# central limit theorem

What did you guys pick in the Q where there were four stock returns (or something like that) with arith mean, geometric mean, standard deviation, and MAD. Which rows did not support central limit theorem? i pick the two with arith mean < geo mean, cuz i think geo mean is always smaller or equal to arith mean, and two row were like that

Geo is always less than or equal to arith unless the data sets are identical. Don’t remember what was going on with the std. dev…

sylwester, we discussed this question at great length a couple of days ago. This particular question was asking about measures of central tendency, and as such the standard dispersion data (MAD and std. dev) is just a decoy. Like cfaboston28 mentioned, only 3 and 4 had GM > AM, which is obviously wrong.

hey wt abt the ethics q… country a laws are stricter than COE which is stricter than country B laws… wt was the answer to that

It’s the standards because the more strict law governs that the law of the country where the client resides rules, which is less strict than the Standards. Therefore, follow the Standards.

Correct. I picked to use the COE. Also, for the other quant question , I picked the one where GM > AM

+2 for me! =)

I think I stupidly messed up the four bond with credit rating and maturity given. I think I marked D. Just wanted to check with you guys in case I got it right by chance

adb258 Wrote: ------------------------------------------------------- > I think I stupidly messed up the four bond with > credit rating and maturity given. I think I marked > D. Just wanted to check with you guys in case I > got it right by chance I marked B, unsure of myself, as usual.

What was it … BB with maturity of 5?

it was the last two because the arithmetic mean was less than the geometric mean which won’t happen if the values are not the same.

Worst risk on a bond would be the lowest rating eg C with the longest term to maturity right??? Ie ten years vs 5 years would be riskier??

Correct… does anyone remember the options though? I think they were: AA 10 years AAA 5 years BB 5 years BBB 10 years. Is that right?

Oooo, could a been trapped with the bb… Not sure though… If I read that quick I might pick BBB 10 just from going too quick… BB 5 from that list tho

adb258, Choices seems to be right. I picked D with lowest rating and longest term.

did my eyes fail me? i thought it was aa 5, aa 10, bb 5, bb 10

krishh, Based on adb258’s list the correct choice would be BB 5. Based on finance03’s list above the correct choice would be BB 10.

waht was the question is about? can someone repeat? Why it should be BB5, BBB10 has more risk.

Sorry, pretty sure BBB is lower risk than BB. (AAA is the lowest risk)