Stock Performance — Quiz Answers

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Each table gives a discrete probability distribution for a stock based on the past eleven trading sessions. Which stock is most likely to not lose value in the near future?

A
Stock W Table with 2 columns and 4 rows.Row 1: Column 1, 'Outcome'; Column 2, 'P(Outcome)' Row 2: Column 1, 'increase'; Column 2, '0 point 6' Row 3: Column 1, 'decrease'; Column 2, '0 point 4' Row 4: Column 1, 'no change'; Column 2, '0'
B
Stock Y Table with 2 columns and 4 rows.Row 1: Column 1, 'Outcome'; Column 2, 'P(Outcome)' Row 2: Column 1, 'increase'; Column 2, '0 point 4' Row 3: Column 1, 'decrease'; Column 2, '0 point 3' Row 4: Column 1, 'no change'; Column 2, '0 point 3'
C
Stock Z Table with 2 columns and 4 rows.Row 1: Column 1, 'Outcome'; Column 2, 'P(Outcome)' Row 2: Column 1, 'increase'; Column 2, '0 point 4' Row 3: Column 1, 'decrease'; Column 2, '0 point 5' Row 4: Column 1, 'no change'; Column 2, '0 point 1'
D
Stock X Table with 2 columns and 4 rows.Row 1: Column 1, 'Outcome'; Column 2, 'P(Outcome)' Row 2: Column 1, 'increase'; Column 2, '0 point 5' Row 3: Column 1, 'decrease'; Column 2, '0 point 4' Row 4: Column 1, 'no change'; Column 2, '0 point 1'
4

Which equation represents the probability that a stock will not lose value in the near future?

A
P(decrease or no change)=P(increase)+P(no change)
B
P(increase or no change)=P(increase)−P(no change)
C
P(increase or no change)=P(increase)+P(no change)
D
P(decrease or no change)=P(increase)−P(no change)
5

Which phrase represents the sigma notation in word form? ∑i=18i^3

A
the sum of i cubed from one to eight
B
the sum i to the third power from eight to one
C
the sum of i to the eighth power from one to three
D
the sum of i squared from three to eight
6

For which table is the equation true? P(no change)=P(decrease)

A
Table with 2 columns and 6 rows.Row 1: Column 1, 'Day'; Column 2, 'Price ($)' Row 2: Column 1, '0'; Column 2, '12' Row 3: Column 1, '1'; Column 2, '11' Row 4: Column 1, '2'; Column 2, '14' Row 5: Column 1, '3'; Column 2, '13' Row 6: Column 1, '4'; Column 2, '13'
B
Table with 2 columns and 6 rows.Row 1: Column 1, 'Day'; Column 2, 'Price ($)' Row 2: Column 1, '0'; Column 2, '12' Row 3: Column 1, '1'; Column 2, '12' Row 4: Column 1, '2'; Column 2, '10' Row 5: Column 1, '3'; Column 2, '10' Row 6: Column 1, '4'; Column 2, '8'
C
Table with 2 columns and 6 rows.Row 1: Column 1, 'Day'; Column 2, 'Price ($)' Row 2: Column 1, '0'; Column 2, '12' Row 3: Column 1, '1'; Column 2, '12' Row 4: Column 1, '2'; Column 2, '14' Row 5: Column 1, '3'; Column 2, '14' Row 6: Column 1, '4'; Column 2, '11'
D
Table with 2 columns and 6 rows.Row 1: Column 1, 'Day'; Column 2, 'Price ($)' Row 2: Column 1, '0'; Column 2, '12' Row 3: Column 1, '1'; Column 2, '12' Row 4: Column 1, '2'; Column 2, '11' Row 5: Column 1, '3'; Column 2, '11' Row 6: Column 1, '4'; Column 2, '13'
7

Which phrase best describes a n -day simple moving average, where n is a positive integer?

A
the average price of a stock at the closing of n trading sessions
B
the greatest price of a stock after n trading sessions
C
the average price of a stock at the opening of n trading sessions
D
the lowest price of a stock after n trading session
8

Each table gives a discrete probability distribution for a stock based on recent trading sessions. Which stock's price is most likely to decrease in the near future?

A
Stock Y Table with 2 columns and 4 rows.Row 1: Column 1, 'Outcome'; Column 2, 'P (Outcome)' Row 2: Column 1, 'increase'; Column 2, '0 point 5' Row 3: Column 1, 'decrease'; Column 2, '0 point 3' Row 4: Column 1, 'no change'; Column 2, '0 point 2'
B
Stock W Table with 2 columns and 4 rows.Row 1: Column 1, 'Outcome'; Column 2, 'P (Outcome)' Row 2: Column 1, 'increase'; Column 2, '0 point 4' Row 3: Column 1, 'decrease'; Column 2, '0 point 4' Row 4: Column 1, 'no change'; Column 2, '0 point 2'
C
Stock X Table with 2 columns and 4 rows.Row 1: Column 1, 'Outcome'; Column 2, 'P (Outcome)' Row 2: Column 1, 'increase'; Column 2, '0 point 6' Row 3: Column 1, 'decrease'; Column 2, '0 point 3' Row 4: Column 1, 'no change'; Column 2, '0 point 1'
D
Stock Z Table with 2 columns and 4 rows.Row 1: Column 1, 'Outcome'; Column 2, 'P (Outcome)' Row 2: Column 1, 'increase'; Column 2, '0 point 7' Row 3: Column 1, 'decrease'; Column 2, '0 point 2' Row 4: Column 1, 'no change'; Column 2, '0 point 1'
9

An investor reads an article that states, "This company's 50-day moving average has exceeded its 200-day moving average." Which is the best interpretation of this statement?

A
The stock's performance has improved recently and may be a good investment.
B
The stock's performance has worsened recently and may be a bad investment.
C
The stock's performance has worsened recently, but it might be a good investment.
D
The stock's performance has improved recently, but it might be a bad investment.
10

Which statement correctly describes the table?

A
There is a 20 percent chance that n=1.
B
There is a 20 percent chance that n<1.
C
There is a 60 percent chance that n<4.
D
There is a 60 percent chance that n=4.

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