R7 Statistical Concepts and Market Returns

1. Which of the following characteristics should not belong to

the intervals in a frequency distribution.

have no set width.

closed ended.

overlapping.

2. Given the following frequency distribution

According to the above table, the number of intervals is:

0.
B

4.

20.

3. Given the following frequency distribution

According to the above table, calculate the sample size.

4.

6.

14.

4. Given the following frequency distribution

According to the above table ,calculate the relative frequency

of the third interval.

12.5%.

30.0%.

29%.

5. Annual return of the stock of Stone Company are showing

below.
According to the above table, calculate the arithmetic mean

return for Stone's stock.

5.17%.

6.00%.

6.77%.

6. The table below shows the monthly stock returns of Ivy

Corp.

According to the above table, calculate the median stock

return for Ivy Corp.?

7.7%.

8.0%.

C
12.0%.

7. The table below shows the monthly stock returns of Ivy

Corp.

According to the above table,calculate the mode of Ivy Corp.

returns?

7.7%.

8.0%.

12.0%.

8. The table below shows the monthly stock returns of Ivy

Corp.
According to the above table , calculate the range for Ivy Corp.

returns?

7.0%.

15.0%.

25.0%.

9. The table below shows the monthly stock returns of Ivy

Corp.

According to the above table ,calculate the mean absolute

deviation for Ivy Corp. returns?

15.0%.

7.0%.

C
25.0%.

10. The table below shows the monthly stock returns of Ivy

Corp.

According to the above table ，Calculate the population

variance for Ivy Corp. returns, assuming the population has 6

observations?

8.01%.

77.1%2.

64.2%2.

11. The table below shows the monthly stock returns of Ivy

Corp.
According to the above table , calculate the population

standard deviation for Ivy Corp. returns, assuming the

population has 6 observations?

8.78%.

8.01%.

48.06%.

12. The table below shows part of the monthly stock returns of

Ivy Corp.

Calculate the sample variance for Ivy Corp. returns, assuming

above table inclues all samples.

A

8.78%.

64.2%2.

77.1%2.

13. The table below shows part of the monthly stock returns of

Ivy Corp.

Calculate the sample standard deviation for Ivy Corp. returns,

assuming above tabe inclues all samples??

8.78%.

8.01%.

77.1%2.
14. According to Chebyshev’s Inequality, what is the minimum

percentage of the observations from a positive skewed

distribution that will be within ±3.5 standard deviations of the

mean?

8.2%.

71.43%.

91.8%.

15. The quarterly returns for FTSE 100 over year 2016 were 8%,

-5%, 3% and 1%. What is the quarterly arithmetic mean return

for FTSE 100?

1.75%.

1.64%.

2%.
16. The quarterly returns for FTSE 100 over the year 2016 were

8%, -5%, 3% and 1%. What is the quarterly geometric mean

return for FTSE 100?

1.64%.

1.75%.

Not available, as negative observation exits.

17. Which of the following descriptions about  leptokurtic is

most approriate?

A distribution of returns that has a more extremely large and

small deviations from the mean is positively skewed.

A distribution of returns that has more extremely large and

small deviations from the mean has positive excess kurtosis.

A distribution of returns that has more extremely large and

small deviations from the mean has negative excess kurtosis.

18. Molly is studying the return distribution of firm A's stock.

She finds that the median of stock returns is smaller than the

mean. Which of the following statements about the return

distribution is correct? 

The return distribution is positively skewed.

The return distribution is negatively skewed.

The return distribution has a positive excess kurtosis.

19. The returns of the an investor'investment over past 3years

are 7%， 8%，9% Calculate the harmonic mean of the

return. .

8.0.

7.92.

2.64.
20. If the observations in a data set have different valus, is the

harmonic mean for that data set less than that data set's:

geometric mean?

arithmetic mean?

No

No

Yes

Yes

No

Yes

21. For any distribution, what is the minimum percentage that

will lie within ±2 standard deviations of the mean?

25%

50%

C
75%

22. An analyst gathered a data set and all observations in

the data set have different values. Typically,

the arithmetic mean for data set is:

smaller than harmonic mean and geometirc mean.

larger than harmonic mean and geometirc mean.

smaller than harmonic mean but larger than geometirc mean.

23. The characteristic of a return distribution is frequent small

gains and several extreme losses. Which of the following

options is correct?

The distribution has a positive skewness, and the mean is

greater than the median.

The distribution has a negative skewness, and the mean is

smaller than the median.

C
The distribution has a positive skewness, and the mean is

smaller than the median.

24. Tim wants to invest a portfolio for his company. He

gathered two portfolios' return distribution over the same

period:

Portfolio A: Skewness=-1.5, Kurtosis=3.5,

Portfolio B: Skewness=1.5, Kurtosis=2.5.

Tim says:

Statement 1: the distribution of Portfolio A is more peaked

than Portfolio B;

Statement 2: the distribution of Portfolio B has a long left-side

tail and that of Portfolio A has a long right-side tail. 

