Mr. Jimmy Software developer by profession wants to invest his part of savings in mutual funds. After researching he got to know about funds investment styles like mid-cap, small cap and large cap. He forwarded one of the research he found in article which provides probability matrix of probability of choice of mutual fund by similar set of investors and returns beating benchmark (B). Answer following questions using following probability matrix.
Returns (annual)
Mutual fund style
More than B
Less than B
Mid Cap
20%
10%
Small Cap
5%
5%
Large Cap
35%
25%
Question 1 (Q1) : What is the probability Jimmy choose Small cap mutual fund
Question 2 (Q2): What is the probability of returns are more than benchmark given invested in midcap.
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Question 2 of 20
2. Question
A Data research agency working for an insurance company providing credit card insurance, came up with research on credit cards lost by there owners. Research states in a given city, on an average 40 card owners lose their credit card in a year. What is the probability that exactly 2 owners will lose their credit card in a month?
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Question 3 of 20
3. Question
Read the following statements and choose the correct option.
Statement 1: Interquartile range is the difference between 75% and 25% quantiles.
Statement 2: It is comparable to standard deviation and is affected by outliers
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Question 4 of 20
4. Question
The hedge fund Marcus Ltd primary trades in exotic derivatives. Presently 10 managers are on the floor managing their own portfolio. The mean return generated by the firm is 18%. Assuming standard deviation equal to 7%, the confidence interval at 95% of the mean return is.
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Question 5 of 20
5. Question
Co-kurtosis of a bivariate normal depends on the correlation. Heena, is trying to determine the range for three co-kurtosis k (X,X,Y,Y) symmetrical case. What will be range of co-kurtosis for this case?
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Question 6 of 20
6. Question
Falcon research agency conducted survey to find out relationship between students scoring right answers in exam and number of hours put in preparation for exam. Details are given below.
Hours studied (X)
Score in Exam (Y)
120
35
160
40
190
46
210
55
220
60
260
68
Using OLS regression method, find out b0.
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Question 7 of 20
7. Question
Which of the following statements regarding linear regression is false?
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Question 8 of 20
8. Question
An analyst decided to run a regression analysis on company XYZ. It says that company’s earnings can be explained by operational costs (OC) and revenue (R). Test the statistical significance of independent variable OC at 5% significance level, assuming number of observations be 43.
Results of regression analysis are as follows:
Coefficient
Standard Error
Intercept
0.06
1.54
Operational Costs
0.36
0.036
Revenue
0.48
0.048
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Question 9 of 20
9. Question
A population has a known mean of 1,000. Suppose 1,600 samples are randomly drawn (with replacement) from this population. The mean of the observed samples is 998.7, and the standard deviation of the observed samples is 100. What is the standard error of the sample mean?
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Question 10 of 20
10. Question
To be covariance stationery, A time series must exhibit the following properties except
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Question 11 of 20
11. Question
Which one of the following statement is incorrect regarding seasonality
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Question 12 of 20
12. Question
Tom and Town is an ice cream manufacturer where Choco and Blueberry are top-selling flavors. The quality head is suspicious that Blueberry Flavor might have higher variation in sugar content that Choco Flavor. Quality head took 31 samples of each flavor and tested sugar content and found on average 100 g and 120 g of sugar content per Kg is there in Choco and Blueberry respectively with standard deviation of 20 g and 15 g. Determine if sugar content variation in Choco flavor ice cream is higher than in Blueberry at 5% significance.
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Question 13 of 20
13. Question
Which type of distribution produces the lowest probability for a variable to exceed a specified extreme value that is greater than the mean, assuming the distributions all have the same mean and variance?
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Question 14 of 20
14. Question
On a multiple-choice exam with four choices for each of six questions, what is the probability that a student gets fewer than two questions correct simply by guessing? (Use Binomial method)
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Question 15 of 20
15. Question
After running regression on monthly stock returns with 3 independent variables over a period of 4 years. Total sum of squares for the regression is 300 and sum of squared errors is 100. Calculate R2 and adjusted R2
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Question 16 of 20
16. Question
Flipping a fair coin two times is an example of?
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Question 17 of 20
17. Question
Co-skewness is always ___ in a bivariate normal sample because data is symmetrical and normally distributed
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Question 18 of 20
18. Question
What does a hypothesis test at the 5% significance level mean (Type 1 error) ?
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Question 19 of 20
19. Question
.Jarque Bera Test is used to test whether a distribution is normal or not. Which of the following statement/s is/are least accurate about Jarqe – Bera Testb.
It uses hypothesis testing for Skewness and Kurtosis of distribution
Null is H0: S= 0 and K = 0
Students T distribution is used to test the hypothesis.
If critical value is 5.99 at 5% confidence and given degrees of freedom. Null is true if T stat is above 5.99.
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Question 20 of 20
20. Question
Based on half yearly data of Newman Inc. stock returns, found that daily variance of return is 0.09. What is annual volatility of stock return (assuming 250 days in year)
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