Reading 7: Statistical Concepts and Market Returns - LOS d black, style

cfaedu

11、Given the following annual returns, what are the median and mode returns, respectively?

1995			1996	1997	1998		1999
15%			2%	5%	-7%		0%
		Median				Mode

 

A)           2.00%             no mode exists

B)           2.00%                       3.00%

C)        no median exists             3.00%

D)        no median exists         no mode exists

12、Given the following annual returns, what are the geometric and arithmetic mean returns, respectively?

2002			2003	2004	2005		2006
15%			2%	5%	-7%		0%
		Geometric Mean				Arithmetic Mean

 

A)              2.75%                5.80%

B)              2.75%                3.00%

C)              1.45%                      5.80%

D)              1.45%                      3.00%

13、An investor has a portfolio with 10 percent cash, 30 percent bonds, and 60 percent stock. Last year, the cash returns was 2.0 percent, the bonds’ return was 9.5 percent, and the stocks’ return was –32.5 percent. What was the return on the investor’s portfolio?

A)   –7.00%.

B)   –33.33%.

C)   +33.33%.

D)   –16.45%.

14、An investor has a $12,000 portfolio consisting of $7,000 in stock A with an expected return of 20 percent and $5,000 in stock B with an expected return of 10 percent. What is the investor’s expected return on the portfolio?

A)   15.0%.

B)   12.2%.

C)   15.8%.

D)   7.9%.

15、What is the compound annual growth rate for stock A which has annual returns of 5.60 percent, 22.67 percent, and –5.23 percent?

A)   7.08%.

B)   6.00%.

C)   8.72%.

D)   17.44%.

cfaedu

答案和详解如下：

11、Given the following annual returns, what are the median and mode returns, respectively?

1995			1996	1997	1998		1999
15%			2%	5%	-7%		0%
		Median				Mode

 

A)           2.00%             no mode exists

B)           2.00%                       3.00%

C)        no median exists             3.00%

D)        no median exists         no mode exists

The correct answer was A)

Median: Arrange the return values from largest to smallest and take the middle value: (7%), 0%, 2%, 5%, 15%. The middle value is 2.00%. Mode: The mode is defined as the value that most often shows up in a distribution. Because no return value shows up more than once, this distribution has no mode.

12、Given the following annual returns, what are the geometric and arithmetic mean returns, respectively?

2002			2003	2004	2005		2006
15%			2%	5%	-7%		0%
		Geometric Mean				Arithmetic Mean

 

A)              2.75%                5.80%

B)              2.75%                3.00%

C)              1.45%                      5.80%

D)              1.45%                      3.00%

The correct answer was B)

Geometric Mean: (1.15 x 1.02 x 1.05 x 0.93 x 1.0)^1/5 –1 = 1.1454^1/5 –1 = 2.75%
Arithmetic Mean: (15% + 2% + 5% - 7% + 0%) / 5 = 3.00%

13、An investor has a portfolio with 10 percent cash, 30 percent bonds, and 60 percent stock. Last year, the cash returns was 2.0 percent, the bonds’ return was 9.5 percent, and the stocks’ return was –32.5 percent. What was the return on the investor’s portfolio?

A)   –7.00%.

B)   –33.33%.

C)   +33.33%.

D)   –16.45%.

The correct answer was D)

Find the weighted mean. (0.10)(0.02) + (0.30)(0.095) + (0.60)(–0.325) = –16.45%

14、An investor has a $12,000 portfolio consisting of $7,000 in stock A with an expected return of 20 percent and $5,000 in stock B with an expected return of 10 percent. What is the investor’s expected return on the portfolio?

A)   15.0%.

B)   12.2%.

C)   15.8%.

D)   7.9%.

The correct answer was C)

Find the weighted mean where the weights equal the proportion of $12,000. (7000/12000)(0.20) + (5000/12000)(0.10) = 15.8%

15、What is the compound annual growth rate for stock A which has annual returns of 5.60 percent, 22.67 percent, and –5.23 percent?

A)   7.08%.

B)   6.00%.

C)   8.72%.

D)   17.44%.

The correct answer was A)    

Compound annual growth rate is the geometric mean. (1.056 × 1.2267 × 0.9477)^1/3 – 1 = 7.08%

jacky_z

thanks

zaestau

 cc