bmaggie

A portfolio is equally invested in Stock A, with an expected return of 6%, and Stock B, with an expected return of 10%, and a risk-free asset with a return of 5%. The expected return on the portfolio is:

A) 7.0%.

B) 8.0%.

C) 7.4%.

bmaggie

A portfolio is equally invested in Stock A, with an expected return of 6%, and Stock B, with an expected return of 10%, and a risk-free asset with a return of 5%. The expected return on the portfolio is:

A) 7.0%.

B) 8.0%.

C) 7.4%.

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(0.333)(0.06) + (0.333)(0.10) + 0.333(0.05) = 0.07

bmaggie

Which of the following statements about the arithmetic mean is least accurate?

A) The arithmetic mean of a frequency distribution is equal to the sum of the class frequency times the midpoint of the frequency class all divided by the number of observations.

B) The arithmetic mean is the only measure of central tendency where the sum of the deviations of each observation from the mean is always zero.

C) If the distribution is skewed to the left then the mean will be greater than the median.

bmaggie

Which of the following statements about the arithmetic mean is least accurate?

A) The arithmetic mean of a frequency distribution is equal to the sum of the class frequency times the midpoint of the frequency class all divided by the number of observations.

B) The arithmetic mean is the only measure of central tendency where the sum of the deviations of each observation from the mean is always zero.

C) If the distribution is skewed to the left then the mean will be greater than the median.

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If the distribution is skewed to the left, then the mean will be less than the median.

bmaggie

Which of the following statements about the median is least accurate? It is:

A) equal to the 50th percentile.

B) equal to the mode in a normal distribution.

C) more affected by extreme values than the mean.

bmaggie

Which of the following statements about the median is least accurate? It is:

A) equal to the 50th percentile.

B) equal to the mode in a normal distribution.

C) more affected by extreme values than the mean.

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Median is less influenced by outliers since the median is computed as the “middle” observation. On the other hand, all of the data including outliers are used in computing the mean. Both remaining statements are true regarding the median.

zaestau

c

kison

xx