Accounting Risk & Return Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is the correct formula for the arithmetic mean?

Question 2 2. What is the correct formula for calculating an investment dollar amount return?

Question 3 3. Which of the following is NOT a property of the Normal Distribution?

Question 4 4. In a certain video game you wish to be in the top 0.15% of the scores. Assuming that the scores are normally distributed with a mean score of 25,460 and a standard deviation of 570, what is the score you need to achieve?

Question 5 5. Which of the following is TRUE of a percentage return?

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Question 6 6. The lifespan of a certain battery is measured in cycles. A manufacturer claims that the average number of cycles for their battery is 2000 with a standard deviation of 100, and the number of cycles is distributed normally. You wish to buy a battery from this manufacturer. What is the probability that the battery will last between 1900 and 2200 cycles?

Question 7 7. What is the arithmetic average of returns totaling 10%, 15%, and 25%?

Question 8 8. Which of the following is TRUE of geometric and arithmetic average returns?

Question 9 9. How would you define the rate of return?

Question 10 10. Karen bought her house in 1974 for $85,000. In 2016, it was worth $750,000. What's the rate of return on Karen's investment?

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Question 11 11. If Sam has annual investment returns for the last three years of 5%, 10%, and 1%, then what is the geometric average of his returns?

Question 12 12. Which of the following is NOT a benefit in knowing the rate of return of an investment?

Question 13 13. What are the two major numbers needed to calculate the rate of return?

Question 14 14. You are creating a tree house and have made the doorway into the structure 71 inches tall. Suppose the average height of adult males is 68 inches with a standard deviation of 3 inches. What percentage of men will have to bend their heads to get into the house?

Question 15 15. A distribution of data has a mean of 15 and a standard deviation of 2. How many standard deviations away from the mean is a value of 13?

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Question 16 16. What is the formula for calculating the percentage return of an investment?

Question 17 17. The tail lengths of a certain animal are normally distributed with a mean length of 1.5 feet and a standard deviation of 3 inches. What percentage of these animals have a tail that is at most one foot long?

Question 18 18. If Bob buys a share of stock for $112 and sells it for $145 while never receiving a dividend, then what is his percentage return?

Question 19 19. Which of the following statements is correct regarding a high dollar amount return?

Question 20 20. Which of the following is TRUE of using the arithmetic average instead of the geometric average?

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Question 21 21. The percentage amount of the rate of return reflects either a _____ on your initial investment.

Accounting Risk & Return Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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