The Degree to Which a Data Distribution Has One Extended

question 19

Multiple Choice

The degree to which a data distribution has one extended "tail" showing either unusually large or unusually small values is called:

• A)kurtosis
• B)peakedness
• C)skewness
• D)symmetry
• E)unimodal

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Definitions:

Factor Portfolio

A portfolio that is constructed to have a high sensitivity to certain economic or financial factors, aiming to capture specific risk premiums.

Well-diversified Portfolio

An investment portfolio comprised of various assets to reduce exposure to risk by spreading investments across different industries, asset classes, or other categories.

Beta

A measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.

Factor Portfolio

A portfolio constructed to have a high sensitivity to certain risk factors, aiming to achieve specific investment outcomes related to those factors.