Question 26

Banca Hakala purchases two front row concert tickets over the Internet for $90 per seat. One month later, the rock group announces that it is dissolving due to personality conflicts and the concert that Hakala has tickets for will be the “farewell” concert. Hakala sees a chance to raise some quick cash, so she puts the tickets up for sale on the same internet site. The auction closes at $250 per ticket. After paying a 10% commission to the site on the amount of the sale and paying $10 in shipping costs, Hakala’s one-month holding period return is approximately:

A)    139%.

B)   178%.

C)   44%.

D)   144%.

Question 27

Which of the following situations is most likely to indicate an economically meaningful result? Statistical evidence of:

A)    small stocks providing beta-risk-adjusted returns that exceed large-cap stock returns over the past 15 years.

B)   a trading strategy that yields excess bond returns of 5 basis points based on research using bid prices.

C)   a technical trading strategy yielding an excess return of 5% for taxable investors.

D)   returns that exceed the risk-free rate by 400 basis points for a given commodity trading advisor.

Question 28

An analyst calculates that the mean of a sample of 200 observations is 5. The analyst wants to determine whether the calculated mean, which has a standard error of the sample statistic of 1, is significantly different from 7 at the 5% level of significance. Which of the following statements is least accurate?:

A)    The mean observation is significantly different from 7, because the calculated Z-statistic is less than the critical Z-statistic.

B)   The null hypothesis would be: H0: mean = 7.

C)   The calculated Z-statistic is: ( 5 - 7 ) / 1 = -2.

D)   The alternative hypothesis would be Ha: mean > 7.

Question 29

The odds for an event occurring are calculated by dividing:

A)    one by the probability that the event occurs.

B)   one by the probability that the event does not occur.

C)   the probability that the event does not occur by the probability that an event occurs.

D)   the probability that the event occurs by the probability that the event does not occur.

Question 30

Which of the following is least likely an underlying assumption of technical analysis?

A)    Security prices and market levels move in trends that persist for long time periods.

B)   Value and prices are determined solely by supply and demand.

C)   Shifts in supply and demand can be detected in the behavior of security prices.

D)   Markets are weak-form efficient.

[此贴子已经被作者于2008-11-8 14:14:12编辑过]

Question 26

Banca Hakala purchases two front row concert tickets over the Internet for $90 per seat. One month later, the rock group announces that it is dissolving due to personality conflicts and the concert that Hakala has tickets for will be the “farewell” concert. Hakala sees a chance to raise some quick cash, so she puts the tickets up for sale on the same internet site. The auction closes at $250 per ticket. After paying a 10% commission to the site on the amount of the sale and paying $10 in shipping costs, Hakala’s one-month holding period return is approximately:

A)    139%.

B)   178%.

C)   44%.

D)   144%.

The correct answer was D) 144%.

The holding period return is calculated as: (ending price – beginning price +/- any cash flows) / beginning price. Here, the beginning and ending prices are given. The other cash flows consist of the commission of 0.10 × $250 × 2 tickets = $50 and the shipping cost of $10 (total for both tickets).

Thus, her one-month holding period return is: [(2 × $250) – (2 × $90) – $50 − $10] / (2 × $90) = 1.44, or approximately 144%.

This question tested from Session 2, Reading 6, LOS b

Question 27

Which of the following situations is most likely to indicate an economically meaningful result? Statistical evidence of:

A)    small stocks providing beta-risk-adjusted returns that exceed large-cap stock returns over the past 15 years.

B)   a trading strategy that yields excess bond returns of 5 basis points based on research using bid prices.

C)   a technical trading strategy yielding an excess return of 5% for taxable investors.

D)   returns that exceed the risk-free rate by 400 basis points for a given commodity trading advisor.

The correct answer was A) small stocks providing beta-risk-adjusted returns that exceed large-cap stock returns over the past 15 years

The situation that appears least likely to indicate a divergence between statistical and economic significance is small stock returns exceeding large-cap stock returns on a risk-adjusted basis over a long period. A trading strategy for bonds yielding 5 basis points is likely to be eliminated when the bid-ask spread is considered. A 5% excess return for taxable investors based on a technical trading strategy is likely to be offset by taxes. A 400 basis point return over the risk-free rate for a commodity-based strategy is likely to be compensation for risk, and not true excess returns.

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

Question 28

An analyst calculates that the mean of a sample of 200 observations is 5. The analyst wants to determine whether the calculated mean, which has a standard error of the sample statistic of 1, is significantly different from 7 at the 5% level of significance. Which of the following statements is least accurate?:

A)    The mean observation is significantly different from 7, because the calculated Z-statistic is less than the critical Z-statistic.

B)   The null hypothesis would be: H0: mean = 7.

C)   The calculated Z-statistic is: ( 5 - 7 ) / 1 = -2.

D)   The alternative hypothesis would be Ha: mean > 7.

The correct answer was D)

The alternative hypothesis would be H_a: mean > 7.

The way the question is worded, this is a two tailed test.The alternative hypothesis is not H_a: M > 7 because in a two-tailed test the alternative is =, while < and > indicate one-tailed tests. A test statistic is calculated by subtracting the hypothesized parameter from the parameter that has been estimated and dividing the difference by the standard error of the sample statistic. Here, the test statistic = (sample mean – hypothesized mean) / (standard error of the sample statistic) = (5 - 7) / (1) = -2. The calculated Z is -2, while the critical value is -1.96. The calculated test statistic of -2 falls to the left of the critical Z-statistic of -1.96, and is in the rejection region. Thus, the null hypothesis is rejected and the conclusion is that the sample mean of 5 is significantly different than 7. What the negative sign shows is that the mean is less than 7; a positive sign would indicate that the mean is more than 7. The way the null hypothesis is written, it makes no difference whether the mean is more or less than 7, just that it is not 7.

This question tested from Session 3, Reading 11, LOS c, (Part 1)

Question 29

The odds for an event occurring are calculated by dividing:

A)    one by the probability that the event occurs.

B)   one by the probability that the event does not occur.

C)   the probability that the event does not occur by the probability that an event occurs.

D)   the probability that the event occurs by the probability that the event does not occur.

The correct answer was D) the probability that the event occurs by the probability that the event does not occur.

If p is the probability that an event occurs, then the odds for the event occurring are expressed as p / (1 − p), or the probability that the event occurs divided by the probability that the event does not occur. The odds against the event are expressed as the reciprocal of the odds for the event.

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

Question 30

Which of the following is least likely an underlying assumption of technical analysis?

A)    Security prices and market levels move in trends that persist for long time periods.

B)   Value and prices are determined solely by supply and demand.

C)   Shifts in supply and demand can be detected in the behavior of security prices.

D)   Markets are weak-form efficient.

The correct answer was D) Markets are weak-form efficient.

Technical analysis assumes that markets are not weak-form efficient. The other three choices are assumptions of technical analysis, along with the fourth assumption that supply and demand is driven by both rational and irrational factors.

This question tested from Session 3, Reading 12, LOS a

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