Sarah Parker is buying a new $25,000 car. Her trade-in is worth $5,000 so she needs to bo

n of 1.45% and a standard deviation of 10.8%. The S&P 500 has a mean monthly return of 1.2% and a standard deviation of 6.8%. The mean monthly return on T-bills is 0.30%. Calculate Sharpe 抯 reward-to-variability ratio for the growth portfolio and for the S&P 500. Which of the following statements is TRUE?

A.Based on a reward-to-variability ratio the growth portfolio is preferable to the S&P 500.

B.The growth portfolio has more excess return per unit of risk than the S&P 500.

C.An investor would always prefer the S&P 500 to the growth portfolio.

D.Based on a reward-to-variability ratio the S&P 500 is preferable to the growth portfolio.

A.Members and candidates acting as supervisors cannot delegate supervisory responsibilities.

B.Members and candidates can delegate supervisors’ responsibilities without implementing the education and training programs.

C.When delegating supervisors’ responsibilities, members and candidates should instruct on the methods to prevent and detect the violation of Code and Standards.

A.Members are not allowed to participate in independent practice.

B.Under no circumstance shall a member violate his loyalty to his employer.

C.When the employer engages in illegal activities, the actions taken by the employee to protect the integrity of the capital market are permitted.

year each year, starting at the end of year 1, how much will she accumulated after 40 years if she expects to earn 12 percent over the period?

A.$2,301,274.26.

B.$2,577,427.17.

C.$279,152.91.

D.$120,000.00.

percent return given a boom economy is 80 percent. Find the joint probability of a boom economy and a 50 percent return for Yacht Co.

A.0.20.

B.0.32.

C.0.40.

D.0.50.

and a standard deviation of 14 percent. Stock B has a mean annual return of 20 percent and a standard deviation of 30 percent. Calculate the coefficient of variation (CV) of each stock. Which of the following statements is TRUE?

A.Stock A (CV = 0.875) has more dispersion relative to the mean than stock B.

B.Stock A (CV = 0.875) has less dispersion relative to the mean than stock B.

C.Stock A (CV 1.14) has more dispersion relative to the mean than stock B.

D.Stock A (CV 1.14) has less dispersion relative to the mean than stock B.

ment option or the lump sum option. Justin can earn 8% at the bank and the annual cash flow option is $100,000/year, beginning today for 15 years. What is the annual cash flow option worth to Justin today?

A.$855,947.87.

B.$1,500,000.00.

C.$1,080,000.00.

D.$924,423.70.

A.2.5%.

B.3.0%.

C.1.7%.

D.3.3%.

A.The interquartile range contains half the data points in the data set.

B.The interquartile range is set at half the distance between the largest and smallest number in the data set.

C.If the median is on the left side of the interquartile range the data is skewed to the left.

D.Downside outliers are those observations below the first quartile less 1.5 times the interquartile range.

A.62 and 65.

B.60 and 63.

C.65 and 62.

D.62.5 and 62.5.