Reference no: EM132713012

Problem 1: Stock PVQ has an annual mean return of 16% and a standard deviation of 42%. What is the smallest possible loss in the next week with a probability of 2.5%?

A) -23.96%

B) -13.66%

C) -11.11%

D) -16.42%

Problem 2:  The probability that a standard normal random variable is either less than -1.96 or greater than +1.96 is approximately

A) 2.5%

B) 5.0%

C) 10%

D) 31.74%

Problem 3: An investor has 1,000 HKG stocks. The opening value is $31 per share. This individual makes net contributions of $1,000 during the period. The ending portfolio value is $34,000. What is the total return on these shares?

A) 6.35%

B) 6.45%

C) 9.52%

D) 9.67%

Problem 4: A knowledgeable financial advisor recommends that you stop buying common stocks and invest in short-term interest-bearing paper. What is the most likely point in the equity cycle at that point in time?

A) Equity cycle peak

B) Expansion phase

C) Stock market trough

D) Contraction phase

Problem 5: Which of the following are types of event-driven funds?

I. Merger or risk arbitrage

II. Distressed securities funds

III. High-yield funds

IV. Global macro funds

V. Emerging market funds

VI. Managed futures funds

A) I, II, III

B) I, II, III and IV

C) II, IV, V and VI

D) III, IV, V and VI