26 .Traditional Sample Estimator to calculate risk is best used when: i) Variance is expected to be constant between historical and future time periods. ii) Option prices on assets are readily available iii) There are appropriate number of sample intervals iv) Probabilities can be associated with each potential return or cash flow outcome

Select one:

a.

i, ii and iii

b.

i and iii

c.

iii

d.

ii and iv

27.

The speed bump is intended to protect investors Exchange traders from having their orders picked off by High Frequency Traders (HFT) traders. With the speed bump, the fastest traders can react to a change in the National Best Bid Offer (NBBO), then pick off a slower traders stale quote placed in the IEX. True of False?

Select one:

a.

True

b.

False

28.

Suppose that Investor ABC executed a sale transaction at 4.22 when the stock was quoted at 4.21 bid and 4.27 ask, and that another investors subsequent transaction executed 4.23. Calculate realized half-spread for Investor ABCs execution.

Select one:

a.

0.03

b.

0.02

c.

0.01

d.

0.05

The following table represents outcome numbers, probabilities, and associated returns for Stock A: What is the probability associated with Outcome 9 ? Select one: a. 10 b. 5 c. 15 d. 20