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Flashcard 1611287366924

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#balance-sheet-analysis
Question
[...] ratios measure the ability of a company to meet future short-term financial obligations.
Answer
Liquidity ratios

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Subject 5. Uses and Analysis of the Balance Sheet
Balance Sheet Ratios Liquidity ratios measure the ability of a company to meet future short-term financial obligations from current assets and, more importantly, cash flows. Each of the following ratios takes a slightly different view of cash or near-cash items. Current Ratio is a measure of the number of dollars of current assets available to







Flashcard 1611290512652

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#balance-sheet-analysis
Question
[...] is a measure of the number of dollars of current assets available to meet current obligations.
Answer
Current Ratio

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Subject 5. Uses and Analysis of the Balance Sheet
tios measure the ability of a company to meet future short-term financial obligations from current assets and, more importantly, cash flows. Each of the following ratios takes a slightly different view of cash or near-cash items. <span>Current Ratio is a measure of the number of dollars of current assets available to meet current obligations. It is the best-known liquidity measure. A current ratio of less than 1 indicates the company has negative working capital. Quick Rati







Flashcard 1611295231244

Tags
#balance-sheet-analysis
Question
A current ratio of less than 1 indicates the company has [...]
Answer
negative working capital.

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Subject 5. Uses and Analysis of the Balance Sheet
the following ratios takes a slightly different view of cash or near-cash items. Current Ratio is a measure of the number of dollars of current assets available to meet current obligations. It is the best-known liquidity measure. <span>A current ratio of less than 1 indicates the company has negative working capital. Quick Ratio (Acid-Test Ratio) eliminates less liquid assets, such as inventory and pre-paid expenses, from the current ratio. If inve







Flashcard 1611305454860

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#balance-sheet-analysis #has-images
Question
Quick Ratio (Acid-Test Ratio) = [...]
Answer


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Subject 5. Uses and Analysis of the Balance Sheet
of dollars of current assets available to meet current obligations. It is the best-known liquidity measure. A current ratio of less than 1 indicates the company has negative working capital. <span>Quick Ratio (Acid-Test Ratio) eliminates less liquid assets, such as inventory and pre-paid expenses, from the current ratio. If inventory is not moving, the quick ratio is a better indicator of cash and near-cash items that will be available to meet current obligations. Cash Ratio is the most conservative liquidity ratio, determined by eliminating receivables from the quick ratio. As with the elimination of







Flashcard 1611308600588

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#balance-sheet-analysis
Question
[...] is the most conservative liquidity ratio.
Answer
Cash Ratio

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Subject 5. Uses and Analysis of the Balance Sheet
ory and pre-paid expenses, from the current ratio. If inventory is not moving, the quick ratio is a better indicator of cash and near-cash items that will be available to meet current obligations. <span>Cash Ratio is the most conservative liquidity ratio, determined by eliminating receivables from the quick ratio. As with the elimination of inventory in the quick ratio, there is no guarantee that the receivables will be collected.







Flashcard 1611318037772

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#balance-sheet-analysis
Question
Higher debt-equity ratio indicates [...]

Answer
higher financial risk.

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Subject 5. Uses and Analysis of the Balance Sheet
13; Solvency ratios measure a company's ability to meet long-term and other obligations. Long-Term Debt-Equity Ratio is an indicator of the degree of protection available to the creditors in the event of insolvency of a company. <span>Higher debt-equity ratio indicates higher financial risk. Debt-Equity Ratio includes short-term debt in the numerator. The total debt inclu







Flashcard 1611320397068

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#balance-sheet-analysis #has-images
Question
Long-Term Debt-Equity Ratio = [...]
Answer

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Subject 5. Uses and Analysis of the Balance Sheet
ory in the quick ratio, there is no guarantee that the receivables will be collected. Solvency ratios measure a company's ability to meet long-term and other obligations. <span>Long-Term Debt-Equity Ratio is an indicator of the degree of protection available to the creditors in the event of insolvency of a company. Higher debt-equity ratio indicates higher financial risk. Debt-Equity Ratio includes short-term debt in the numerator. The total debt inclu







Flashcard 1611322756364

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#balance-sheet-analysis
Question
[...] includes short-term debt in the numerator.

Answer
Debt-Equity Ratio

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Subject 5. Uses and Analysis of the Balance Sheet
rm Debt-Equity Ratio is an indicator of the degree of protection available to the creditors in the event of insolvency of a company. Higher debt-equity ratio indicates higher financial risk. <span>Debt-Equity Ratio includes short-term debt in the numerator. The total debt includes all liabilities, including non-interest-bearing debt such as accounts payables, accrued expenses, and deferre







Flashcard 1611325115660

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#balance-sheet-analysis #has-images
Question
Debt-Equity Ratio = [...]
Answer


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Subject 5. Uses and Analysis of the Balance Sheet
rm Debt-Equity Ratio is an indicator of the degree of protection available to the creditors in the event of insolvency of a company. Higher debt-equity ratio indicates higher financial risk. <span>Debt-Equity Ratio includes short-term debt in the numerator. The total debt includes all liabilities, including non-interest-bearing debt such as accounts payables, accrued expenses, and deferre







Flashcard 1611329834252

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#balance-sheet-analysis #has-images
Question
Total Debt Ratio =
Answer

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Subject 5. Uses and Analysis of the Balance Sheet
ilities, including non-interest-bearing debt such as accounts payables, accrued expenses, and deferred taxes. This ratio is especially useful in analyzing a company with substantial financing from short-term borrowing. <span>Total Debt Ratio = Financial Leverage Ratio = Financial statement analysis aims to investigate a company's financial condition and operating performance. Using financial rati







Flashcard 1611332193548

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#balance-sheet-analysis #has-images
Question
Financial Leverage Ratio =
Answer

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Subject 5. Uses and Analysis of the Balance Sheet
ing debt such as accounts payables, accrued expenses, and deferred taxes. This ratio is especially useful in analyzing a company with substantial financing from short-term borrowing. Total Debt Ratio = <span>Financial Leverage Ratio = Financial statement analysis aims to investigate a company's financial condition and operating performance. Using financial ratios helps to examine relationships among indi







Flashcard 1612732304652

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#balance-sheet-analysis
Question
How can you tell by ratios if a company has negative working capital?
Answer
A current ratio of less than 1

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Subject 5. Uses and Analysis of the Balance Sheet
the following ratios takes a slightly different view of cash or near-cash items. Current Ratio is a measure of the number of dollars of current assets available to meet current obligations. It is the best-known liquidity measure. <span>A current ratio of less than 1 indicates the company has negative working capital. Quick Ratio (Acid-Test Ratio) eliminates less liquid assets, such as inventory and pre-paid expenses, from the current ratio. If inve







Flashcard 1621333773580

Tags
#tvm
Question
What rates are included in the nominal rate of interest?
Answer
real risk-free

inflation.

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The nominal risk-free rate of return includes both the real risk-free rate of return and the expected rate of inflation. A decrease in expected inflation rate would decrease the nominal risk-free rate of return, but would have no effect on the real risk-free rate of return.







Flashcard 1621336132876

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#tvm
Question
A decrease in expected inflation rate would decrease the [...]
Answer
nominal risk-free rate of return

but would have no effect on the real risk-free rate of return.

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The nominal risk-free rate of return includes both the real risk-free rate of return and the expected rate of inflation. A decrease in expected inflation rate would decrease the nominal risk-free rate of return, but would have no effect on the real risk-free rate of return.







Flashcard 1621372046604

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#tvm
Question
The [...] is the single-period interest rate for a completely risk-free security if no inflation were expected.

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Flashcard 1621380435212

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#tvm
Question
Many countries have governmental short-term debt whose interest rate can be considered to represent the [...] interest rate in that country.
Answer
nominal risk-free

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Flashcard 1621382270220

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#tvm
Question
What is Mexico's nominal risk-free interest rate?
Answer
CETES

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Flashcard 1621384891660

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#tvm
Question
The [...] compensates investors for the risk of loss relative to an investment’s fair value if the investment needs to be converted to cash quickly.

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Flashcard 1621395901708

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#tvm
Question
How many ways to quote interest rates for investments paying more than once a year?
Answer
three

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Flashcard 1621399571724

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#tvm
Question
If a bank states that a particular CD pays a rate of 3% that compounds 4 times a year this is an example of what kind of rate?
Answer
Periodic interest rate

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Flashcard 1621401406732

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#tvm
Question
[...], is the annual rate of interest that does not account for compounding within the year.
Answer
Stated annual interest rate

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Flashcard 1621405863180

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#tvm
Question
Which is the annual interest rate quoted by financial institutions?
Answer
Stated annual interest rate

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Flashcard 1621407698188

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#tvm
Question
The periodic interest rate multiplied by the number of compounding periods per year is equal to the [...]
Answer
Stated annual interest rate

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Flashcard 1621409533196

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#tvm
Question
[...] is the annual rate of interest that takes full account of compounding within the year.
Answer
Effective annual rate (EAR)

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Flashcard 1621439941900

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#tvm
Question
What is the difference between nominal risk-free rate and real risk-free rate of return?
Answer
The nominal one takes inflation into account

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The nominal risk-free rate of return includes both the real risk-free rate of return and the expected rate of inflation. A decrease in expected inflation rate would decrease the nominal risk-free rate of return, but would have no effect on the real risk-free rate of return.







Flashcard 1621961870604

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#baii
Question
Cual es el truco para calcular continuous compounding?
Answer
poner en C/Y 12 luego 2ND y ex


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Parent (intermediate) annotation

Open it
Exhibit 2. Common Accounts Assets Cash and cash equivalents Accounts receivable, trade receivables Prepaid expenses Inventory Property, plant, and equipment Investment propert

Original toplevel document

3.1. Financial Statement Elements and Accounts
ounting periods), and sales returns and allowances (an offset to revenue reflecting any cash refunds, credits on account, and discounts from sales prices given to customers who purchased defective or unsatisfactory items). <span>Exhibit 2. Common Accounts Assets Cash and cash equivalents Accounts receivable, trade receivables Prepaid expenses Inventory Property, plant, and equipment Investment property Intangible assets (patents, trademarks, licenses, copyright, goodwill) Financial assets, trading securities, investment securities Investments accounted for by the equity method Current and deferred tax assets [for banks, Loans (receivable)] Liabilities Accounts payable, trade payables Provisions or accrued liabilities Financial liabilities Current and deferred tax liabilities Reserves Unearned revenue Debt payable Bonds (payable) [for banks, Deposits] Owners’ Equity Capital, such as common stock par value Additional paid-in capital Retained earnings Other comprehensive income Minority interest Revenue Revenue, sales Gains Investment income (e.g., interest and dividends) Expense Cost of goods sold Selling, general, and administrative expenses “SG&A” (e.g., rent, utilities, salaries, advertising) Depreciation and amortization Interest expense Tax expense Losses For presentation purposes, assets are sometimes categorized as “current” or “non-current.” For example, Tesco (a large European retailer) prese







Flashcard 1621978123532

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#tvm
Question
FV1 = [...]
Answer
PV(1 + r)  

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Flashcard 1621979958540

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#tvm
Question
[...] is the amount of funds originally invested
Answer

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Flashcard 1621981793548

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#tvm
Question
The interest earned each period on the original investment.
Answer
Simple interest

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Flashcard 1621984677132

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#tvm
Question

The process of accumulating interest on interest.

Answer
Compounding

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Flashcard 1621989395724

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#tvm
Question

FVN = [...]

Answer
PV(1 + r)N

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Flashcard 1621992803596

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Question
We can add amounts of money only if [...]
Answer
they are indexed at the same point in time.

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Flashcard 1621996473612

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Question
With more than one compounding period per year, the future value formula can be expressed as
Answer

FVN = PV (1 + rs/m )mN


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Flashcard 1621998308620

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#tvm
Question
The formula for the future value of a sum in N years with continuous compounding is
Answer

FVN = PV ersN


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Flashcard 1622000143628

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#tvm
Question
[...] ≈ 2.7182818
Answer

e


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Flashcard 1622004862220

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#tvm
Question
A [...] is a set of level never-ending sequential cash flows, with the first cash flow occurring one period from now.
Answer
perpetuity

a perpetual annuity,

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Flashcard 1622006172940

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Question
An [...] is a finite set of level sequential cash flows.
Answer

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Flashcard 1622010629388

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Question
An [...] has a first cash flow that occurs immediately (indexed at t = 0).
Answer

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Flashcard 1622020853004

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#tvm
Question
For a given discount rate, the farther in the future the amount to be received, the [...]
Answer
smaller that amount’s present value.

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Flashcard 1622234762508

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#tvm
Question
Interest calculated on the principal only.
Answer
Simple interest

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Flashcard 1622722088204

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#tvm
Question
Formula de valor presente de una perpetuidad
Answer

PV = A/r

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Flashcard 1622724709644

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#tvm
Question
A perpetuity of $10 per year with a 20 percent required rate of return has a present value of [...]
Answer
$10/0.2 = $50.

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Flashcard 1622726544652

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Question
PV of a Perpetuity formula is valid only for [...] .
Answer
a perpetuity with level payments

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Flashcard 1622876491020

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Question
To quickly approximate the number of periods, practitioners sometimes use an ad hoc rule called the [...]
Answer

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Rule of 72
To quickly approximate the number of periods, practitioners sometimes use an ad hoc rule called the Rule of 72 : Divide 72 by the stated interest rate to get the approximate number of years it would take to double an investment at the interest rate. Here, the approximation gives 72/7 = 10.3 year







Flashcard 1622881471756

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#tvm
Question
How do you solve for number of periods?
Answer
FVN = PV(1 + r)N

You solve for N

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Flashcard 1622889336076

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#summary #tvm
Question
[...], makes current and future currency amounts equivalent based on their time value.
Answer
The interest rate, r

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Open it
compensate lenders for risk: an inflation premium, a default risk premium, a liquidity premium, and a maturity premium. The future value, FV, is the present value, PV, times the future value factor, (1 + r) N . <span>The interest rate, r, makes current and future currency amounts equivalent based on their time value. The stated annual interest rate is a quoted interest rate that does not account for compounding within the year. The periodic rate is the quoted interest







Flashcard 1622891957516

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#summary #tvm
Question
There are two types of annuities, [...] and the [...]
Answer
the annuity due

ordinary annuity.

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s per year. The effective annual rate is the amount by which a unit of currency will grow in a year with interest on interest included. An annuity is a finite set of level sequential cash flows. <span>There are two types of annuities, the annuity due and the ordinary annuity. The annuity due has a first cash flow that occurs immediately; the ordinary annuity has a first cash flow that occurs one period from the present (indexed at t = 1). On







Flashcard 1624091004172

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#summary #tvm
Question
The present value of a perpetuity is A/r, where A is [...]
Answer
the periodic payment to be received forever.

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Parent (intermediate) annotation

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The present value of a perpetuity is A/r, where A is the periodic payment to be received forever.

Original toplevel document

Open it
may be handled in a similar fashion as single payments if we use annuity factors instead of single-payment factors. The present value, PV, is the future value, FV, times the present value factor, (1 + r) − N . <span>The present value of a perpetuity is A/r, where A is the periodic payment to be received forever. It is possible to calculate an unknown variable, given the other relevant variables in time value of money problems. The cash flow additivity principle c







Flashcard 1634536656140

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#baii
Question
De que es una pista SET?
Answer
De lo siguiente que debes usar (que si le picas SET va a cambiar el pedo)

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Flashcard 1635165277452

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#reading-8-statistical-concepts-and-market-returns
Question
Values from a population are called [...], and values from a sample are called [...]
Answer
parameters

statistics.

