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Quant R1_2

Authored by Hanh Nguyen

Financial Education

Professional Development

Used 2+ times

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20 questions

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1.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

An investor deposits £2,000 into an account that pays 6% per annum compounded continuously. The value of the account at the end of four years is closest to:

2525
2542
2854

2.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Using a discount rate of 5%, compounded monthly, the present value (PV) of $5,000 to be received three years from today is closest to

$4,250
$4,319
$4,305

3.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

If the price of a stock goes from $15.00 to $16.20 in one year, the continuously compounded rate of return is closest to

0.077
0.0833
0.08

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Media Image

The geometric mean return for Fund Y is closest to

14.9 percent
15.6 percent
19.5 percent

5.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Media Image

A portfolio manager invests EUR5,000 annually in a security for four years at the following prices. The average price is best represented as the:

harmonic mean of EUR76.48
geometric mean of EUR77.26
arithmetic average of EUR78.00

6.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which of the following statements regarding arithmetic and geometric means is correct?

The geometric mean will exceed the arithmetic mean for a series with non-zero variance.
The geometric mean measures an investment’s compound rate of growth over multiple periods.
The arithmetic mean measures an investment’s terminal value over multiple periods.

7.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Media Image

A fund receives investments at the beginning of each year and generates returns for three years as follows. Which return measure over the three-year period is negative?

Geometric mean return
Time-weighted rate of return
Money-weighted rate of return

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