Q1. The lower limit of a normal distribution is: A) negative one. B) negative infinity. C) zero.
Q2. A client will move his investment account unless the portfolio manager earns at least a 10% rate of return on his account. The rate of return for the portfolio that the portfolio manager has chosen has a normal probability distribution with an expected return of 19% and a standard deviation of 4.5%. What is the probability that the portfolio manager will keep this account? A) 0.950. B) 0.750. C) 0.977.
Q3. A portfolio manager is looking at an investment that has an expected annual return of 10% with a standard deviation of annual returns of 5%. Assuming the returns are approximately normally distributed, the probability that the return will exceed 20% in any given year is closest to: A) 0.0%. B) 4.56%. C) 2.28%.
Q4. If X has a normal distribution with μ = 100 and σ = 5, then there is approximately a 90% probability that: A) P(91.8 < X < 108.3). B) P(93.4 < X < 106.7). C) P(90.2 < X < 109.8).
Q5. Which of the following statements about a normal distribution is least accurate? A) Approximately 34% of the observations fall within plus or minus one standard deviation of the mean. B) The distribution is completely described by its mean and variance. C) Kurtosis is equal to 3.
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发表于 2009-1-9 10:26
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