What to know
Identify the rule, formula, or decision criterion before reading the answer choices. CFA Level I distractors often use the right vocabulary with the wrong condition.
Quantitative Methods
Statistical Measures of Asset Returns practice questions
Statistical Measures of Asset Returns is part of CFA Level I Quantitative Methods. Quantitative Methods questions emphasize time value of money, probability, sampling, hypothesis testing, regression, and return statistics. Use this page to review the controlling ideas, then work through 9 questions with answer explanations and common traps.
Review the worked explanations before moving into adaptive practice. The app version can mix this topic with due reviews and weak related concepts.
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Review signal
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Quantitative Methods
Statistical Measures of Asset Returns
For the return series 2%, 4%, 4%, 9%, and 11%, the median return is:
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Statistical Measures of Asset Returns
The measure of central tendency most appropriate for averaging purchase prices when the same currency amount is invested each period is the:
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Statistical Measures of Asset Returns
A sample variance calculation uses n - 1 in the denominator primarily to:
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Statistical Measures of Asset Returns
A portfolio consists of 40% in Asset X with expected return 6% and 60% in Asset Y with expected return 11%. The weighted mean return is closest to:
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Statistical Measures of Asset Returns
For sample returns of 2%, 4%, 6%, and 8%, the sample standard deviation is closest to:
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Statistical Measures of Asset Returns
An investment has expected return of 8% and standard deviation of 12%. Its coefficient of variation is closest to:
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Statistical Measures of Asset Returns
A return distribution has a long left tail and excess kurtosis greater than zero. The distribution is best described as:
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Statistical Measures of Asset Returns
Using a target return of 0% and the sample target downside deviation formula with n - 1 in the denominator, the target downside deviation for returns of -6%, -2%, 3%, and 7% is closest to:
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Statistical Measures of Asset Returns
A covariance of returns is positive. The most accurate interpretation is that the two return series tend to:
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