quantitative methods quiz

Within a discussion about the present value of future positive cash flows,
Osama stated that the present value will be greater for longer periods. Ehab
disagrees with Osama’s statement, adding that the present value increases as
the discount rate gets larger. Which of the two statements made by Ehab is/are
correct?

Rix, who lives in US, wants to buy US securities two months from now.
………..…should not be part of the required rate of return?

Which statement is not correct?

A normal distribution has excess kurtosis equal to:

X investor in a mutual fund wants to measure the performance over several
years. X should use:

A leptokurtic distribution – relative to the normal distribution – does have

Analyst A: “The probability of an economic recession occurring if there’s an
interest rate rise” is an example of unconditional probability.
Analyst B: “The probability of an expansionary monetary policy regardless of
the occurrence of a change in the inflation rate” is an example of unconditional
probability.

You desire to get the probability that Investment x will have a return higher
than the risk-free rate. If you find that Investment x has a positive return. You
should deduce that:

Who is correct?
Analyst 1: The correlation coefficient ranges from -1 to +1 and is expressed in
terms of square units.
Analyst 2: Correlation measures the strength of the linear relationship
between two variables.

It is least correct to declare that:

When a random variable is lognormally distributed, the incorrect statement is:

……………. is least likely to need valuation using Monte Carlo simulation.

Consistent with central limit theorem, the sampling distribution of a population
is approximately normally distributed if:

The statement that is correct is …..

An analyst wishes to test for correlation between rows and columns of a
contingency table. The distribution of the test statistic is most likely to be:

Statement 1: A non-parametric test makes assumptions regarding the
distribution of the population from which samples are drawn.
Statement 2: A non-parametric test can be used when the assumptions of a
parametric test cannot be supported.

Which of the following is least likely to be assumed to equal zero regarding
linear regression?

Slope coefficient tells us:

The process of grouping items together according to characteristics determined
by the algorithm is best described as:

Underfitting is least likely to lead to: