Question 43 of 50

Which of the following best describes a discrete random variable?

For a continuous uniform distribution defined between a lower limit a and an upper limit b, what is the probability that the random variable X takes on a value greater than b?

In a binomial distribution with n trials and probability of success p, what is the expected number of successes?

Which of the following is a key property of the normal distribution?

A portfolio manager wants to determine the probability that a portfolio's return will fall below a minimum acceptable level. Which measure should be maximized to minimize this probability?

How is a z-value calculated for a random variable X from a normal population?

For a lognormal distribution, which of the following statements is true regarding the possible values of the random variable?

What is the 95 percent confidence interval for a standard normal random variable?

If an investor has a holding period return of 20 percent over one year, what is the continuously compounded annual rate of return?

The Student's t-distribution approaches the standard normal distribution as:

Which of the following parameters is necessary to completely describe a multivariate normal distribution for the returns of n assets?

A chi-square distribution is bounded from below by:

Monte Carlo simulation is best described as a technique that:

If the probability of success in a single trial is 0.40, what is the probability of exactly 2 successes in 5 independent trials (Binomial distribution)?

What is the probability that a continuous uniform random variable defined between 2 and 10 takes on a value of exactly 5?

An analyst estimates the mean return of a stock to be 10 percent with a standard deviation of 20 percent. If returns are normally distributed, the 90 percent confidence interval for the return is:

Which of the following is a property of the standard normal distribution?

Shortfall risk is best defined as:

If an asset's price today is 100 and it increases to 110 over one year, what is the continuously compounded annual return?

Compared to the normal distribution, the Student's t-distribution has:

The F-distribution is defined by:

If a cumulative distribution function F(x) represents the probability that X is less than or equal to x, how is the probability that X lies between a and b calculated?

Which distribution is typically used to test the equality of variances of two normal populations?

A stock has an expected return of 12 percent and a standard deviation of 15 percent. If the threshold return is 2 percent, what is the Safety-First Ratio?

In a continuous uniform distribution ranging from 0 to 20, what is the probability that the random variable falls between 5 and 15?

What is the variance of a binomial random variable with n=10 trials and probability of success p=0.5?

When using Roy's Safety-First Criterion to choose among portfolios, which portfolio is preferred?

Which of the following is a characteristic of the lognormal distribution?

For a standard normal distribution, what is the probability that a value lies to the left of 0?

If the continuously compounded annual rate of return is 10 percent, what is the holding period return after 2 years?

What is a limitation of Monte Carlo simulation?

Which distribution describes the sum of squared values of n independent standard normal random variables?

In a binomial experiment with 1 trial, the distribution is called a:

For a normal distribution with mean 50 and standard deviation 5, what is the z-score of an observation of 60?

If a cumulative distribution function F(x) = 0.60, what does this indicate?

With 10 degrees of freedom, the t-distribution is:

Which of the following is true regarding a linear combination of normally distributed random variables?

If a stock's price is modeled using a lognormal distribution, what can be said about the stock's returns?

For a discrete uniform distribution with n possible outcomes, what is the probability of each outcome?

Roy's Safety-First Criterion states that the optimal portfolio maximizes:

What is the approximate probability that a normally distributed random variable falls within one standard deviation of the mean?

When constructing confidence intervals for small samples from populations with unknown variance, which distribution is most appropriate?

If a cumulative distribution function F(x) = x/10 for x in {1, 2, 3, 4}, what is F(3)?

What is the critical z-value for a 95 percent confidence interval?

In a simulation of stock option values, the process of generating random values for risk factors based on assumed distributions is a key step in:

If two events are independent, the probability of both occurring is determined by:

Which distribution uses the parameter 'degrees of freedom' equal to n - 1?

What is the lower bound of a normal distribution?

A key difference between a univariate and a multivariate normal distribution is: