CFA Level I · CFA Level I Exam · Introduction to Financial Data Science
A researcher wants to show the distribution, median, quartiles and outliers of monthly returns for several funds side by side. The visualization most appropriate for this purpose is a:
A box plot is most appropriate. It summarizes each fund's return distribution through the median, quartiles and outliers, and places several funds side by side for comparison. A word cloud handles text frequency, and a tree map shows hierarchical proportions.
- Abox plotCorrect
- Bword cloud
- Ctree map of fund names
Explanation
A box plot shows median, quartiles and outliers for each group and allows side-by-side comparison. A word cloud is for text frequency, and a tree map displays hierarchical proportions rather than return distributions.
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