Quant TE10 Test

None

• A. 0.0115
• B. 0.0648
• C. 0.0883

None

• A. 2.94%.
• B. 2.97%.
• C. 3.00%.

None

• A. 0.52.
• B. 0.27.
• C. 0.23.

A nonparametric test is most appropriate when:

• A. comparing differences between means.
• B. data are given in ranks.
• C. data meet distributional assumptions.

Q. The nominal risk-free rate is best described as the sum of the real risk-free rate and a premium for:

• A. maturity.
• B. liquidity.
• C. expected inflation.

None

• A. 48%.
• B. 24%.
• C. 16%.

Q. Grandparents are funding a newborn’s future university tuition costs, estimated at $50,000/year for four years, with the first payment due as a lump sum in 18 years. Assuming a 6% effective annual rate, the required deposit today is closest to:

• A. $60,699 .
• B. $64,341 .
• C. $68,201 .

A financial contract offers to pay €1,200 per month for five years with the first payment made immediately. Assuming an annual discount rate of 6.5%, compounded monthly the present value of the contract is closest to:

• A. €63,731 .
• B. €61,330 .
• C. €61,663 .

Q. After six months, the growth portfolio that Rayan Khan manages has outperformed its benchmark. Khan states that his odds of beating the benchmark for the year are 3 to 1. If these odds are correct, what is the probability that Khan’s portfolio will beat the benchmark for the year?

• A. 0.33
• B. 0.67
• C. 0.75

The null hypothesis is most likely to be rejected when the p-value of the test statistic:

• A. falls below a specified level of significance.
• B. is negative.
• C. exceeds a specified level of significance.