John Cupp, CFA, has several hundred clients. The values of the portfolios Cupp manages are approximately normally distributed with a mean of $ 800000 and a standard deviation of $ 250000. The probability of a randomly selected portfolio being in excess of $1000000 is :()
A. 0.3773.
B. 0.6227.
C. 0.2119.
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A stock priced at $10 has a 60 percent probability of moving up and a 40 percent probability of moving down. If it moves up, it increases by a factor of 1.06. If it moves down, it decreases by a factor of 1/1.06. What is the expected stock price after two successive periods()
A. $10.03.
B. $11.24.
C. $10.27.
The sample mean is a consistent estimator of the population mean because the:()
A. expected value of the sample mean is equal to the population mean.
B. sampling distribution of the sample mean has the smallest variance of any other unbiased estimators of the population mean.
C. sample mean provides a more accurate estimate of the population mean as the sample size increases.
If a smooth curve is to represent a probability density function, what two requirements must be satisfied The :()
A. area under the curve must be zero and the curve must not fall below the horizontal axis.
B. area under the curve must be one and the curve must not rise above the horizontal axis.
C. total area under the curve must be one and the curve must not fall below the horizontal axis.
Which of the following random variables would be most likely to follow a discrete uniform distribution()
A. The outcome of the roll of two standard, six - sided dice where X is the sum of the numbers facing up.
B. The number of heads on the flip of two coins.
C. The outcome of a roll of a standard, six - sided die where X equals the number facing up on the die.