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:

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

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Annual Returns on ABC Mutual Fund

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

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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:

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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:

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

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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.