Studies on mutual fund performance indicate

• A.Most mutual funds had lower returns than the benchmark portfolio after expenses and roughly matched the benchmark portfolio before expenses
• B.Most mutual funds had higher returns than the benchmark portfolio after expenses
• C.Most mutual funds had roughly the same returns as the benchmark portfolio after expenses

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Two events, A and B, are independent if:

• A.P(A and B) = P(A) P(B)
• B.P(A and B) = P(A) + P(B)
• C.P(A and B) = 1

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Swiss Franc is quoted in the New York as CHF:$ = 0.4312 - 0.4317. What is the ask price for $ in terms of a direct quote for a Swiss resident?

• A.CHF:$ = 0.4317
• B.$:CHF = 2.3191
• C.$:CHF = 2.3164

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Which of the following is incorrect?

• A.Sum of deviations from the mean always equals zero.
• B.For a sample, the Mean Absolute Deviation can never be equal to Standard Deviation.
• C.A t-distribution does not have a finite standard deviation.

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If an analyst is trying to estimate the value of a stock, using the formula E(Y | E) = [y_1 * P(y_1 |E) + y_2
* P(y_2|E) + ... y_n * P(y_n|E), the analyst is making use of:

• A.subjective probability.
• B.the multiplication rule for independent events.
• C.conditional expectation.

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