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...

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...

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...

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...

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...

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...

PRM Exam 3 COMPLETE2 2024 Experimental Design - ANSWER-A design in which researchers manipulate an independent variable and measure a dependent variable to determine a cause-and-effect relationship. Allows to draw claims of causation Variables - ANSWER-factors that can change in an experiment. can take on multiple values. two subsets. Independent Variable (IV) - ANSWER-- Predictor - Usually manipulated - treatment - at least two groups Causation - ANSWER-1) Temporal precedence ...

PRM Exam 3 COMPLETE2 2024 Experimental Design - ANSWER-A design in which researchers manipulate an independent variable and measure a dependent variable to determine a cause-and-effect relationship. Allows to draw claims of causation Variables - ANSWER-factors that can change in an experiment. can take on multiple values. two subsets. Independent Variable (IV) - ANSWER-- Predictor - Usually manipulated - treatment - at least two groups Causation - ANSWER-1) Temporal precedence ...