What happens when a distribution is positively skewed? - ProProfs Discuss
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What happens when a distribution is positively skewed?



A. Standard deviation overestimates risk
B. Standard deviation correctly estimates risk
C. Standard deviation underestimates risk
D. The tails are fatter than in a normal distribution
E. None of the above

This question is part of Security Analysis and Portfolio Management (SAPM) - Quiz 1
Asked by Kaushalmandalia, Last updated: Jan 22, 2020

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4 Answers

C. Perez

Just getting better day by day

C. Perez, Writer, Writer, Cleveland

Answered Aug 01, 2019

The correct answer to this question is A, and Standard deviation overestimates risk. This is related to statistics, and it is a measurement. This measurement brings quantity to several variations...Read More
 

T. Moore

Have keen interest in writing, traveller by heart.

T. Moore, Writer, MA, Washington

Answered Nov 27, 2018

When a distribution is positively skewed it is very different from a typical bell curve result, a normal distribution, as it has a long right-hand tail. High scores are occurring at the extreme,...Read More
 

H. Martin

H. Martin, Content Writer, Charlotte

Answered Sep 14, 2018

There are two kinds of skewed distributions. A distribution is categorically skewed if the totals fall toward the lower side of the scale and there are very few higher results. Positively skewed...Read More
 

John Smith

John Smith

Answered Oct 19, 2016

Standard deviation overestimates risk

When a distribution is positively skewed, standard deviation overestimates risk.
 

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