$1.$ You generate the distribution of daily returns for a publicly listed stock, and you find that the mean return is $0\mathrm{.}05\%$ but the median return is zero. What is the skewness character for this distribution?

A$.$

Positively skewed

B$.$

We cannot determine the skewness character of this distribution from the provided information

C$.$

No skewness

D$.$

Negatively skewed

$2.$ Suppose the recent change in Federal Reserve monetary policy causes the mean mortgage interest rate to increase, but the variance of mortgage rates does not change. What happens to the coefficient of variation $($CV$)?$

A$.$

CV does not change

B$.$

CV increases

C$.$

We do not have enough information to answer this question

D$.$

CV declines

$3.$Suppose you invest in an ETF that returns $1\%,3\%,$ and $9\%$ in the first three years. Using Equation $(4)$ in Section $5\mathrm{.}4\mathrm{.}2$ from Chapter $2$ of the book, what is the uncompounded geometric mean return over the three year period?

A$.$

$4\mathrm{.}33\%$

B$.$

$4\%$

C$.$

$3\mathrm{.}33\%$

D$.$

$3\%$

$4.$ Suppose you invest in an ETF that returns $1\%,3\%,$ and $9\%$ in the first three years. What is the sample mean return over the three year period?

A$.$

$3\mathrm{.}33\%$

B$.$

$3\%$

C$.$

$4\%$

D$.$

$4\mathrm{.}33\%$

$5.$ Suppose you want to compare the variation in returns for several different portfolios, and the assets may have different mean returns. Which statistical tool can be used to make this comparison?

A$.$

Median

B$.$

Skewness

C$.$

Coefficient of variation

D$.$

Kurtosis

$6.$ Suppose an asset has returned $3\%,6\%,0\%,$ and $8\%$ over the past four years. The geometric mean return based on this data is zero.

True

False