1) You generate the distribution of daily returns for a publicly listed stock, and you find that the mean return is 0.05% 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. Negatively skewed

D. No skewness

2) Suppose the recent change in Federal Reserve monetary policy causes the risk-free rate to increase, but the distribution of returns for a stock portfolio does not change. What happens to the Sharpe ratio for the portfolio?

A. We do not have enough information to answer this question

B. Sharpe ratio declines

C. Sharpe ratio increases

D. Sharpe ratio does not change

3) Over the past few decays, quality control experts have developed the six-sigma concept. In one version of this concept, firms adopt management procedures to decrease the variation in manufactured products and reduce defects. Based on Chebyshev's inequality, what is the defect rate if non-defective products fall within the six sigma of mean quality?

A. 1/36

B. 1/6

C. 1/100

D. 1/20

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

A. 4.33%

B. 4%

C. 3%

D. 3.33%

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. Excess kurtosis

B. Semivariance

C. Coefficient of variation

D. Sharpe ratio

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.

A. True

B. False