1. The coefficient of determination may be used:
    1. As one of several tools of performance attribution.
    2. To gauge an investment's level of risk.
    3. To determine the degree to which two investments are correlated.
    4. None of the foregoing.
  2. Beta measures:
    1. Total Risk.
    2. Market Risk.
    3. Central tendency.
    4. Skewness.
  3. Blair Group's mean return is 8.37%. Its standard deviation is 2.45%. From the foregoing, one could infer that:
    1. Two thirds of the time, the return range would be 13.27% to 3.47%.
    2. 99% of the time, the return range would be from 8.37% to 2.45%.
    3. 95% of the time, the return range would be from 16.47% to 4.9%.
    4. None of the foregoing.
  4. With respect to skewness:
    1. It is a measure of kurtosis.
    2. It measures the degree of asymmetry of return distributions.
    3. It measures the degree of central tendency.
    4. Both a. and c.
  5. If the R2 between ? Corporation and the Russell 1000 Value is 87%, one may interpret this result as follows:
    1. One may attribute 87% of ?'s return to unsystematic risk.
    2. One may interpret 13% of ?'s return to unsystematic risk.
    3. One may interpret 87% of ?'s return to systematic risk embodied in the Russell 1000 Value.
    4. Both b. and c.


Sample Questions 21 - 26

Related Articles
  1. Investing

    Quantitative Analysis Of Hedge Funds

    Hedge fund analysis requires more than just the metrics used to analyze mutual funds.
  2. Investing

    What is Unsystematic Risk?

    Unsystematic risk is the part of an investment’s risk that is attributable to the investment itself — not to the entire economic system.
  3. Trading

    Trading With Gaussian Models Of Statistics

    The entire study of statistics originated from Gauss and allowed us to understand markets, prices and probabilities, among other applications.
  4. Investing

    Redefining Investor Risk

    Changing the way you think about time and risk can change the way you invest.
  5. Investing

    More Ways to Evaluate Portfolio Performance

    The Jensen measure is another tool investors use to include risk when measuring portfolio performance.
  6. Investing

    Calculating Annualized Total Return

    The annualized total return is the average return of an investment each year over a given time period.
  7. Investing

    Explaining Expected Return

    The expected return is a tool used to determine whether or not an investment has a positive or negative average net outcome.
  8. Investing

    The Capital Asset Pricing Model: an Overview

    CAPM helps you determine what return you deserve for putting your money at risk.
Frequently Asked Questions
  1. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  2. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  3. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
  4. What is the 1003 mortgage application form?

    Learn about the 1003 mortgage application form, what information it requires and why this form is the industry standard for ...
Trading Center