Statistical Concepts And Market Returns

Question 1

Distinguish between descriptive statistics and inferential statistics

Answer 1

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Question 2

Distinguish between a population and a sample

Answer 2

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Question 3

Distinguish among the types of measurement scales

Answer 3

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Question 4

Define a parameter

Answer 4

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Question 5

Define a sample statistic

Answer 5

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Question 6

Define a frequency distribution

Answer 6

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Question 7

Calc, interpret relative frequencies, given a frequency distribution

Answer 7

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Question 8

Calc, interpret cumulative frequencies, given a frequency distribution

Answer 8

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Question 9

Describe properties of a data set presented as a histogram

Answer 9

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Question 10

Describe properties of a data set presented as a frequency polygon

Answer 10

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Question 11

Measures of Central Tendency

Answer 11

Population mean

Sample Mean

Arithmetic Mean

Weighted average or mean

Geometric Mean

Harmonic Mean

Median

Mode

Question 12

Calc, interpret Population means

Answer 12

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Question 13

Calc, interpret Sample Mean

Answer 13

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Question 14

Calc, interpret Arithmetic mean

Answer 14

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Question 15

Calc, interpret Weighted Average or Mean

Answer 15

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Question 16

Calc, interpret Geometric mean

Answer 16

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Question 17

Calc, interpret Harmonic Mean

Answer 17

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Question 18

Calc, interpret Median

Answer 18

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Question 19

Calc, interpret Mode

Answer 19

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Question 20

Calc, interpret quartiles

Answer 20

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Question 21

Calc, interpret deciles

Answer 21

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Question 22

Calc, interpret quintiles

Answer 22

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Question 23

Calc, interpret percentiles

Answer 23

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Question 24

Calc, interpret a range and a mean absolute deviation

Answer 24

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Question 25

Calc, interpret the variance and standard deviation of a population of a sample

Answer 25

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Question 26

Calc, interpret the proportion of observations falling within a specified number of standard deviations of the mean using Chebyshev’s inequality.

Answer 26

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Question 27

Calculate and interpret the coefficient of variation

Answer 27

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Question 28

Calc, interpret the Sharpe Ratio

Answer 28

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Question 29

Explain skewness and the meaning of a positively or negatively skewed return distribution

Answer 29

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Question 30

Describe the relative locations of the mean, median, mode for a unimodal, nonsymmetrical distribution

Answer 30

Unimodal Distribution: For the positively skewed unimodal distribution, the mode is less than the median, which is less than the mean.

Question 31

Explain measures of sample skewness

Answer 31

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Question 32

Explain measures of Kurtosis

Answer 32

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Question 33

Arithmetic means when analyzing investments

Answer 33

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Question 34

Geometric means when analyzing investment returns.

Answer 34

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Question 35

Compre the use of arithmetic and geometric means when analyzing investment returns.

Answer 35

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