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Subject 1. The Nature of Statistics
btained if they were taught with this method. Both large groups of data (populations) and smaller groups (samples) have values associated with them, such as the average of all values in a sample and the average of all population values. <span>Values from a population are called parameters, and values from a sample are called statistics. A parameter is a numerical quantity measuring some aspect of a population of scores. The mean, for example, is a measure of central tendency. Greek letters are







Flashcard 1635167636748

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Question
[...] are used to designate parameters.
Answer
Greek letters

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Subject 1. The Nature of Statistics
tion are called parameters, and values from a sample are called statistics. A parameter is a numerical quantity measuring some aspect of a population of scores. The mean, for example, is a measure of central tendency. <span>Greek letters are used to designate parameters. Parameters are rarely known and are usually estimated by statistics computed in samples. Populations can have many parameters, but investment analysts are usually only concerned with a







Flashcard 1635388361996

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Question
[...] measurement represents the weakest level of measurement.
Answer
Nominal

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Subject 2. Measurement Scales
systematic fashion. To choose the appropriate statistical methods for summarizing and analyzing data, we need to distinguish between different measurement scales or levels of measurement. Nominal Scale <span>Nominal measurement represents the weakest level of measurement. It consists of assigning items to groups or categories. No quantitative information is conveyed and no ordering (ranking) of the items is implied. Nominal scales are qualitative rather







Flashcard 1635390721292

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Question
[...] scale consists of assigning items to groups or categories.
Answer
Nominal Scale

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    Subject 2. Measurement Scales
    or summarizing and analyzing data, we need to distinguish between different measurement scales or levels of measurement. Nominal Scale Nominal measurement represents the weakest level of measurement. It <span>consists of assigning items to groups or categories. No quantitative information is conveyed and no ordering (ranking) of the items is implied. Nominal scales are qualitative rather than quantitative. Religious preference, r







    Flashcard 1635395702028

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    Question
    [...] scales are qualitative rather than quantitative.
    Answer
    Nominal scales

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    Subject 2. Measurement Scales
    3; Nominal Scale Nominal measurement represents the weakest level of measurement. It consists of assigning items to groups or categories. No quantitative information is conveyed and no ordering (ranking) of the items is implied. <span>Nominal scales are qualitative rather than quantitative. Religious preference, race, and sex are all examples of nominal scales. Another example is portfolio managers categorized as value or growth style will have a scale of 1 f







    Flashcard 1635398061324

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    Question
    Religious preference, race, and sex are all examples of [...] scales
    Answer
    nominal scales.

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    Subject 2. Measurement Scales
    st level of measurement. It consists of assigning items to groups or categories. No quantitative information is conveyed and no ordering (ranking) of the items is implied. Nominal scales are qualitative rather than quantitative. <span>Religious preference, race, and sex are all examples of nominal scales. Another example is portfolio managers categorized as value or growth style will have a scale of 1 for value and 2 for growth. Frequency distributions are usually used to analyze data me







    Flashcard 1635400420620

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    Question
    What kind of measurement scale would be portfolio managers categorized as value or growth style will have a scale of 1 for value and 2 for growth.
    Answer
    nominal scales.

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    Subject 2. Measurement Scales
    egories. No quantitative information is conveyed and no ordering (ranking) of the items is implied. Nominal scales are qualitative rather than quantitative. Religious preference, race, and sex are all examples of nominal scales. <span>Another example is portfolio managers categorized as value or growth style will have a scale of 1 for value and 2 for growth. Frequency distributions are usually used to analyze data measured on a nominal scale. The main statistic computed is the mode. Variables measured on a nominal scale are often referred t







    Flashcard 1635408284940

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    Question
    Measurements with [...] are ordered with higher numbers representing higher values.
    Answer
    ordinal scales

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    Subject 2. Measurement Scales
    red on a nominal scale are often referred to as categorical or qualitative variables. Ordinal Scale Measurements on an ordinal scale are categorized. The various measurements are then ranked in their categories. <span>Measurements with ordinal scales are ordered with higher numbers representing higher values. The intervals between the numbers are not necessarily equal. Example 1 On a 5-point rating scale measuring attitudes toward gun control, the difference betwe







    Flashcard 1635410644236

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    Question
    The intervals between the numbers are not necessarily equal in the [...] .
    Answer
    ordinal scale

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    Subject 2. Measurement Scales
    #13; Ordinal Scale Measurements on an ordinal scale are categorized. The various measurements are then ranked in their categories. Measurements with ordinal scales are ordered with higher numbers representing higher values. <span>The intervals between the numbers are not necessarily equal. Example 1 On a 5-point rating scale measuring attitudes toward gun control, the difference between a rating of 2 and a rating of 3 may not represent the same







    Flashcard 1635423751436

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    Question
    [...] rank measurements and ensure that the intervals between the rankings are equal.
    Answer
    Interval scales

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    Subject 2. Measurement Scales
    o point for ordinal scales, since the zero point is chosen arbitrarily. The lowest point on the rating scale in the example was arbitrarily chosen to be 1. It could just as well have been 0 or -5. Interval Scale <span>Interval scales rank measurements and ensure that the intervals between the rankings are equal. Scale values can be added and subtracted from each other. For example, if anxiety was measured on an interval scale, a difference between a score of 10 and a score of 11 w







    Flashcard 1635430305036

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    Question
    Do Interval scales have a "true" zero point?
    Answer
    No

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    Subject 2. Measurement Scales
    3; For example, if anxiety was measured on an interval scale, a difference between a score of 10 and a score of 11 would represent the same difference in anxiety as the difference between a score of 50 and a score of 51. <span>Interval scales do not have a "true" zero point. Therefore, it is not possible to make statements about how many times higher one score is than another. For the anxiety example, it would not be valid to say that a person with a score







    Flashcard 1635434237196

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    Question
    A good example of an interval scale is the [...]
    Answer
    Fahrenheit measure of temperature.

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    Subject 2. Measurement Scales
    s twice as anxious as a person with a score of 15. True interval measurement is somewhere between rare and nonexistent in the behavioral sciences. No interval scales measuring anxiety, such as the one described in the example, actually exist. <span>A good example of an interval scale is the Fahrenheit measure of temperature. Equal differences on this scale represent equal differences in temperature, but a temperature of 30°F is not twice as warm as one of 15°F. Ratio Scale Rat







    Flashcard 1635438169356

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    Question
    [...] are like interval scales except that they have true zero points.
    Answer
    Ratio scales

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    Subject 2. Measurement Scales
    an interval scale is the Fahrenheit measure of temperature. Equal differences on this scale represent equal differences in temperature, but a temperature of 30°F is not twice as warm as one of 15°F. Ratio Scale <span>Ratio scales are like interval scales except that they have true zero points. This is the strongest measurement scale. In addition to permitting ranking and addition or subtraction, ratio scales allow computation of meaningful ratios. A good example is the Kelvin







    Flashcard 1635440790796

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    Question
    This is the strongest measurement scale
    Answer
    Ratio Scale

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    Subject 2. Measurement Scales
    on this scale represent equal differences in temperature, but a temperature of 30°F is not twice as warm as one of 15°F. Ratio Scale Ratio scales are like interval scales except that they have true zero points. <span>This is the strongest measurement scale. In addition to permitting ranking and addition or subtraction, ratio scales allow computation of meaningful ratios. A good example is the Kelvin scale of temperature. This scale has an







    Flashcard 1636239543564

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    Question
    An interval is also called a [...]
    Answer
    class.

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    Subject 3. Frequency Distributions
    with individual numbers becomes laborious and messy. In such circumstances, it is neater and more convenient to summarize results into what is known as a frequency table. The data in the display is called a frequency distribution. <span>An interval, also called a class, is a set of values within which an observation falls. Each interval has a lower limit and an upper limit. Intervals must be all-inclusive and non-overlapping. A frequency distribution is a tabular display of data categor







    Flashcard 1636249505036

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    Question
    [...] is the actual number of observations in a given interval.
    Answer
    Absolute frequency

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    Subject 3. Frequency Distributions
    of scores in each interval. The actual number of scores and the percentage of scores in each interval are displayed. This helps in the analysis of large amount of statistical data, and works with all types of measurement scales. <span>Absolute frequency is the actual number of observations in a given interval. Relative frequency is the result of dividing the absolute frequency of each return interval by the total number of observations. Cumulative absol







    Flashcard 1636251864332

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    Question
    [...] is the result of dividing the absolute frequency of each return interval by the total number of observations.
    Answer
    Relative frequency

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    Subject 3. Frequency Distributions
    al are displayed. This helps in the analysis of large amount of statistical data, and works with all types of measurement scales. Absolute frequency is the actual number of observations in a given interval. <span>Relative frequency is the result of dividing the absolute frequency of each return interval by the total number of observations. Cumulative absolute frequency and cumulative relative frequency are the results from cumulating the absolute and relative frequencies as we move from the first to the l







    Flashcard 1636263660812

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    Question
    There are two methods that graphically represent continuous data: [...] and [...]

