Covariance - Study guides, Class notes & Summaries

CISI technical exam Final Exam Study Questions with COMPLETE SOLUTIONS (LATEST 2024] Total portfolio risk measured by - CORRECT ANSWER Systemic risk + specific risk Systemic risk measured by - CORRECT ANSWER Beta, the variance correlated to the market Specific risk measured by - CORRECT ANSWER Variance independent of the market (diversifiable) Required return - CORRECT ANSWER rfr + risk premium Holding period return - CORRECT ANSWER (val end - val start + CFs)/val start Variance - ...

Investment talent analysis can be an important form of __________ criteria. - Answer- qualitative According to most reports, an increase in child labor in developing countries can be indirectly linked to the: - Answer- World trade organization An investor reviews a model and determines that the factors used are oversimplified in regard to this investor's risk. This investor most likely is using which modeling strategy to evaluate risk? - Answer- Value at risk An investor working with a...

A strong open followed by strong close will allow trader to do what? - Answer Buy on a pullback after next open. A weak close after strong open will allow trader to do what? - Answer Sell short near following open Highs and lows occur where during the day? - Answer Most often at the open Large opening gaps imply what about the day? - Answer Greater volatility Pivot point calculation - Answer P = (H+L+C)/3 R1 = 2P-L S1 = 2P-H R2 = (P-S1)+R1 S2 = P-(R1-S1) Weaknesses of Candlest...

The covariance is A) An unstandardized version of the correlation coefficient B) A measure of the strength of a relationship between two variables C) Dependent on units of measurement of the variables D) All of the above Correct Answer-D) All of the above A scatterplot shows Correct Answer-Scores on one variable plotted against scores on a second variable. Which of the following statements about the Pearson's correlation coefficient is not true? A) It can be used as an effect size me...

CFA Level 1 Formulas || With 100% Accurate Formulas CFA Level 1 Formulas || With 100% Accurate Formulas Sharpe Ratio - ANSWER - Risk of portfolio - risk free / Standard deviation of portfolio Joint Probability - ANSWER - P(AB) = P(A|B) * P(B) Addition rule - ANSWER - P(A or B) = P(A) + P(B) - P(AB) Multiplication rule - ANSWER - P(A and B) = P(A)*P(B) Total Probability Rule - ANSWER - P(A) = P(A|B1)*P(B1)...+P(A|B2)*P(B2) Expected Value - ANSWER - P(x)*(x) Covariance - ANSW...

CPCE Sample Test Questions and Answers 2023 Kohlberg's theory of moral development includes 3 progressive levels culminating in... A. self-actualization, wherein the individual is fully humanistic. B. principled thought, wherein the individual adopts a self- accepted set of standards of behavior. C. androgyny, wherein the individual exhibits both male and female stereotypic behaviors. D. personhood, wherein the individual is free from moral dilemmas. B A professional counselor de...

MATH 120: Introduction to Statistics latest Week 8 Final Exam. QTR with 100% Accurate Answers. GRADED+ 1. 10 students take an exam and earn the following scores: 86, 96, 90, 92, 79, 94, 86, 74, 82, and 91 What is the mean of the scores? - 85 - 86 - 87 - 88 - 89 2. 10 students take an exam and earn the following scores: 86, 96, 90, 92, 79, 94, 86, 74, 82, and 91 What is the median of the scores? - 85 - 86 - 87 - 88 - 89 3. 10 students take an exam and earn the following score...

Covariance: If x and y consistently vary in the same direction, the numerator will be - CORRECT ANSWER positive Deductive Reasoning - CORRECT ANSWER process of drawing a conclusion from a principle already known or assumed (The sun rises every morning; therefore, the sun will rise on Tuesday morning.) Inductive Reasoning - CORRECT ANSWER -A type of logic in which generalizations are based on a large number of specific observations. -Use particular to explain the...

CAIA Level I Exam 2023 5th percentile vs 25th percentile performance - CORRECT ANSWER-5th percentile managers outperform in every comparison BUT 25th percentile managers' performance is more volatile --> even if 25th percentile managers outperform they tend to mean revert --> demonstrates the perils of choosing managers based on historical performance alternative asset performance evaluation - CORRECT ANSWER-unlike in traditional assets, alpha is difficult to define in alterna...

Major uses of econometrics correct answers Forecasting: interest rates, stock prices Policy evaluation: effect of a minimum wage Testing economic policy: do consumers behave as our theories predict Estimating (magnitudes of) economic relationships (PED, MPC, returns to education) Why Econometrics? correct answers Observe the world and cannot experiment Means we can rarely hold constant all factors in the economic model What is covariance? correct answers Covariance measures the total v...