Study Session 2: Quantitative Methods: Basic Concepts
So on this problem question:
For a sample size of 17, with a mean of 116.23 and a variance of 245.55, the width of a 90% confidence interval using the appropriate t-distribution is closest to:
So we simply know the DF is 16
What confuses me is:
1) If it isn’t specified as one tail or two tail, does the default is two tail?
2) If it’s two tail, do we check the “Level of significance for two tail table” at
a. check the value at 10% / 2 = 5% = 0.05 significance = 2.120
The annual returns for three portfolios are shown in the following table. Portfolios P and R were created in 2009, Portfolio Q in 2010.
Annual Portfolio Returns (%)
Q. The median annual return from portfolio creation to 2013 for:
Q: A couple plans to pay their child’s college tuition for 4 years starting 18 years from now. The current annual cost of college is C$7,000, and they expect this cost to rise at an annual rate of 5 percent. In their planning, they assume that they can earn 6 percent annually. How much must they put aside each year, starting next year, if they plan to make 17 equal payments?
The correct answer is C$2,221.58.
Draw a time line.
Is there a function in BA 2 plus to calculate Reading 6 TVM TEST # 17? Calculation of stock PV based on Dividend payment, period and rate of return?
Investment in 10,000 common shares of a company for 1 year earned 15.5%. Investor received $2,500 dividend just prior to the sale of the shares at $24 per. The price that the investor paid for each share one year earlier was closest to blank.
I tried to calculate the loan payments for a 5 year loan of a total of 50k with an annual rate of 9% compounded quarterly using two methods:
1st→Calculating the EAR = 9.31%, then getting the annual payment = 12957.6 and then dividing by 4, so the quarterly payment is 3239.4
2nd→Introducing 20 periods in the BAII plus (5 years X 4 quarters) and a quarterly rate of 9/4 = 2.25%. that results in a quarterly payment of 3132.1
Why are the results different? Shouldn’t they be the same?
An investor buys one share of stock for $100. At the end of year one she buys three more shares at $89 per share. At the end
of year two she sells all four shares for $98 each. The stock paid a dividend of $1.00 per share at the end of year one and
year two. What is the investor’s moneyweighted
rate of return?
I attempted to begin studying the lvl 1 material through Kaplan using their full package about a year ago in preparation for the June ‘18 lvl 1 exam. Basically what happened was I began to feel overwhelmed. I am a CFP (FWIW*) and have an understanding of basic TVM concepts however I felt that the QM basics were a little over my head.
I want to start my career as a business analyst and I want to know the roles and responsibilities of a business analyst.
Can anyone suggest me?
How would you solve this algebraically? Can you show your work? Thanks!
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