    Answer
    histograms

    frequency polygons.

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    Subject 3. Frequency Distributions
    values (i.e., all values can be included in the data set). Examples would include the height of a person and the time to complete an assignment. These values can be measured using sufficiently accurate tools to numerous decimal places. <span>There are two methods that graphically represent continuous data: histograms and frequency polygons. 1. A histogram is a bar chart that displays a frequency distribution. It is constructed as follows: The class frequencies are shown on the vertical (y) axis (by







    Flashcard 1636462628108

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    Question
    [...]: The values in the data set can be counted.
    Answer
    Discrete

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    Subject 3. Frequency Distributions
    mber of observations and assign each observation to its class. Count the number of observations in each class. This is called the class frequency. Data can be divided into two types: discrete and continuous. <span>Discrete: The values in the data set can be counted. There are distinct spaces between the values, such as the number of children in a family or the number of shares comprising an index. Continuous: The values in the data set can be measu







    Flashcard 1636464987404

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    Question
    [...]: The values in the data set can be measured.
    Answer
    Continuous

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    Subject 3. Frequency Distributions
    ed into two types: discrete and continuous. Discrete: The values in the data set can be counted. There are distinct spaces between the values, such as the number of children in a family or the number of shares comprising an index. <span>Continuous: The values in the data set can be measured. There are normally lots of decimal places involved and (theoretically, at least) there are no gaps between permissible values (i.e., all values can be included in the data set). Example







    Flashcard 1636467346700

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    Question
    A [...] is a bar chart that displays a frequency distribution.
    Answer
    histogram

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    Subject 3. Frequency Distributions
    me to complete an assignment. These values can be measured using sufficiently accurate tools to numerous decimal places. There are two methods that graphically represent continuous data: histograms and frequency polygons. 1. <span>A histogram is a bar chart that displays a frequency distribution. It is constructed as follows: The class frequencies are shown on the vertical (y) axis (by the heights of bars drawn next to each other). The classes (intervals) are shown







    Flashcard 1636472065292

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    Question
    In a frequency histogram [...] are shown on the horizontal (x) axis.
    Answer
    the classes (intervals)

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    Subject 3. Frequency Distributions
    polygons. 1. A histogram is a bar chart that displays a frequency distribution. It is constructed as follows: The class frequencies are shown on the vertical (y) axis (by the heights of bars drawn next to each other). <span>The classes (intervals) are shown on the horizontal (x) axis. There is no space between the bars. From a histogram, we can see quickly where most of the observations lie. The shapes of histograms will vary, depending on th







    Flashcard 1636476783884

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    Question
    From a histogram, we can see quickly where [...].
    Answer
    most of the observations lie

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    Subject 3. Frequency Distributions
    #13; The class frequencies are shown on the vertical (y) axis (by the heights of bars drawn next to each other). The classes (intervals) are shown on the horizontal (x) axis. There is no space between the bars. <span>From a histogram, we can see quickly where most of the observations lie. The shapes of histograms will vary, depending on the choice of the size of the intervals. 2. The frequency polygon is another means of graphically displaying data. It is si







    Flashcard 1636481502476

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    Question
    Besides the histogram, the [...] is another means of graphically displaying data.
    Answer
    frequency polygon

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    Subject 3. Frequency Distributions
    s. There is no space between the bars. From a histogram, we can see quickly where most of the observations lie. The shapes of histograms will vary, depending on the choice of the size of the intervals. 2. <span>The frequency polygon is another means of graphically displaying data. It is similar to a histogram but the bars are replaced by a line joined together. It is constructed in the following manner: Absolute frequency for each interval is plotted







    Flashcard 1636487007500

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    Question
    Unlike a histogram, a frequency polygon adds a degree of [...] to the presentation of the distribution.

    Answer
    continuity

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    Subject 3. Frequency Distributions
    e following manner: Absolute frequency for each interval is plotted on the vertical (y) axis. The midpoint of each class (interval) is shown on the horizontal (x) axis. Neighboring points are connected with a straight line. <span>Unlike a histogram, a frequency polygon adds a degree of continuity to the presentation of the distribution. It is helpful, when drawing a frequency polygon, first to draw a histogram in pencil, then to plot the points and join the lines, and finally to rub out the histogram. In th







    Flashcard 1636494085388

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    Question
    If, in an examination, your relative frequency column does not sum [...], you know that you have made a mistake.
    Answer
    to 1 (or 100%)

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    Subject 3. Frequency Distributions
    st one is -27%. Let's use 6 non-overlapping intervals, each with a width of 10%. The first interval starts at -27% and the last one ends at 33%. Therefore, the entire range of the HPRs is covered. Hint: <span>If, in an examination, your relative frequency column does not sum to 1 (or 100%), you know that you have made a mistake. <span><body><html>







    Flashcard 1636515319052

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    Question
    [...] specify where data are centered.
    Answer
    Measures of central tendency

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    Subject 4. Measures of Center Tendency
    Measures of central tendency specify where data are centered. They attempt to use a typical value to represent all the observations in the data set. Population Mean The population mean is the average for a finite populatio







    Flashcard 1636517678348

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    Question

    The population mean formula

    Answer

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    Subject 4. Measures of Center Tendency
    head><head> Measures of central tendency specify where data are centered. They attempt to use a typical value to represent all the observations in the data set. Population Mean The population mean is the average for a finite population. It is unique; a given population has only one mean. where: N = the number of observations in the entire population X i = the ith observation ΣX i = add up X i , where i is from 0 to







    Flashcard 1636522396940

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    #has-images #reading-8-statistical-concepts-and-market-returns
    Question

    Sample Mean Formula

    Answer

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    Subject 4. Measures of Center Tendency
    que; a given population has only one mean. where: N = the number of observations in the entire population X i = the ith observation ΣX i = add up X i , where i is from 0 to N <span>Sample Mean The sample mean is the average for a sample. It is a statistic and is used to estimate the population mean. where n = the number of observations in the sample Arithmetic Mean The arithmetic mean is what is commonly called the a







    Flashcard 1636524756236

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    Question
    The population mean and sample mean are both examples of the [...] mean.
    Answer
    arithmetic

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    Subject 4. Measures of Center Tendency
    stic and is used to estimate the population mean. where n = the number of observations in the sample Arithmetic Mean The arithmetic mean is what is commonly called the average. <span>The population mean and sample mean are both examples of the arithmetic mean. If the data set encompasses an entire population, the arithmetic mean is called a population mean. If the data set includes a sample of values taken from a population, the







    Flashcard 1636531834124

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    Question
    What is the most widely used measure of central tendency?
    Answer
    Arithmetic mean

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    Subject 4. Measures of Center Tendency
    an. If the data set encompasses an entire population, the arithmetic mean is called a population mean. If the data set includes a sample of values taken from a population, the arithmetic mean is called a sample mean. <span>This is the most widely used measure of central tendency. When the word "mean" is used without a modifier, it can be assumed to refer to the arithmetic mean. The mean is the sum of all scores divided by the number of scores. It is us







    Flashcard 1636536552716

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    Question
    All [...] and [...] (measurement scales) data sets have an arithmetic mean.
    Answer
    interval

    ratio

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    Subject 4. Measures of Center Tendency
    e assumed to refer to the arithmetic mean. The mean is the sum of all scores divided by the number of scores. It is used to measure the prospective (expected future) performance (return) of an investment over a number of periods. <span>All interval and ratio data sets (e.g., incomes, ages, rates of return) have an arithmetic mean. All data values are considered and included in the arithmetic mean computation. A data set has only one arithmetic mean. This indicates that the mean is unique. The arithmetic mean is t







    Flashcard 1636542844172

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    Question
    The [...] is the only measure of central tendency where the sum of the deviations of each value from the mean is always zero.
    Answer
    arithmetic mean

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    Subject 4. Measures of Center Tendency
    d ratio data sets (e.g., incomes, ages, rates of return) have an arithmetic mean. All data values are considered and included in the arithmetic mean computation. A data set has only one arithmetic mean. This indicates that the mean is unique. <span>The arithmetic mean is the only measure of central tendency where the sum of the deviations of each value from the mean is always zero. Deviation from the arithmetic mean is the distance between the mean and an observation in the data set. The arithmetic mean has the following disadvantages: Th







    Flashcard 1636545203468

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    Question
    [...] from the arithmetic mean is the distance between the mean and an observation in the data set.
    Answer
    Deviation

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    Subject 4. Measures of Center Tendency
    thmetic mean computation. A data set has only one arithmetic mean. This indicates that the mean is unique. The arithmetic mean is the only measure of central tendency where the sum of the deviations of each value from the mean is always zero. <span>Deviation from the arithmetic mean is the distance between the mean and an observation in the data set. The arithmetic mean has the following disadvantages: The mean can be affected by extremes, that is, unusually large or small values. The mean cannot be determi







    Flashcard 1636547562764

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    Question

    The arithmetic mean has the following disadvantages:

    • The mean can be [...]
    Answer
    affected by extremes.

    unusually large or small values.

