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Reading 8 statistical concepts and market returns answers

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Reading 8 statistical concepts and market returns answers

Question #1 of 117Twenty Level I CFA candidates in a study group took a practice exam and want to determine the distribution of their scores. When the

Reading 8 statistical concepts and market returns answers ey grade their exams they discover that one of them skipped an ethics question and subsequently filled in the rest of his answers in the wrong places,

leaving him with a much lower score than the rest of the group. If they include this candidate's score, their distribution will most likely.A)be posi Reading 8 statistical concepts and market returns answers

tively skewed.B)have a mean that is less than its median.C)have a mode that is less than its median.ExplanationWith the low outlier included, the dist

Reading 8 statistical concepts and market returns answers

ribution will be negatively skewed. For a negatively skewed distribution, the mean is less than the median, which is less than the mode.(Study Session

Question #1 of 117Twenty Level I CFA candidates in a study group took a practice exam and want to determine the distribution of their scores. When the

Reading 8 statistical concepts and market returns answers 0.1650.11Assuming a mean of 7.2%, what is the sample standard deviation of the returns for ABC Mutual Fund for period from Year 1 to Year 10?A)9.8%.B)

7.8%.C)9.1%.ExplanationStandard deviation - (X, (X| - X)2 / (n - 1)]’/2 - (744.10 / 9)1/2 - = 9.1%.(Study Session 2. Module 8.2, LOS 8.g)G G G« G G ©Q Reading 8 statistical concepts and market returns answers

uestion #3 of 117consider the following statements about the geometric and arithmetic means as measures of central tendency. Which statement is least

Reading 8 statistical concepts and market returns answers

accurate?A)The geometric mean calculates the rate of return that would have to be earned each year toGmatch the actual, cumulative investment performa

Question #1 of 117Twenty Level I CFA candidates in a study group took a practice exam and want to determine the distribution of their scores. When the

Reading 8 statistical concepts and market returns answers ons.C)The geometric mean may be used to estimate the average return over a one-periou ume horizon because It is Che average of one-period returns.Expl

anationThe arithmetic mean may be used to estimate the average return over a one-period time horizon because it IS the average of one-period returns. Reading 8 statistical concepts and market returns answers

Both remaining statements are true.(Study Session 2, Module 8.2, LOS 8.e)Question #4 of 117In a skewed distribution, what IS the minimum proportion of

Reading 8 statistical concepts and market returns answers

observations between ♦/- two standard deviations from the mean?A)95%.©B)84%.©C)75%.©

Question #1 of 117Twenty Level I CFA candidates in a study group took a practice exam and want to determine the distribution of their scores. When the

Question #1 of 117Twenty Level I CFA candidates in a study group took a practice exam and want to determine the distribution of their scores. When the

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