Explanation:

• Correct (A): A negatively skewed distribution is characterized by a longer left tail, indicating that the average magnitude of negative deviations from the mean is larger than the average magnitude of positive deviations. This aligns with the graphical depiction described in the question.

• Incorrect (B): Leptokurtosis refers to the relative peakedness of a distribution, not the skewness. A leptokurtic distribution is more peaked than a normal distribution, but this does not describe the skewness of the tails.

• Incorrect (C): Positive skewness would imply a longer right tail, which is the opposite of the scenario described in the question.

This question tests the candidate's ability to interpret and evaluate measures of skewness and kurtosis to address an investment problem, as outlined in the Quantitative Methods section of the CFA curriculum.