- This topic has 9 replies, 6 voices, and was last updated Jun-175:31 am by
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Up6
When we find excess kurtosis, we need the exponent 4 of the deviations from the mean.
But we also need the standard deviation s (wich uses exponent 2 of the deviations from the mean).
Is there a quick way of going from Sum(Deviations)^4 –> the squared version (which can then be used in the stdev) ??Like on page 386 of CFAI book 1, they do the ^4 long business, and then they just say what s is, so I’m wondering if there was a shortcut, because I seem to only be able to get s by restarting the whole squaring process… :S
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Up4
PS: is it even realistic that we will be asked to find the kurtosis? it takes forever just to punch in the numbers. I feel like they are more likely to ask interpretation questions… thoughts?
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Up3
I agree – probably more interpretation than calculation. From Reading 7L Level I:
“explain measures of sample skewness and kurtosis”
So I doubt they’ll have calculation questions.
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Up3
Imo you just need to know the interpretation of Kurtosis, not calculate it.
My CFA instructor at EduPristine told that in theory CFA L1 should be passable without the use of a calculator.
I have known people who have walked into the exam without calculators, so yes, that is true. However wouldn’t recommend it! 😉
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Up2
so there ISN’T a way to go from the sum^4 to sum^2?
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Up1
Hmm. I’m not sure if they’ll ask us to calculate kurtosis. Usually, from the questions I’ve done, calculation hasn’t been asked but they focus more on asking you to analyse a kurtosis related question or maybe just a basic concept question.
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Up1
Unless they updated this LOS from last year, you shouldn’t need to know how to calculate kurtosis. Just know what excess is, how to interpret, etc.
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Up1
Imo you just need to know the interpretation of Kurtosis, not calculate it.
My CFA instructor at EduPristine told that in theory CFA L1 should be passable without the use of a calculator.
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