From Volum 5 page 81:
“Getting rid of extreme returns (best and worst monthly returns each year) that increase the standard deviation.”
Why increase standard deviation, not decrease? If extreme returns are taken away, more returns will concentrate around mean.
Instead read it like this- “getting rid of extreme returns (best and worst monthly returns each year- the ones that increase standard deviation).”
Got it. Thanks. I think my poor English reading and writing skill is the primary barrier to pass level 3 (read large amount of qualitative material and write the morning section)
No prob…luckily the exam will probably be crystal clear wording similar to L2
Hey guys, The wording is crystal clear, but only for guys who trained a maximum via mocks & exercises. Only mastering the topics can ensure “correct interpretation” of the question; My feeling was that Level III was trickier than Level II question wise
Fortunately CFAI doesn’t use lengthy sentences and difficult to understand words. I never found such questions at any level. Sometimes the name of people in itemset/essay are difficult to pronounce but that’s it.