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    Subject 4. Measures of Center Tendency
    etic mean is the only measure of central tendency where the sum of the deviations of each value from the mean is always zero. Deviation from the arithmetic mean is the distance between the mean and an observation in the data set. <span>The arithmetic mean has the following disadvantages: The mean can be affected by extremes, that is, unusually large or small values. The mean cannot be determined for an open-ended data set (i.e., n is unknown). Geometric Mean The geometric mean has three important







    Flashcard 1636554902796

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    Question

    The geometric mean has two important properties:

    • It exists [...]
    • It is always less than the arithmetic mean if values in the data set are not equal.
    Answer
    only if all the observations are greater than or equal to zero.

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    Subject 4. Measures of Center Tendency
    s: The mean can be affected by extremes, that is, unusually large or small values. The mean cannot be determined for an open-ended data set (i.e., n is unknown). Geometric Mean <span>The geometric mean has three important properties: It exists only if all the observations are greater than or equal to zero. In other words, it cannot be determined if any value of the data set is zero or negative. If values in the data set are all equal, both the arithmetic and geometric means will be equal to that value. It is always less than the arithmetic mean if values in the data set are not equal. It is typically used when calculating returns over multiple periods. It is a better measure of the compound growth rate of an investment. When returns are variable by perio







    Flashcard 1636557262092

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    Question
    Which mean is typically used when calculating returns over multiple periods.
    Answer
    Geometric mean

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    Subject 4. Measures of Center Tendency
    f the data set is zero or negative. If values in the data set are all equal, both the arithmetic and geometric means will be equal to that value. It is always less than the arithmetic mean if values in the data set are not equal. <span>It is typically used when calculating returns over multiple periods. It is a better measure of the compound growth rate of an investment. When returns are variable by period, the geometric mean will always be less than the arithmetic mean. The more dispe







    Flashcard 1636559621388

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    Question
    When returns are variable by period, the geometric mean will always be [...] than the arithmetic mean.
    Answer
    less

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    Subject 4. Measures of Center Tendency
    value. It is always less than the arithmetic mean if values in the data set are not equal. It is typically used when calculating returns over multiple periods. It is a better measure of the compound growth rate of an investment. <span>When returns are variable by period, the geometric mean will always be less than the arithmetic mean. The more dispersed the rates of returns, the greater the difference between the two. This measurement is not as highly influenced by extreme values as the arithmetic mean.







    Flashcard 1636561980684

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    Question
    The more [...] the rates of returns, the greater the difference between Arithmetic and Geometric mean.
    Answer
    dispersed

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    Subject 4. Measures of Center Tendency
    ; It is typically used when calculating returns over multiple periods. It is a better measure of the compound growth rate of an investment. When returns are variable by period, the geometric mean will always be less than the arithmetic mean. <span>The more dispersed the rates of returns, the greater the difference between the two. This measurement is not as highly influenced by extreme values as the arithmetic mean. Weighted Mean The weighted mean is computed by weighting each observed v







    Flashcard 1636564602124

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    Question
    Which measurement is more highly influenced by extreme values, the arithmetic mean or geometric mean?
    Answer
    Arithmetic

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    Subject 4. Measures of Center Tendency
    r measure of the compound growth rate of an investment. When returns are variable by period, the geometric mean will always be less than the arithmetic mean. The more dispersed the rates of returns, the greater the difference between the two. <span>This measurement is not as highly influenced by extreme values as the arithmetic mean. Weighted Mean The weighted mean is computed by weighting each observed value according to its importance. In contrast, the arithmetic mean assigns equal weight







    Flashcard 1636566961420

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    Question
    The [...] is computed by weighting each observed value according to its importance.
    Answer
    weighted mean

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    Subject 4. Measures of Center Tendency
    less than the arithmetic mean. The more dispersed the rates of returns, the greater the difference between the two. This measurement is not as highly influenced by extreme values as the arithmetic mean. Weighted Mean <span>The weighted mean is computed by weighting each observed value according to its importance. In contrast, the arithmetic mean assigns equal weight to each value. Notice that the return of a portfolio is the weighted mean of the returns of individual assets in the portfolio. The







    Flashcard 1636569320716

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    Question
    the return of a portfolio is the [...] of the returns of individual assets in the portfolio.
    Answer
    weighted mean

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    Subject 4. Measures of Center Tendency
    alues as the arithmetic mean. Weighted Mean The weighted mean is computed by weighting each observed value according to its importance. In contrast, the arithmetic mean assigns equal weight to each value. Notice that <span>the return of a portfolio is the weighted mean of the returns of individual assets in the portfolio. The assets are weighted on their market values relative to the market value of the portfolio. When we take a weighted average of forward-looking data, the weighted mean is called expect







    Flashcard 1636571942156

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    Question
    When we take a weighted average of forward-looking data, the weighted mean is called [...]
    Answer
    expected value.

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    Subject 4. Measures of Center Tendency
    assigns equal weight to each value. Notice that the return of a portfolio is the weighted mean of the returns of individual assets in the portfolio. The assets are weighted on their market values relative to the market value of the portfolio. <span>When we take a weighted average of forward-looking data, the weighted mean is called expected value. Example A year ago, a certain share had a price of $6. Six months ago, the same share had a price of $6.20. The share is now trading at $7.50. Because the most







    Flashcard 1636574301452

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    Question
    The median is the value that [...]
    Answer
    stands in the middle of the data set, and divides it into two equal halves

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    Subject 4. Measures of Center Tendency
    ice inflates the weighted mean relative to the un-weighted mean. Median In English, the word "mediate" means to go between or to stand in the middle of two groups, in order to act as a referee, so to speak. <span>The median does the same thing; it is the value that stands in the middle of the data set, and divides it into two equal halves, with an equal number of data values in each half. To determine the median, arrange the data from highest to lowest (or lowest to highest) and find the middle observation.







    Flashcard 1636576660748

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    Question
    To determine the median the first step is to [...]
    Answer
    arrange the data from highest to lowest (or lowest to highest)

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    Subject 4. Measures of Center Tendency
    groups, in order to act as a referee, so to speak. The median does the same thing; it is the value that stands in the middle of the data set, and divides it into two equal halves, with an equal number of data values in each half. <span>To determine the median, arrange the data from highest to lowest (or lowest to highest) and find the middle observation. If there are an odd number of observations in the data set, the median is the middle observation (n + 1)/2 of the data set. If the number of observation







    Flashcard 1636579020044

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    Question
    Second step in finding the median
    Answer
    find the middle observation.

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    Subject 4. Measures of Center Tendency
    value that stands in the middle of the data set, and divides it into two equal halves, with an equal number of data values in each half. To determine the median, arrange the data from highest to lowest (or lowest to highest) and <span>find the middle observation. If there are an odd number of observations in the data set, the median is the middle observation (n + 1)/2 of the data set. If the number of observations is even, there is no single mid







    Flashcard 1636617817356

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    Question
    If there are an odd number of observations in the data set, the median formula is [...]
    Answer
    (n + 1)/2

    The middle observation

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    Subject 4. Measures of Center Tendency
    dle of the data set, and divides it into two equal halves, with an equal number of data values in each half. To determine the median, arrange the data from highest to lowest (or lowest to highest) and find the middle observation. <span>If there are an odd number of observations in the data set, the median is the middle observation (n + 1)/2 of the data set. If the number of observations is even, there is no single middle observation (there are two, actually). To find the median, take the arithmetic mean of the two middle o







    Flashcard 1636620963084

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    Question
    If the number of observations is even, how do you find the median?
    Answer
    Take the arithmetic mean of the two middle observations.

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    Subject 4. Measures of Center Tendency
    determine the median, arrange the data from highest to lowest (or lowest to highest) and find the middle observation. If there are an odd number of observations in the data set, the median is the middle observation (n + 1)/2 of the data set. <span>If the number of observations is even, there is no single middle observation (there are two, actually). To find the median, take the arithmetic mean of the two middle observations. The median is less sensitive to extreme scores than the mean. This makes it a better measure than the mean for highly skewed distributions. Looking at median income is usua







    Flashcard 1636623322380

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    Question
    For highly skewed distributions what is a better measure of central tendency, the mean or the median?
    Answer
    the median because it is less sensitive to extreme scores than the mean.

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    Subject 4. Measures of Center Tendency
    he middle observation (n + 1)/2 of the data set. If the number of observations is even, there is no single middle observation (there are two, actually). To find the median, take the arithmetic mean of the two middle observations. <span>The median is less sensitive to extreme scores than the mean. This makes it a better measure than the mean for highly skewed distributions. Looking at median income is usually more informative than looking at mean income, for example. The sum of the absolute deviations of each number from the median is lower than the sum of







    Flashcard 1636625681676

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    Question
    Looking at [...] income is usually more informative than looking at [...] income
    Answer
    median

    mean

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    Subject 4. Measures of Center Tendency
    , actually). To find the median, take the arithmetic mean of the two middle observations. The median is less sensitive to extreme scores than the mean. This makes it a better measure than the mean for highly skewed distributions. <span>Looking at median income is usually more informative than looking at mean income, for example. The sum of the absolute deviations of each number from the median is lower than the sum of absolute deviations from any other number. Note that whenever you c







    Flashcard 1636632759564

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    Question
    Mode is the [...] score in a distribution.
    Answer
    most frequently occurring

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    Subject 4. Measures of Center Tendency
    a median, it is imperative that you place the data in order first. It does not matter whether you order the data from smallest to largest or from largest to smallest, but it does matter that you order the data. Mode <span>Mode means fashion. The mode is the "most fashionable" number in a data set; it is the most frequently occurring score in a distribution and is used as a measure of central tendency. A set of data can have more than one mode, or even no mode. When all values are different, the data set has no mode. When a distribution has one value that appears most frequently, it i







    Flashcard 1636635118860

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    Question
    A set of data can have [...] mode, or even [...].
    Answer
    more than one

    no mode

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    Subject 4. Measures of Center Tendency
    ou order the data. Mode Mode means fashion. The mode is the "most fashionable" number in a data set; it is the most frequently occurring score in a distribution and is used as a measure of central tendency. <span>A set of data can have more than one mode, or even no mode. When all values are different, the data set has no mode. When a distribution has one value that appears most frequently, it is said to be unimodal. A data set that has two modes is said







    Flashcard 1636637478156

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    Question
    When all values are different, the data doen's have a [...]
    Answer
    mode

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    Subject 4. Measures of Center Tendency
    fashion. The mode is the "most fashionable" number in a data set; it is the most frequently occurring score in a distribution and is used as a measure of central tendency. A set of data can have more than one mode, or even no mode. <span>When all values are different, the data set has no mode. When a distribution has one value that appears most frequently, it is said to be unimodal. A data set that has two modes is said to be bimodal. The advantage of the mode a







    Flashcard 1636641410316

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    Question
    Which is the only measure of central tendency that can be used with nominal data.
    Answer
    Mode

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    Subject 4. Measures of Center Tendency
    to be unimodal. A data set that has two modes is said to be bimodal. The advantage of the mode as a measure of central tendency is that its meaning is obvious. Like the median, the mode is not affected by extreme values. Further, <span>it is the only measure of central tendency that can be used with nominal data. The mode is greatly subject to sample fluctuations and, therefore, is not recommended for use as the only measure of central tendency. A further disadvantage of the mode is that many di







    Flashcard 1636652420364

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    Question
    Mode helps to identify [...] and [...] of distribution.
    Answer
    shape and skewness

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    Subject 4. Measures of Center Tendency
    ric distributions. The mean is higher than the median in positively skewed distributions and lower than the median in negatively skewed distributions. Extreme values affect the value of the mean, while the median is less affected by outliers. <span>Mode helps to identify shape and skewness of distribution.<span><body><html>







    Flashcard 1636817308940

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    Question
    In addition to permitting ranking and addition or subtraction, ratio scales allow [...].
    Answer
    computation of meaningful ratios

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    In addition to permitting ranking and addition or subtraction, ratio scales allow computation of meaningful ratios.

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    Subject 2. Measurement Scales
    s in temperature, but a temperature of 30°F is not twice as warm as one of 15°F. Ratio Scale Ratio scales are like interval scales except that they have true zero points. This is the strongest measurement scale. <span>In addition to permitting ranking and addition or subtraction, ratio scales allow computation of meaningful ratios. A good example is the Kelvin scale of temperature. This scale has an absolute zero. Thus, a temperature of 300°K is twice as high as a temperature of 150°K. Two financial examples of ra







    Flashcard 1636819668236

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    Question
    In a frequency distribution It is important to consider [...] to be used.
    Answer
    the number of intervals

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    In a frequency distribution It is important to consider the number of intervals to be used. If too few intervals are used, too much data may be summarized and we may lose important characteristics; if too many intervals are used, we may not summarize enough.

    Original toplevel document

    Subject 3. Frequency Distributions
    that: Each observation can only lie in one interval. The total number of intervals will incorporate the whole population. The range for an interval is unique. This means a value (observation) can only fall into one interval. <span>It is important to consider the number of intervals to be used. If too few intervals are used, too much data may be summarized and we may lose important characteristics; if too many intervals are used, we may not summarize enough. A frequency distribution is constructed by dividing the scores into intervals and counting the number of scores in each interval. The actual number of scores and the percent







    Flashcard 1636834086156

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    Question
    The classes in a frequency distribution must be [...] and [...]
    Answer
    mutually exclusive

    of equal size.

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    data into a frequency distribution together with suggestions on constructing the frequency distribution. Identify the highest and lowest values of the observations. Setup classes (groups into which data is divided). <span>The classes must be mutually exclusive and of equal size. Add up the number of observations and assign each observation to its class. Count the number of observations in each class. This is called the class freque

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    Subject 3. Frequency Distributions
    by the total number of observations. Cumulative absolute frequency and cumulative relative frequency are the results from cumulating the absolute and relative frequencies as we move from the first to the last interval. <span>The following steps are required when organizing data into a frequency distribution together with suggestions on constructing the frequency distribution. Identify the highest and lowest values of the observations. Setup classes (groups into which data is divided). The classes must be mutually exclusive and of equal size. Add up the number of observations and assign each observation to its class. Count the number of observations in each class. This is called the class frequency. Data can be divided into two types: discrete and continuous. Discrete: The values in the data set can be counted. There are distinct spaces between the values, such as







    Flashcard 1637167795468

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    Question
    These values can be measured using sufficiently accurate tools to numerous decimal places.
    Answer
    Continuous data

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    ts of decimal places involved and (theoretically, at least) there are no gaps between permissible values (i.e., all values can be included in the data set). Examples would include the height of a person and the time to complete an assignment. <span>These values can be measured using sufficiently accurate tools to numerous decimal places.<span><body><html>

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    Subject 3. Frequency Distributions
    ed into two types: discrete and continuous. Discrete: The values in the data set can be counted. There are distinct spaces between the values, such as the number of children in a family or the number of shares comprising an index. <span>Continuous: The values in the data set can be measured. There are normally lots of decimal places involved and (theoretically, at least) there are no gaps between permissible values (i.e., all values can be included in the data set). Examples would include the height of a person and the time to complete an assignment. These values can be measured using sufficiently accurate tools to numerous decimal places. There are two methods that graphically represent continuous data: histograms and frequency polygons. 1. A histogram is a bar chart that displays a frequency distributi







    Flashcard 1637170154764

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    Question
    Examples [...] data would include the height of a person and the time to complete an assignment.
    Answer
    Continuous

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    an>Continuous: The values in the data set can be measured. There are normally lots of decimal places involved and (theoretically, at least) there are no gaps between permissible values (i.e., all values can be included in the data set). Examples would include the height of a person and the time to complete an assignment. These values can be measured using sufficiently accurate tools to numerous decimal places.<span><body><html>

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    Subject 3. Frequency Distributions
    ed into two types: discrete and continuous. Discrete: The values in the data set can be counted. There are distinct spaces between the values, such as the number of children in a family or the number of shares comprising an index. <span>Continuous: The values in the data set can be measured. There are normally lots of decimal places involved and (theoretically, at least) there are no gaps between permissible values (i.e., all values can be included in the data set). Examples would include the height of a person and the time to complete an assignment. These values can be measured using sufficiently accurate tools to numerous decimal places. There are two methods that graphically represent continuous data: histograms and frequency polygons. 1. A histogram is a bar chart that displays a frequency distributi







    Flashcard 1637172514060

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    Question
    [...] : The values in the data set can be measured.
    Answer
    Continuous

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    Continuous: The values in the data set can be measured. There are normally lots of decimal places involved and (theoretically, at least) there are no gaps between permissible values (i.e., all values can be included in the data set). Example

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    Subject 3. Frequency Distributions
    ed into two types: discrete and continuous. Discrete: The values in the data set can be counted. There are distinct spaces between the values, such as the number of children in a family or the number of shares comprising an index. <span>Continuous: The values in the data set can be measured. There are normally lots of decimal places involved and (theoretically, at least) there are no gaps between permissible values (i.e., all values can be included in the data set). Examples would include the height of a person and the time to complete an assignment. These values can be measured using sufficiently accurate tools to numerous decimal places. There are two methods that graphically represent continuous data: histograms and frequency polygons. 1. A histogram is a bar chart that displays a frequency distributi







    Flashcard 1637607935244

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    Question
    A class. is also called an [...]
    Answer
    interval

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    Subject 3. Frequency Distributions
    with individual numbers becomes laborious and messy. In such circumstances, it is neater and more convenient to summarize results into what is known as a frequency table. The data in the display is called a frequency distribution. <span>An interval, also called a class, is a set of values within which an observation falls. Each interval has a lower limit and an upper limit. Intervals must be all-inclusive and non-overlapping. A frequency distribution is a tabular display of data categor







    Flashcard 1641027865868

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    Question

    How do you calculate the range (Range = [...] )

    (second step in frequency distribution)

    Answer
    Maximum value − Minimum value

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    Frequency distribution steps
    Construction of a Frequency Distribution. Sort (in ascending order) Calculate the range (Range = Maximum value − Minimum value) Intervals creation (decide the number you will put in the frequency distribution, k.) Width determination ( interval width = Range/k.) Ad







    Flashcard 1641047002380

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    Question
    Starting from small K to larger, what give you the cue there are too many?
    Answer
    if a lot of the intervals are mostly empty

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    Flashcard 1641048837388

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    Question
    When choosing k we need to keep in mind that the purpose of a frequency distribution is to [...]
    Answer
    summarize the data.

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    Flashcard 1641051458828

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    Question
    The arithmetic mean can be likened to [...]
    Answer
    the center of gravity of an object.

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    Flashcard 1641053293836

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    Question
    How is the distance between the mean and each outcome called ?
    Answer
    deviation.

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    Flashcard 1641055128844

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    Question
    Mathematically, it is always true that the sum of the deviations around the mean equals [...]
    Answer
    0

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    Flashcard 1641056963852

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    Question
    Deviations from the arithmetic mean are important information because they indicate [...]
    Answer
    risk.

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    Flashcard 1641058798860

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    Question
    The concept of [...] forms the foundation for the more complex concepts of variance, skewness, and kurtosis
    Answer
    deviations around the mean

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    Flashcard 1641066138892

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    Question
    In an even-numbered sample, we define the median as the mean of the values of items occupying the [...] and [...] positions
    Answer
    n/2

    (n + 2)/2

    (the two middle items)

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    Flashcard 1641071643916

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    Question
    What does it mean that the median is less mathematically tractable than the mean.
    Answer
    Calculating the median is more complex, order the observations from smallest to largest, determine whether the sample size is even or odd and, on that basis, apply one of two calculations

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    Flashcard 1641074003212

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    Question
    Stock return data and other data from [...] distributions may not have a modal outcome
    Answer
    continuous

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    Flashcard 1641077673228

    Tags
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    Question
    The modal interval always has the [...] in the histogram.
    Answer
    highest bar

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    Flashcard 1641081343244

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    Question
    In the arithmetic mean, all observations are equally weighted by the factor [...]
    Answer
    1/n (or 1/N)

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    Flashcard 1641083178252

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    Question
    An average in which each observation is weighted by an index of its relative importance.
    Answer
    Weighted mean

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    Flashcard 1641085013260

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    Question
    The weighted mean ¯¯¯Xw , for a set of observations X1, X2, …, Xn with corresponding weights of w1, w2, …, wn is computed as:
    Answer

    \(\bar{X}_w = \displaystyle\sum_{i=1}^n W_iX_i\)


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    Flashcard 1641096023308

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    Question
    Market indexes are computed as [...]
    Answer
    weighted averages.

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    Flashcard 1641097858316

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    Question
    When we take a weighted average of forward-looking data, the weighted mean is called [...]
    Answer

    statusnot learnedmeasured difficulty37% [default]last interval [days]               
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    Flashcard 1641099693324

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    Question
    The probability-weighted average of the possible outcomes of a random variable.
    Answer

    statusnot learnedmeasured difficulty37% [default]last interval [days]               
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    Flashcard 1641108868364

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    Question
    Geometric mean formula

    G= [...]
    Answer

    G=n√X1X2X3…Xn

    with Xi ≥ 0 for i=1,2,…,n

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    Flashcard 1641111489804

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    Question
    A measure of central tendency computed by taking the nth root of the product of n non-negative values.
    Answer
    Geometric mean

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    Flashcard 1641115159820

    Tags
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    Question
    Se puede calcular la media geometrica si un valor es 0
    Answer
    si

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    Flashcard 1641116994828

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    Question
    How do you solve the condition for geometric mean when there are negative returns?
    Answer
    You add 1 to every return (-100% is as low as it can get) and substract 1 at the end

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    Flashcard 1641121451276

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    Question
    Because geometric mean returns use time series, we use a [...] in the RG
    Answer
    t indexing time as well

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    Flashcard 1641124334860

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    Question
    RG = [...]
    Answer
    T√(1+R1)(1+R2)…(1+RT) -1

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    Flashcard 1641126956300

    Tags
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    Question
    Geometric mean returns are also referred to as [...]
    Answer
    compound returns.

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    Flashcard 1641129577740

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    Question
    the geometric mean is always [...] to the arithmetic mean.
    Answer
    less than or equal

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    Flashcard 1641131412748

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    Question
    The only time the two means (Geometric and Arithmetic) will be equal is when [...]
    Answer
    all the observations in the series are the same

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    Flashcard 1641133509900

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    Question
    The difference between the arithmetic and geometric means increases with [...]
    Answer
    the variability in the period-by-period observations.

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    Flashcard 1641140325644

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    Question
    A type of weighted mean computed by averaging the reciprocals of the observations, then taking the reciprocal of that average.
    Answer
    Harmonic Mean

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    Flashcard 1641147141388

    Tags
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    Question
    The harmonic mean may be viewed as a special type of weighted mean in which an observation’s weight is [...]
    Answer
    inversely proportional to its magnitude.

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    Flashcard 1641148976396

    Tags
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    Question
    The periodic investment of a fixed amount of money.
    Answer
    Cost averaging

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    Flashcard 1641158937868

    Tags
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    Question
    What is a good example on when to use the Harmonic Mean?
    Answer
    Cost Averaging (lo que hiciste con Javier)

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    Flashcard 1641167588620

    Tags
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    Question
    If talking about a Survey is it a population or a sample?
    Answer
    Sample

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    Flashcard 1641171520780

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    Question
    When in a histograms there are only midpoints showing how do you find out the interval width?
    Answer
    substract any Midpoint - Midpoint-1 and you have the interval width.


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    Flashcard 1641173355788

    Tags
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    Question
    What is class mark in a Frequency distribution?
    Answer
    The average of the values of the class limits

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    Flashcard 1641185414412

    Tags
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    Question
    Given a set of observations, how many observations lie below the 33th percentile?
    Answer
    33%

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    Flashcard 1641189870860

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    Question
    We know that the median divides a distribution in half. We can define other dividing lines that split the distribution into smaller sizes called [...]
    Answer
    Quantiles

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    Flashcard 1641193540876

    Tags
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    Question

    The value of Ly may or may not be a [...]

    Answer
    whole number.

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    Flashcard 1641195375884

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    Question

    In general, as the sample size increases, the percentile location calculation becomes [...]

    Answer
    more accurate;

    in small samples it may be quite approximate.​​​​​​​

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    Flashcard 1641197210892

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    Question

    When the location, Ly, is a whole number, the location corresponds to [...]

    Answer
    an actual observation.

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    Flashcard 1641199045900

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    Question

    When Ly is not a whole number or integer, Ly lies [...]

    Answer
    between the two closest integer numbers

    (one above and one below)​​​​​​​

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    Flashcard 1641200880908

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    Question

    When Ly is not a whole number or integer, Ly lies between the two closest integer numbers (one above and one below), and we use [...] between those two places to determine Py.


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    Flashcard 1641202715916

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    Question

    The estimation of an unknown value on the basis of two known values that bracket it, using a straight line between the two known values.


    statusnot learnedmeasured difficulty37% [default]last interval [days]               
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    Flashcard 1644299422988

    Tags
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    Question
    The mean tells us where returns are centered but, to completely understand an investment, we also need to know how returns are [...]
    Answer
    dispersed around the mean.

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    Flashcard 1644301257996

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    Question
    [...] is the variability around the central tendency.
    Answer

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    Flashcard 1644304928012

    Tags
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    Question
    The most common measures of dispersion: mean absolute deviation, [...], range and [...]
    Answer
    variance

    standard deviation.

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    Flashcard 1644306763020

    Tags
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    Question
    The amount of variability present without comparison to any reference point or benchmark.
    Answer
    Absolute Dispersion

    statusnot learnedmeasured difficulty37% [default]last interval [days]               
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    Flashcard 1644308598028

    Tags
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    Question
    The [...] or [...] of return is often used as a measure of risk pioneered by Nobel laureate Harry Markowitz.
    Answer
    variance

    standard deviation

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    Flashcard 1644310695180

    Tags
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    Question
    The simplest of all the measures of dispersion is [...]
    Answer
    range

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    Flashcard 1644312005900

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    Question
    Range can be computed with [...] or [...] data.
    Answer
    interval

    ratio

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    Flashcard 1644315413772

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    Question
    The difference between the maximum and minimum values in a dataset.
    Answer
    Range

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    Flashcard 1644317248780

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    Question
    • Range = [...]

    Answer
    Maximum value – Minimum value  

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    Flashcard 1644319083788

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    Question

    how the data are distributed is called the [...]

    Answer
    shape of the distribution

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    Flashcard 1644322753804

    Tags
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    Question
    The interquartile range is a [...]
    Answer
    distance measure of dispersion

    statusnot learnedmeasured difficulty37% [default]last interval [days]               
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    Interquartile Range
    Another distance measure of dispersion that we may encounter, the interquartile range, focuses on the middle rather than the extremes. The interquartile range (IQR) is the difference between the third and first quartiles o







    Flashcard 1644327472396

    Tags
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    Question
    The interquartile range (IQR) is the difference between [...]
    Answer
    the third and first quartiles of a data set

    statusnot learnedmeasured difficulty37% [default]last interval [days]               
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    Interquartile Range
    Another distance measure of dispersion that we may encounter, the interquartile range, focuses on the middle rather than the extremes. The interquartile range (IQR) is the difference between the third and first quartiles of a data set: IQR = Q 3 − Q 1 . The IQR represents the length of the interval containing the middle 50 percent of the data, with a larger interquartile range indicating greater dispersion, all else







    Flashcard 1644329831692

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    Question
    IQR = [...]
    Answer
    Q3Q1

    statusnot learnedmeasured difficulty37% [default]last interval [days]               
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    Interquartile Range
    span>Another distance measure of dispersion that we may encounter, the interquartile range, focuses on the middle rather than the extremes. The interquartile range (IQR) is the difference between the third and first quartiles of a data set: <span>IQR = Q 3 − Q 1 . The IQR represents the length of the interval containing the middle 50 percent of the data, with a larger interquartile range indicating greater dispersion, all else equal.</sp







    Flashcard 1644332190988

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    Question
    The IQR represents the length of the interval containing [...] of the data,
    Answer
    the middle 50 percent

    statusnot learnedmeasured difficulty37% [default]last interval [days]               
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    scheduled repetition interval               last repetition or drill

    Interquartile Range
    ce measure of dispersion that we may encounter, the interquartile range, focuses on the middle rather than the extremes. The interquartile range (IQR) is the difference between the third and first quartiles of a data set: IQR = Q 3 − Q 1 . <span>The IQR represents the length of the interval containing the middle 50 percent of the data, with a larger interquartile range indicating greater dispersion, all else equal.<span><body><html>







    Flashcard 1644334550284

    Tags
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    Question
    All else equal, a larger interquartile range indicaties [...]
    Answer
    greater dispersion.

    statusnot learnedmeasured difficulty37% [default]last interval [days]               
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    Interquartile Range
    le rather than the extremes. The interquartile range (IQR) is the difference between the third and first quartiles of a data set: IQR = Q 3 − Q 1 . The IQR represents the length of the interval containing the middle 50 percent of the data, <span>with a larger interquartile range indicating greater dispersion, all else equal.<span><body><html>







    Flashcard 1644340579596

    Tags
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    Question

    With reference to a sample, the mean of the absolute values of deviations from the sample mean.

    Answer
    Mean Absolute Deviation

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    Flashcard 1644351851788

    Tags
    #has-images #reading-8-statistical-concepts-and-market-returns
    Question

    The mean absolute deviation formula


    MAD = [...]

    Answer

    statusnot learnedmeasured difficulty37% [default]last interval [days]               
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    Subject 6. Measures of Dispersion
    artile range. Example The range of the numbers 1, 2, 4, 6,12,15,19, 26 = 26 - 1 = 25 Recall that the deviation from the arithmetic mean is the distance between the mean and an observation in the data set. <span>The mean absolute deviation (MAD) is the arithmetic average of the absolute deviations around the mean. In calculating the MAD, we ignore the signs of deviations around the mean. Remember that the sum of all the deviations from the mean is equal to







    Flashcard 1644353424652

    Tags
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    Question

    The mean absolute deviation (MAD) is the [...] of [...]

    Answer
    arithmetic average

    the absolute deviations around the mean.

    statusnot learnedmeasured difficulty37% [default]last interval [days]               
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    Subject 6. Measures of Dispersion
    artile range. Example The range of the numbers 1, 2, 4, 6,12,15,19, 26 = 26 - 1 = 25 Recall that the deviation from the arithmetic mean is the distance between the mean and an observation in the data set. <span>The mean absolute deviation (MAD) is the arithmetic average of the absolute deviations around the mean. In calculating the MAD, we ignore the signs of deviations around the mean. Remember that the sum of all the deviations from the mean is equal to







    Flashcard 1644356046092

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    Question

    In calculating MAD, we ignore [...] of the deviations around the mean.

    Answer
    the signs

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    Flashcard 1644357881100

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    Question

    One technical drawback of MAD is that it is difficult to manipulate mathematically compared with the [...] .

    Answer
    variance

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    Flashcard 1644362075404

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    Question

    A second approach to the treatment of deviations adding up to 0 is to [...]

    Answer
    square them.

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    Flashcard 1644363910412

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    Question

    The expected value of squared deviations from a random variable’s expected value.

    Answer
    Variance

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    Flashcard 1644366007564

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    Question

    [...] is defined as the average of the squared deviations around the mean

    Answer
    Variance

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    Flashcard 1644367842572

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    Question

    [...] is the positive square root of the variance.


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    Flashcard 1644369677580

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    Question

    The positive square root of the variance; a measure of dispersion in the same units as the original data.


    statusnot learnedmeasured difficulty37% [default]last interval [days]               
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    Flashcard 1644371512588

    Tags
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