Question 21

The following stream of cash flows will occur at the end of the next five years.

At a discount rate of 12%, the present value of this cash flow stream is closest to:

A)    $58,165.

B)   $36,965.

C)   $65,144.

D)   $33,004.

Question 22

The “up-move factor” in a binomial tree is best described as:

A)    the probability that the variable increases in any period.

B)   one plus the percentage change in the variable in each period.

C)   the increase in the value of the variable in the next period.

D)   one minus the “down-move factor” for the binomial tree.

Question 23

In a standard deck of playing cards, there are 52 cards. Of these cards, there are 2 red kings. If someone randomly selects 2 cards from the deck, the probability of selecting exactly one red king is the joint probability of a red king on the first draw and not on the second draw [(2/52) × (50/51)] plus the joint probability of a red king on the second draw and not the first draw [(50/52) × (2/51)]. This probability is best described as a(n):

A)    empirical probability.

B)   subjective probability.

C)   a priori probability.

D)   Bayes probability.

Question 24

Assume an investor purchases a stock for $50. One year later, the stock is worth $60. After one more year, the stock price has fallen to the original price of $50. Calculate the continuously compounded return for year 1 and year 2.

       Year 1     Year 2

A)    18.23%        16.67%

B)   18.23%        -18.23%

C)   -18.23%       16.67%

D)   -18.23%       -18.23%

Question 25

Brenda Conroy, CFA, is researching whether market share is positively correlated with return on equity among specialty retailers. Conroy selects five companies at random from each of ten groups of specialty retailers (auto parts stores, shoe stores, music stores, etc.). Conroy ranks the sampled companies by market share and by return on equity and conducts a test of the correlation between these firms’ market share ranks and their return-on-equity ranks. Conroy’s sampling technique and the type of statistical test she is performing are most accurately described as:

Sampling Technique               Type of test

A)    simple random sampling                 nonparametric test

B)   simple random sampling                 parametric test

C)   stratified random sampling          nonparametric test

D)   stratified random sampling          parametric test

[此贴子已经被作者于2008-11-8 9:54:12编辑过]

答案和详解如下！

Question 21

The following stream of cash flows will occur at the end of the next five years.

At a discount rate of 12%, the present value of this cash flow stream is closest to:

A)    $58,165.

B)   $36,965.

C)   $65,144.

D)   $33,004.

The correct answer was D) $33,004.

N = 1; I/Y = 12; PMT = 0; FV = -2,000; CPT → PV = -1,785.71.
N = 2; I/Y = 12; PMT = 0; FV = -3,000; CPT → PV = -2,391.58.
N = 3; I/Y = 12; PMT = 0; FV = 6,000; CPT → PV = 4,270.68.
N = 4; I/Y = 12; PMT = 0; FV = 25,000; CPT → PV = 15,887.95.
N = 5; I/Y = 12; PMT = 0; FV = 30,000; CPT → PV = 17,022.81.
Sum the cash flows: $33,004.15.

Note: If you want to use your calculator's NPV function to solve this problem, you need to enter zero as the initial cash flow (CF₀). If you enter -2,000 as CF₀, all your cash flows will be one period too soon and you will get one of the wrong answers.

This question tested from Session 2, Reading 5, LOS d, (Part 4)

Question 22

The “up-move factor” in a binomial tree is best described as:

A)    the probability that the variable increases in any period.

B)   one plus the percentage change in the variable in each period.

C)   the increase in the value of the variable in the next period.

D)   one minus the “down-move factor” for the binomial tree.

The correct answer was B) one plus the percentage change in the variable in each period.

A binomial tree is constructed assuming the value of a variable will either increase or decrease by a fixed percentage in each period. The “up-move factor” equals one plus the percentage change and the “down-move factor” is equal to one divided by the up-move factor.

This question tested from Session 3, Reading 9, LOS d, (Part 1)

Question 23

In a standard deck of playing cards, there are 52 cards. Of these cards, there are 2 red kings. If someone randomly selects 2 cards from the deck, the probability of selecting exactly one red king is the joint probability of a red king on the first draw and not on the second draw [(2/52) × (50/51)] plus the joint probability of a red king on the second draw and not the first draw [(50/52) × (2/51)]. This probability is best described as a(n):

A)    empirical probability.

B)   subjective probability.

C)   a priori probability.

D)   Bayes probability.

The correct answer was C) a priori probability

This is an a priori probability because it is known in advance by reasoning, without performing any experiments or making any estimates. The probability of drawing exactly one red king in two draws is equal to:

(Prob. of 1st draw being successful)(Prob. of 2nd draw being unsuccessful) + (Prob. of 1st draw being unsuccessful)(Prob. of 2nd draw being successful)

= (2/52)(50/51) + (50/52)(2/51) 

= 0.03771 + 0.03771 = .07541 or 7.541%

This question tested from Session 2, Reading 8, LOS b

Question 24

Assume an investor purchases a stock for $50. One year later, the stock is worth $60. After one more year, the stock price has fallen to the original price of $50. Calculate the continuously compounded return for year 1 and year 2.

       Year 1     Year 2

A)    18.23%        16.67%

B)   18.23%        -18.23%

C)   -18.23%       16.67%

D)   -18.23%       -18.23%

The correct answer was B) 18.23% -18.23%

Given a holding period return of R, the continuously compounded rate of return is: ln(1 + R) = ln(Price₁/Price₀). Here, if the stock price increases to $60, r = ln(60/50) = 0.18232, or 18.23%.

Note: Calculator keystrokes are as follows. First, obtain the result of 60/50, or 1. On the TI BA II Plus, enter 1.20 and then click on LN. On the HP12C, 1.2 [ENTER] g [LN] (the LN appears in blue on the %T key).

The return for year 2 is ln(50/60), or ln(0.833) = negative 18.23%.

This question tested from Session 3, Reading 9, LOS k, (Part 2)

Question 25

Brenda Conroy, CFA, is researching whether market share is positively correlated with return on equity among specialty retailers. Conroy selects five companies at random from each of ten groups of specialty retailers (auto parts stores, shoe stores, music stores, etc.). Conroy ranks the sampled companies by market share and by return on equity and conducts a test of the correlation between these firms’ market share ranks and their return-on-equity ranks. Conroy’s sampling technique and the type of statistical test she is performing are most accurately described as:

Sampling Technique               Type of test

A)    simple random sampling                 nonparametric test

B)   simple random sampling                 parametric test

C)   stratified random sampling          nonparametric test

D)   stratified random sampling          parametric test

The correct answer was C)  stratified random sampling     nonparametric test

Conroy is using stratified random sampling to ensure that each category is represented in the sample. A test that ranks the data in two sets and examines the correlations between ranks is an example of a nonparametric test.

This question tested from Session 3, Reading 11, LOS g

good

good

thx

看看答案

good luck everyone