Question
A.Which statement most accurately describes the Jarque-Bera test statistic for normality? The statistic is based on the sample datas first, second, and third moments. 1.
A.Which statement most accurately describes the Jarque-Bera test statistic for normality? The statistic is based on the sample datas first, second, and third moments.
1. | The larger the statistic is, the more likely that the data is distributed normally. | |
2. | The null hypothesis is a joint hypothesis that skewness and excess kurtosis are zero. |
B.You are risk averse, and you would like to invest your money in one of three plans as a stand-alone investment. If the expected returns for plans A and B, are 9% and 10%, respectively, and the standard deviations for plans A and B are .24 and .3, which plan is preferable?
1. | Plan B | |
2. | Plan A |
C.What is the theoretical standard deviation of the risk-free rate?
1. | One | |
2. | Zero | |
3. | Equal to the market |
D.Given a standard deviation of .011, a skewness of 0, excess kurtosis of 0 and sample size of 250, what is the Jarque-Bera statistic?
1. | .000 | |
2. | .011 | |
3. | .0275 |
E.If you have $200 invested in Stock A, $300 in Stock B, $250 in Stock C, and the remainder of your $1000 invested in Stock D and each stock has an expected return of 4%, 2%, 15% and 12% respectively, what is the expected return on your portfolio?
1. | 8.15% | |
2. | 10.34% | |
3. | 111.78% |
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