Math in Finance II

21. The intervals in a frequency distribution should always have the following characteristics? The intervals should always:

A. be truncated

B. be open-ended

C. be nonoverlapping

22. Which of the following groups best illustrates a sample?

A. The set of all estimates for Exxon Mobil's FY2015 EPS

B. The FTSE Euro top 100 as a representation of the European stock market

C. UK shares traded on 13 August 2015 also closed above 120/share on the London Stock Exchange

23. Published ratings on stocks ranging from 1{strong sell) to 5 {strong buy) are examples of which measurement scale?

A. Ordinal

B. interval

C. Nominal

24. In descriptive statistics, an example of a parameter is the:

A. median of a population

B. mean of a sample of observations

C. standard deviation of a sample of observations

25. A mutual fund has the return frequency distribution shown in the following table.

Which of the following statements is correct?

A. The relative frequency of the interval"-1.0 to +2.0" is 20%

B. The relative frequency of the interval"+2.0 to +5.0" is 23%

C. The cumulative relative frequency of the interval"+5.0 to +8.0" is 91.7%

26. Given the conditional probabilities in the table below and the unconditional probabilities P(Y = 1) =

0.3 and P (Y = 2) = 0.7, what is the expected value of X?

A. 5.0

B. 5.3

C. 5.7

27. Given the joint probability table, the expected return of Stock A is closest to:

A. 0.08

B. 0.12

C. 0.15

28. The probability that the DJIA will increase tomorrow is 2/3. The probability of an increase in the DJIA stated as odds is:

A. two-to-one

B. one-to-three

C. two-to-three

29. At a charity ball, 800 names are put into a hat. Four of the names are identical. On a random draw, what is the probability that one of these four names will be drawn?

A. 0.004

B. 0.005

C. 0.010

30. What is the conditional probability of having good stock performance in a poor economic environment?

A. 0.02

B. 0.10

C. 0.30