Loading...
CFA Level 1
Quantitative Methods

Measures of Central Tendency in Stock Returns

Very Hard Statistical Concepts And Returns Measures Of Central Tendency

A finance analyst is reviewing the monthly returns of a company's stock over the last 12 months, which were as follows:

Returns (%): 5, 7, -2, 10, 3, -1, 8, 4, 6, 2, 1, 9

The analyst aims to determine the best measure of central tendency to represent the stock's performance, taking into account both the returns and the presence of an outlier (the return of -2%). Which of the following would best represent the central tendency of these returns?

Hint

Submitted8.5K
Correct4.2K
% Correct50%