Reading 7: Statistical Concepts and Market Returns - LOS e style, white, points, returns, following

mayanfang1

Q6. The following data points are observed returns.

4.2%, 6.8%, 7.0%, 10.9%, 11.6%, 14.4%, 17.0%, 19.0%, 22.5%, 28.1%

What return lies at the seventh decile (70% of returns lie below this return)?

A)   17.0%.

B)   18.4%.

C)   19.0%.

mayanfang1

答案和详解如下：

Q6. The following data points are observed returns.

4.2%, 6.8%, 7.0%, 10.9%, 11.6%, 14.4%, 17.0%, 19.0%, 22.5%, 28.1%

What return lies at the seventh decile (70% of returns lie below this return)?

A)   17.0%.

B)   18.4%.

C)   19.0%.

Correct answer is B)         

The formula for the seventh decile is L_y = (n + 1)(7 / 10) = 7.70 or between the seventh and eighth return from the left. The seventh return is 17%, while the eighth return is 19%. Interpolating, we find that the seventh decile is 17% + 0.7(19% – 17%) = 18.4%.

jacky_z

thanks

gracesun

thanks a lot

zeraeh

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saint_zhu

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dullmul

answers

hjl2000

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connie198226

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kgbvvsscia

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