Statistical Concepts and Market Returns II by Edu Pristine

Author of lecture Statistical Concepts and Market Returns II

Edu Pristine

Customer reviews

Excerpts from the accompanying material

... arithmetic mean, weighted average or mean (including a portfolio return viewed as a weighted mean), geometric mean, harmonic mean, median, and ...

... " Measures of Central: Tendency summarize the location on which the data are centered " Population Mean: calculated as  Where there are ...

... where there are n observations in the sample and each observation is Xi, i ...

... no mode. " Median: calculated as the middle observation in a group that has been ordered in either ascending or descending order .  In an odd-numbered group this is the (n+1)/2 position. In an even numbered group it is the average of the ...

... Xi, and the weight associated with each observation is wi i =1, 2, &n. If wi = 1/n, then this is the sample mean. If wi is the probability of Xi occurring then this weighted mean is the expected value of the random variable X. ...

... " Geometric Mean: calculated as  Where there are n observations and each observation is Xi.  Compound Annual Growth Rate(CAGR): It s the geometric mean of there turns. Example: The returns on the equity portfolio had been 10%, 15% and 20% from ...

... The arithmetic mean return for the same period was 6 percent. If the market value of the portfolio at the beginning of 1995 was $100,000, the market value of the portfolio at the end of 2001 was closest to: A.$140,710 ...

... $140,710 " Solution:  Identify what you are being asked for Portfolio Ending value P12/31/2001 Given the following: " Portfolio Beginning value = P1/1/1995 =$100,000 " Geometric mean return = 5%, Arithmetic mean return = 6% " Number of periods = 7, Non-dividend ...

... sum of the deviations of each observation from the mean is always zero. B. All interval data sets have an arithmetic mean. C. If the distribution is skewed to the left then the mean will be greater than the ...

... then the mean will be greater ...

... geometric mean return for RSB s common stock A. ...

... Which of the following is/are true? I. There are as many values above the mode as below it. II. The sum of the differences between the observations in a sample and the mode of the sample equals zero. ...

... likely that the observed data contain large errors and hence, it must be re-examined. (I) holds for the median not the mode i.e. there are as many values above the median as below it. (I I) holds for the mean i.e. the sum of the differences between the observations in a sample and the mean of the sample equals ...

... to high and selecting the middle value? A. Geometric ...

... how the median is found. Make sure ...

... Which of the following is/are true? I. There are as many values above the median as below it. II. The sum of the differences between the observations in a sample and the median of the sample equals zero. III. ...

... as many values above the median as below it. ...

... You are examining a portfolio composed of 10% money- market investments, 30% bonds, and 60% stocks. Last year, the return on the money-market investments was 4%; the return on bonds was ...

... the percentage weight in the portfolio of the ith asset, and Xi is the investment return of the ith asset. Here, we get a weighted mean of 0.10 * 0.04 + 0.30 * 0.06 + 0.60 * 0.07 = 6.40%. ...

... 15%, 28%, 4%, -31%, 22%, 9%, 28%, -23%, 2%, 11%, -13%, -7%, 17%, 21%, - 22%. What is the 40 th percentile of this array of data? A. 4.6% B. 6.4% C. 6.6% Below ...

... are 4% & 5%, so the 40 th percentile is 4 + ...

... and a mean absolute deviation and 2. The variance and standard deviation of a population and of a ...