100%(4)4 out of 4 people found this document helpful
This preview shows page 81 - 84 out of 102 pages.
resistance level.support level.Question not answeredThe support level is defined to be a low price range in which buying activity is sufficient to stopthe decline in price.CFA Level I"Technical Analysis," Barry M. Sine and Robert A. StrongSection 3.2Question187 of 240An analyst collects data relating to five commonly used measures of financial leverage andinterest coverage for a randomly chosen sample of 300 firms. The data come from those firms'fiscal year 2013 annual reports. These data arebest characterized as:time series.cross sectional.longitudinal.Question not answeredData on some characteristics of companies at a single point in time are cross-sectional data.CFA Level I"Sampling and Estimation," Richard A. Defusco, Dennis W. McLeavey, Jerald E. Pinto, and David E.RunkleSection 2.3Question188 of 240A portfolio manager would like to calculate the compound rate of return on an investment.Which of the following mean returns will he most likelyuse?HarmonicArithmeticGeometricQuestion not answeredThe geometric mean return represents the growth rate or compound rate of return on aninvestment.CFA Level I"Statistical Concepts and Market Returns," Richard A. DeFusco, Dennis W. McLeavey, Jerald E.Pinto, and David E. RunkleSection 5.4.2
Question189 of 240The following information is available for a portfolio:Asset AllocationWeight (%)AssetClassReturn (%)Correlation withEquities Class (%)Asset ClassEquities4516100Mortgages251230Cash and equivalents30210The return on the portfolio is closestto:10.8%.10.0%.8.2%.Question not answeredThe portfolio return is the weighted mean return and is calculated as follows:CFA Level I“Statistical Concepts and Market Returns,” Richard A. DeFusco, Dennis W. McLeavey, Jerald E.Pinto, and David E. RunkleSection 5.4.1Question190 of 240A sample of 240 managed portfolios has a mean annual return of 0.11 and a standard deviationof returns of 0.23. The standard error of the sample mean is closestto:0.01485.0.00096.0.00710.Question not answeredFor a sample, the standard error of the mean iswhere sis the sample standarddeviation and nis the sample size), which here is: 0.23/√240 = 0.01485.CFA Level I"Sampling and Estimation," Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, and David E.RunkleSection 3.1Question191 of 240A tree diagram is most likelyused when dealing with investment problems that involve outcomesthat are:independent at each node.
unconditional at each node.mutually exclusive.Question not answeredThefollowingfiguredepictsanexampleofatreediagram: A tree diagram is a diagram with branches emanating from nodes representing either mutuallyexclusive outcomes or mutually exclusive decisions. Mutually exclusive outcomes are dependent(the occurrence of one outcome does affect the probability of occurrence of the other outcome).