The harmonic mean of 3, 4, and 5 is:
A. 3.74.
B. 3.83.
C. 4.12.
Answer: B
The harmonic mean of 3, 4, and 5 is:
Showing posts with label Statistical Concepts and Market Returns. Show all posts
Showing posts with label Statistical Concepts and Market Returns. Show all posts
Which of the following is most accurate regarding a distribution of returns that has a mean greater than its median?
Which of the following is most accurate regarding a distribution of returns that has a mean greater than its median?
A. It is positively skewed.
B. It is a symmetric distribution.
C. It has positive excess kurtosis.
Answer: A
A distribution of returns that has a greater percentage of small deviations from the mean and a greater percentage of extremely large deviations from the mean compared to a normal distribution:
A distribution of returns that has a greater percentage of small deviations from the mean and a greater percentage of extremely large deviations from the mean compared to a normal distribution:
A. is positively skewed.
B. has positive excess kurtosis.
C. has negative excess kurtosis.
Answer: B
The annual returns for FJW's common stock over the years 2003, 2004, 2005, and 2006 were 15%, 19%, -8%, and 14%.
The annual returns for FJW's common stock over the years 2003, 2004, 2005, and 2006 were 15%, 19%, -8%, and 14%.
1. What is the arithmetic mean return for FJW's common stock?
A. 10.00%.
B. 14.00%.
C. 15.25%.
2. What is the geometric mean return for FJW's common stock?
A. 9.45%.
B. 14.21%.
C. It cannot be determined because the 2005 return is negative.'
Answer:
1. A
(15% + 19% + (-8%) + 14%) / 4 = 10%
2. A
(1.15 x 1.19 x 0.92 x 1.14)0-25- 1 = 9.45%
For a skewed distribution, what is the minimum percentage of the observations that will lie between ±2.5 standard deviations of the mean based on Chebyshev's Inequality?
For a skewed distribution, what is the minimum percentage of the observations that will lie between ±2.5 standard deviations of the mean based on Chebyshev's Inequality?
A. 56%.
B. 75%.
C. 84%.
Answer: C
Assuming that the distribution of XYZ stock returns is a sample, what is the sample standard deviation?
XYZ Corp. Annual Stock Prices
2003 2004 2005 2006 2007 2008
22% 5% -7% 11% 2% 11%
Assuming that the distribution of XYZ stock returns is a sample, what is the sample standard deviation?
A. 9.8%.
B. 72.4%.
C. 96.3%.
Answer: A
Assuming that the distribution of XYZ stock returns is a sample, the sample variance is closest to:
XYZ Corp. Annual Stock Prices
2003 2004 2005 2006 2007 2008
22% 5% -7% 11% 2% 11%
Assuming that the distribution of XYZ stock returns is a sample, the sample variance is closest to:
A. 5.0%2.
B. 72.4%2.
C. 96.3%2.
Answer: C
Assuming that the distribution of XYZ stock returns is a population, what is the population standard deviation?
XYZ Corp. Annual Stock Prices
2003 2004 2005 2006 2007 2008
22% 5% -7% 11% 2% 11%
Assuming that the distribution of XYZ stock returns is a population, what is the population standard deviation?
A. 5.02%.
B. 8.96%.
C. 46.22%.
Answer: B
Assuming that the distribution of XYZ stock returns is a population, what is the population variance?
XYZ Corp. Annual Stock Prices
2003 2004 2005 2006 2007 2008
22% 5% -7% 11% 2% 11%
Assuming that the distribution of XYZ stock returns is a population, what is the population variance?
A. 6.8%2.
B. 7.7%2.
C. 80.2%2.
Answer: C
What is the mean absolute deviation for XYZ stock returns?
XYZ Corp. Annual Stock Prices
2003 2004 2005 2006 2007 2008
22% 5% -7% 11% 2% 11%
What is the mean absolute deviation for XYZ stock returns?
A. 5.20%.
B. 7.33%.
C. 29.0%.
Answer: B
What is the range for XYZ stock returns?
XYZ Corp. Annual Stock Prices
2003 2004 2005 2006 2007 2008
22% 5% -7% 11% 2% 11%
What is the range for XYZ stock returns?
A. 11.0%.
B. 22.0%.
C. 29.0%.
Answer: C
What is the mode of the returns for XYZ stock?
XYZ Corp. Annual Stock Prices
2003 2004 2005 2006 2007 2008
22% 5% -7% 11% 2% 11%
What is the mode of the returns for XYZ stock?
A. 7.3%.
B. 8.0%.
C. 11.0%.
Answer: C
What is the median return for XYZ stock?
XYZ Corp. Annual Stock Prices
2003 2004 2005 2006 2007 2008
22% 5% -7% 11% 2% 11%
What is the median return for XYZ stock?
A. 7.3%.
B. 8.0%.
C. 11.0%.
Answer: B
What is the arithmetic mean return for XYZ stock?
XYZ Corp. Annual Stock Prices
2003 2004 2005 2006 2007 2008
22% 5% -7% 11% 2% 11%
What is the arithmetic mean return for XYZ stock?
A. 7.3%.
B. 8.0%.
C. 11.0%.
Answer: A
The relative frequency of the second interval is:
Return, R Frequency
-10% up to 0% 3
0% up to 10% 7
10% up to 20% 3
20% up to 30% 2
30% up to 40% 1
The relative frequency of the second interval is:
A. 10.0%.
B. 16.0%.
C. 43.8%.
Answer: C
The sample size is:
Return, R Frequency
-10% up to 0% 3
0% up to 10% 7
10% up to 20% 3
20% up to 30% 2
30% up to 40% 1
The sample size is:
A. 1.
B. 5.
C. 16.
Answer: C
The number of intervals in this frequency table is:
Return, R Frequency
-10% up to 0% 3
0% up to 10% 7
10% up to 20% 3
20% up to 30% 2
30% up to 40% 1
The number of intervals in this frequency table is:
A. 1.
B. 5.
C. 16.
Answer: B
The intervals in a frequency distribution should always have which of the following characteristics? The intervals should always:
The intervals in a frequency distribution should always have which of the following characteristics? The intervals should always:
A. be truncated.
B. be open ended.
C. be nonoverlapping.
Answer: C
In a normal distribution, the:
In a normal distribution, the:
A) mean is less than the mode.
B) median equals the mode.
C) mean is greater than the median.
Answer: B
In a negatively skewed distribution, what is the order (from lowest value to highest) for the distribution's mode, mean, and median values?
In a negatively skewed distribution, what is the order (from lowest value to highest) for the distribution's mode, mean, and median values?
A) Median, mode, mean.
B) Mode, mean, median.
C) Mean, median, mode.
Answer: C
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