CFA L1 2022 Question Bank — QA [B] Qns 1-93

If Stock X's expected return is 30% and its expected standard deviation is 5%, Stock X's expected coefficient of variation is:

Assume that the following returns are a sample of annual returns for firms in the clothing industry.

Annual Returns on ABC Mutual Fund

Given the following annual returns, what are the geometric and arithmetic mean returns, respectively?

Trina Romel, mutual fund manager, is taking over a poor-performing fund from a colleague. Romel wants to calculate the return on the portfolio. Over the last five years, the fund's annual percentage returns were: 25, 15, 12, -8, and –14. Determine if the geometric return of the fund will be less than or greater than the arithmetic return and calculate the fund's geometric return:

Michael Philizaire decides to calculate the geometric average of the appreciation/deprecation of his home over the last five years. The geometric return is closest to:

In a negatively skewed distribution, what is the order (from lowest value to highest) for the distribution's mode, mean, a

An analyst is asked to calculate standard deviation using monthly returns over the last five years. These data are best described as:

• A)cross-sectional data.

• B)unstructured data.

• C)time series data.

A frequency polygon is best suited to summarizing:

• A)underlying trends over time.

• B)unstructured textual data.

• C)a distribution of numerical data.

A 5% trimmed mean ignores the:

• A)highest and lowest 5% of observations.

• B)highest and lowest 2.5% of observations.

• C)lowest 5% of observations.