Mock Test 2 — Topic 1: Quantitative Methods

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Câu 33

Question 33: Jon Pelker plans to retire in six years and will require $950,000. Today, Pelker will deposit $100,000 into an interest bearing account and will deposit an additional $100,000 at the end of each of the next six years. What annual percentage return must Pelker earn to achieve his goal of $950,000 for his retirement?

(A) 8%.

(B) 10%.

(C) 18%.


Câu 36

Question 36: A sample of 250 observations has the following properties: Mean 8.6 Standard deviation 4.9 Sample kurtosis 3.0 Median 8.3 Mode 8.1 This sample most likely has:

(A) positive excess kurtosis.

(B) sample skewness greater than zero.

(C) at least one observation equal to 8.3.


Câu 42

Quesiton 42: An investor observes that a 12-month United States Treasury bill has a quoted rate of 5.3%. If the inflation premium is 4.1%, the:

(A) real-risk free rate is approximately 1.2%.

(B) nominal risk-free rate is approximately 9.4%.

(C) real-risk free rate of 5.3% incorporates the inflation premium.


Câu 46

Question 46: A simple linear regression model assumes that the model’s residuals:

(A) are positively correlated.

(B) have a constant variance.

(C) are distributed lognormally.


Câu 48

Question 48: A probability tree shows that a company’s expected earnings per share for the next period is $2.75. If three of the four potential outcomes used to construct the tree show a 20% probability of $2.00, a 25% probability of $2.60, and a 30% probability of $2.80, the remaining possible outcome is:

(A) $3.28.

(B) $3.36.

(C) $3.44.


Câu 60

Question 60: If simple random sampling is used on a population with 20 data points, the probability that any individual data point is selected first in a 10 data point sample is:

(A) 0.05.

(B) 0.10.

(C) 0.50.


Câu 63

Question 63: An analyst is evaluating sample correlation coefficients to test the hypothesis that a population correlation coefficient is equal to zero. Which of the following independent actions will increase the likelihood that she will reject the hypothesis?

(A) Increasing the sample size.

(B) Decreasing the sample correlation coefficient.

(C) Decreasing the level of significance from 10% to 5%.


Câu 69

Question 69: Which of the following statistics is used to test a hypothesis concerning the difference between the variances of two normally distributed populations?

(A) Z-statistic.

(B) F-statistic.

(C) Chi-square statistic.


Câu 73

Question 73: With bootstrap resampling, what happens to the sampled observations with every repeated draw?

(A) They are removed and not used again.

(B) They are purposefully included in future samples.

(C) They are replaced so they may be redrawn in another sample.


Câu 77

Question 77: An ANOVA table shows an explained variation of 0.0135 and an unexplained variation of 0.0640. The sum of squares regression is:

(A) 0.0135.

(B) 0.0640.

(C) 0.0775.


Câu 79

Question 79: A 5.8% preferred stock with a par value of $1,000 has an annual yield of 5.4%. A zero-coupon bond with a face value of $1,000 will mature in 3 years and has a yield of 4.7% on a semiannual-bond basis. Which security has a higher price today?

(A) The preferred stock.

(B) The zero-coupon bond.

(C) Their prices today are equal.


Câu 86

Question 86: Zach Mann is examining stock performance after classifying stocks according to their market capitalization (firm size) and P/E ratio. First, Mann ranks stocks based on market capitalization by grouping stocks into deciles. Then, for each firm size decile, he classifies stocks into P/E ratio quintiles. The total number of classifications created by Mann equals:

(A) 5.

(B) 10.

(C) 50.


Câu 90

Question 90: An investor plans to divide her funds evenly between two assets. Assets 1 and 2 have standard deviations of 10% and 30%, respectively. If the two assets are perfectly positively correlated, the standard deviation of returns of the portfolio is closest to:

(A) 10%.

(B) 15%.

(C) 20%.