Quantitative Methods — 5 questions with detailed solutions
An investor deposits $10,000 in an account earning 8% per year, compounded quarterly. What is the value of the account after 5 years?
A portfolio has returns of 10%, -5%, 20%, and 15% over four years. The geometric mean return is closest to:
A stock's returns are normally distributed with a mean of 12% and standard deviation of 20%. The probability that the return will be less than -8% is closest to:
An analyst wants to test whether a fund's mean return exceeds 10%. With a sample mean of 12%, sample standard deviation of 5%, and sample size of 36, the test statistic is closest to:
The present value of a perpetuity paying $500 per year, with the first payment one year from now, at a discount rate of 8% is: