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SGrade/CFA Level 1/Quantitative Methods — Core Concepts

CFA L1 · 25 questions

Quantitative Methods — Core Concepts Practice Questions

This topic covers the essential principles of Quantitative Methods as tested in the CFA Level 1 exam.

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Sample questions

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Question 1Foundation

An analyst is examining the daily price movements of a stock. Over a five-day period, the closing prices were $50, $52, $48, $55, and $47. What is the range of these closing prices?

A$7
B$8
C$9

Examiner's Design Intent

Tests candidate's ability to apply basic descriptive statistics to financial data and avoid common calculation errors

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Question 2Foundation

Consider the following set of annual stock returns for a particular company: 5%, -2%, 8%, 5%, 12%. What is the mode of this dataset?

A5%
B8%
C12%

Examiner's Design Intent

Tests fundamental understanding of descriptive statistics definitions and ability to distinguish between measures of central tendency under exam pressure

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Question 3Foundation

A distribution of monthly returns for a small-cap stock is observed to have a long tail to the right. Which of the following statements best describes this distribution?

AThe distribution is negatively skewed.
BThe mean is typically greater than the median.
CThe majority of the observations are in the right tail.

Examiner's Design Intent

Test fundamental understanding of skewness direction and its effect on central tendency measures - a core building block for advanced statistical concepts

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+ 22 more Quantitative Methods — Core Concepts questions in this set

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More CFA L1 topics

Ethical and Professional Standards — Core ConceptsEconomics — Core ConceptsFinancial Statement Analysis — Core ConceptsCorporate Issuers — Core ConceptsEquity Investments — Core ConceptsFixed Income — Core Concepts
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