Examen 1. Etapa 2 Quantitative Methods

An analyst records the following six annual returns for the Halcyon Growth Fund: 6.2%, 4.1%, -2.8%, 1.5%, 5.3%, and 3.7%. The sample standard deviation of these returns is closest to:

A wealth manager oversees five client accounts valued at $62,000, $55,000, $71,000, $48,000, and $64,000. The mean absolute deviation of the account values is closest to:

The mean monthly return and standard deviation for three equity sectors are: Technology, mean 1.9% and standard deviation 1.10%; Consumer Staples, mean 0.9% and standard deviation 1.05%; Energy, mean 2.7% and standard deviation 1.40%. Based on the coefficient of variation, the riskiest sector is most likely:

The probability that Firm Alpha announces a share buyback this quarter is 35%. If it does, the probability that Firm Beta announces a buyback next quarter is 25%; if Alpha does not, that probability rises to 45%. The unconditional probability that Firm Beta announces a buyback next quarter is closest to:

A company’s quarterly revenue outcomes are: $85 million with probability 0.10, $55 million with probability 0.65, and $35 million with probability 0.25. The standard deviation of revenue is closest to:

A stock currently trades at $40. If the economy expands, it has a 35% chance of rising to $55 and a 65% chance of staying at $40 (adjusted to $42 in the analyst’s tree). If the economy contracts, it has a 55% chance of trading at $42 and a 45% chance of falling to $30. The probability of expansion is 45%. The conditional variance of the stock price given a contraction is closest to:

According to the central limit theorem, for a sufficiently large sample size the distribution of the sample mean is approximately normal. This result holds:

A population of daily returns has a known standard deviation of 12%. An analyst draws a random sample of 36 observations. The standard error of the sample mean is closest to:

A sample of 100 returns has a sample standard deviation of 15%. Because the population standard deviation is unknown, the analyst estimates the standard error of the mean. That estimate is closest to:

A sample mean return is 8.0% with a standard error of 1.5%. Assuming the sampling distribution is normal, the 95% confidence interval for the population mean is closest to:

An analyst constructs a 90% confidence interval for a mean fund return. The sample mean is 6.4% and the standard error is 0.8%. The interval is closest to:

Holding all else equal, increasing the confidence level of an interval estimate from 90% to 99% will:

A population standard deviation is known to be 20. A random sample of 25 observations yields a mean of 50. The 99% confidence interval for the population mean is closest to:

An analyst wishes to cut the standard error of the sample mean in half. If the current sample size is 50, the new sample size required (holding the population standard deviation constant) is closest to:

The standard error of the sample mean measures:

When the population variance is unknown and the sample is drawn from a normally distributed population with a small sample size, the appropriate distribution for constructing a confidence interval for the mean is the:

A sample of 16 observations from a normal population has a mean of 10.0 and a sample standard deviation of 4.0. Using a t-value of 2.131 for a 95% confidence interval (15 degrees of freedom), the interval for the population mean is closest to:

An analyst selects every 20th account from an alphabetized client list to form a sample. This sampling method is best described as:

An analyst divides a bond universe into subgroups by credit rating and then draws a random sample from each subgroup in proportion to its size. This approach is best described as:

A researcher studying long-run equity returns excludes firms that went bankrupt and no longer trade, using only companies that survived the full period. The estimate of the mean return is most likely affected by: