Title Quant - Question.pdf ✅

CFA Program Level I for February 2024 1 QUANTITATIVE METHODS 1/ Which of the following factors is not used in the calculation of a confidence interval? A. Point estimate B. Sampling error C. Reliability factor 2/ An analyst performs a simple linear regression of a stock's monthly return on the monthly return of a market index (both in %) and gathers the following information: • Estimated slope 1.0 • Estimated intercept 1.2% • Standard error of the forecast 1.4% • Critical t-values at a 5% significance level 2.032 The 95% prediction interval for the stock's monthly return, given that the forecasted monthly return on the index is 3.5%, is closest to: A. 0.7% to 6.3%. B. 1.9% to 7.5%. C. 3.3% to 6.1%. 3/ An investor purchases a stock for $100. Immediately after receiving a dividend of $7, the investor sells the stock for $107. The holding period return of the investment is closest to A. 0% B. 7% C. 14%, 4/ For a sample of 50 observations, in which of the following situations is a nonparametric test least likely to be appropriate? The data A. contain outliers. B. are given in ranks.
CFA Program Level I for February 2024 2 C. come from a population with a lognormal distribution. 5/ Which of the following test statistics is most appropriate for a hypothesis test concerning the mean difference between two normally distributed populations? A. t-statistic B. F-statistic C. Chi-square statistic 6/ An asset earns 13.1% over a 16-month period. The asset's annualized compound rate of return is closest to: A. 9.3%. B. 9.7% C. 9.8% 7/ Which of the following statements is most accurate? Cryptocurrencies: A. exhibit low volatility B. have no limits on the total amount of currency that may be issued. C. allow transactions between parties without the need for an intermediary. 8/ A company estimates its revenue will be 50% higher than today in four years' time. The compound annual growth rate is closest to: A. 10.7%. B. 11.8%. C. 12.5%. 9/ An investor purchased a stock for $450 and then sold the stock immediately after receiving a dividend of $2. If the holding period return is a loss of 10.2%, the investor sold the stock at a price closest to: A. $402
CFA Program Level I for February 2024 3 B. $404. C. $406. 10/ An investor considers the following certificates of deposit (CDs) available for purchase at face value: CD Interest Rate • 1 2.2% • 2 3.3% • 3 4.4% If each CD has the same maturity and default risk, the opportunity cost of investing in CD 1 is closest to A. 0.0%. B. 1.1%. C. 2.26. 11/ Which of the following statements is most accurate with respect to the widespread adoption of algorithmic trading in financial markets? A. The need for low-latency networks has grown. B. Markets have become less fragmented in terms of trading venues. C. Average trade size has increased as algorithmic trading is used to execute large institutional orders 12/ The failure of machine learning models to accurately predict outcomes can be the result of A. overfitting, but not underfitting. B. underfitting, but not overfitting. C. either overfitting or underfitting.
CFA Program Level I for February 2024 4 13/ An investment pays $1,000 annually for five years, with the first payment occurring three years from today. If the discount rate is 6% compounded annually, the present value of the investment today is closest to A. $3,537. B. $3,749. C. $4,212 14/ Which of the following is most likely an advantage of traditional financial advisers over fully automated digital wealth managers? A. Lower account minimums B. Dividend reinvestment options C. Solutions that better address the needs of complex portfolios 15/ To test whether a population's mean, μ, is greater than zero, the alternative hypothesis should be formulated as: Α. μ ≤ 0. Β. μ ≥ 0. C. μ > 0. 16/ A test of independence is based on the data in a contingency table with 5 rows and 4 columns. Using a nonparametric test statistic that is chi-square distributed, the number of degrees of freedom is: A. 7. B. 12 C. 20. 17/ In a parametric test of the correlation between two variables with a sample size of 51 and sample correlation of 0.6. the t-statistic is closest to A. 0.07. B. 5.25.