This one is from CFAI exam: Compared to a normal distribution, lognormal distribution is : a) skewed to the left b) skewed to the right c) useful in describing the distribution of stock prices d) useful in describing the distribution of portfolio My answer was B; as per CFAI online sample, correct answer is A. Schweser book 1 - page 199 - clearly states that lognormal distribution is skewed to the right. Which one is correct?
can it be that they asked which one is not correct.? edit: they are all correct EXCEPT a.
Page 398 of Book 1 of the CFAI Texts also says that lognormal distributions are skewed to the right. I would choose B in this instance.
Thank you… You are right, the question is : a lognormal distribution is “least likely” to be… and I conveniently skipped the two important words…