An empirical finance professor estimates the following regression between the return on a stock, R, and the return on S&P 500 index, Rsp:R = 5% + 1.1 Rsp + error termIf the regression R-square is 0.25, estimate the change in the return on the stock when the return on the S&P 500 index changes from 12% to 15%.
Answer(s): D
With the given regression, the change in the return on the stock when the return on the S&P 500 index changes by one unit equals the slope coefficient, 1.1. Hence, when the return on the S&P 500 index changes by 3% from 12% to 15%, the return on the stock will change by 1.1*3% = 3.3%
The lengths of time (in minutes) several underwriters took to review applications for similar insurance coverage are: 50, 230, 52 and 57. What is the median length of time required to review an application?
Answer(s): B
Order the numbers: 50,52,57,230. The median is (52 + 57)/2 = 54.5
A statistician has framed his hypothesis testing problem as:Ho: mean = 0H1: mean > 0For the given sample, he calculates the z-statistic. Then, the region of rejection at the 99% level is given by:
Answer(s): A
Since the alternative is directional and to the right, we use a right-tailed test. For this, the critical value at 99% level is +2.32. +2.32 is the value above which only 1% of the probability mass of the standard normal distribution lies). The rejection region is then given by z-statistic > +2.32.
A cumulative frequency distribution on days absent during a calendar year by employees of a manufacturing company is shown below.Days AbsentCumulative ## of Employees0 - 2603 - 5316 - 8149 - 11612 - 142How many employees were absent between 6 and 11 days?
This is found by the difference between the 6-8 class and the 12-14 class. In this case: 14 - 2 = 12.
Which of the following is the formula for the correlation between X and Y?
The correlation between two random variables X and Y is Cov(X,Y)/[(sigma_X)*(sigma_Y)].
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the correct answer to q8 is b. explanation since the mule app has a dependency, it is necessary to include project modules and dependencies to make sure the app will run successfully on the runtime on any other machine. source code of the component that the mule app is dependent of does not need to be included in the exported jar file, because the source code is not being used while executing an app. compiled code is being used instead.
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Delayed the exam until December 29th.
A and D are True
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