it.
The textbook says in a positively skewed returns:
- mode < median < mean
- investors are more attracted because the mean return falls above the median.
Here is an image of positively skewed distribution from wikipedia.
I don’t understand how the mean is bigger than mode and media.
I don’t understand why the investors are more attracted to positively skewed distribution in general.
Could somebody help me understand these things?