Which one is most correctly?

Statement 1.

Statment 2.

C
Both.

25. When determining the relative degree of variability of

different data sets if those data sets have different means or

different units of measurement, which of the following

parameters is  most suitable parameter?

Coefficient of variation.

Standard deviation.

Mean.

26. Adonis, an analyst from an investment

company, recently gathered the following information:

Which of the following statements is correct?

A
Portfolio 1 has the largest Sharpe ratio therefore perform the

best.

Portfolio 2 has the largest Sharpe ratio therefore perform the

best.

Portfolio 3 has the smallest Sharpe ratio therefore perform the

best.

27. Abbott, an analyst from an investment company, recently

collected some information on a portfolio’s performance over

the year. The mean annual return of the portfolio is 12%, the

stanard deviation of return is 15%, the portfolio beta is 1.5,

and the risk free rate is 6%. Which of the following is most

appropriate?
A.

The coefficient of variation is 0.80 and Sharpe ratio is 4.

The coefficient of variation is 1.25 and Sharpe ratio is 0.8.

The coefficient of variation is 1.25 and Sharpe ratio is 0.4

28. Which of the following statements is most correct regard

to sample?

all the organisms of the same group or species

a subset of a population

a characteristic of a population

29. Which is the following measurement scales is weakest?

nominal

ordinal

interval

30. Which of the following statement is incorrect regard to

parameter?

a characteristic of a sample
B

including median of a population.

a characteristic of a population

31. The distribution of students’ height in class is as follows:

The relative frequency of height interval "170 ~175" is :

24%.
B

10%.

15%.

32. Peter invests a fund and the return of each year is as

follows:

Between 1.03% ≤ x  <4.77%,the cumulative relative frequency

will be:

0.083.

1.
C

0.833.

33. From the picture,the frequency of return's mode

is: 

21

7
34. From the picture, the frequency of return's median is:

35. Return is positive refers to yen appreciation and negative

refers to yen depreciation. Compared to yen depreciation, yen

appreciation is:
A

more frequent

less frequent.

the same frequent.

36. Alex bought fund A and fund C in 2014. In 2015, he bought

fund B:
which of the following statements is correct?

The median return of fund A is 6.5

The median return of fund B is 3

The median return of fund C is 1.3

37. There are four equities in a fund:

The  return of this fund is equal to:

A
3.7%.

5.9%.

4.45%.

38. Paul bought a fund and the return each year is shown

below:

The fund's geometric mean will be:

8.2%.

1.48%.

C
3.2%.

39. Peter bought a security for $55 in year 1, $60 in year 2, $64

in year 3, $70 in year 4. The harmonic mean of the price will

be:

61.77.

25.

37.04

40. The number of 1-10,the fourth quintile number will be:

8.

8.8.

9.

41. When it refers to the number of 1-10, the mean absolute

deviation will be:

A

2.5.

3.6.

4.7

42.

Having collected mean returns for the three stocks, the analyst

is now concerned about evaluating dispersion.Which of the

following statements is least accurate?

Based on the variance,Stock A has the highest dispersion.

Based on the range,Stock C has the lowest dispersion.

C

Based on the mean absolute deviation(MAD),Stock B has the

highest dispersion.

43. During the 2008-2017 period,totaling 120 mean monthly

returns and standard deviation of returns on the S&P 500

index were 1.5% and 6% respectively.Based on Chebyshev’s

inequality, the minimum number of the 120 monthly returns

that fall into the range of -10.5% to 13.5% is closet to:

45.

60.

90.

44.

Given the table above, based on the coefficient of

variation,which market is least risky?

A

Hong Kong

Australia

Italy

45.

An analyst has observed that the risk free rate is 1.5%. Given

the table above, based on the Sharpe ratio, which of the

following is the best choice for clients?

S&P 500 index

Russell 2000 index

PRFDX
46.

An analyst has observed that the risk free rate is 2%. Given the

table above, based on the Sharpe ratio, which of the following

is a optimal stock for clients? 

Stock A

Stock B

Stock C

47 .
Given the table above, which of the following statements is

least accurate regarding to the skewness of Stock C?

The return distribution has a few extreme gains.

The return distribution has a few extreme losses.

The mean return is larger than its median.

48 .

Given the table above, compared with a normal distribution,

the distribution of returns for Stock A is most likely to:

have the same kurtosis.

be more peaked.

C
have thinner tails.

49 . Stock A has a skewness of -1.58 while Stock B has a

skewness of 3.15.Which of the following statements is least

accurate?

The mean is larger than the mode for Stock A.

The mode is larger than the mean for Stock A.

The median is less than the mean for Stock B.

50 . Which of the following statements is most accurate?

The arithmetic mean is appropriate to estimate the average

returns over multiple periods.

The geometric mean is appropriate for assessing past

performance.
C

The geometric mean is always greater than or equal to

arithmetic mean.