BA 323 NIELANDER EXAM ONE CHAPTERS
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QUESTIONS AND ANSWERS VIEW AHEAD
PREP MATERIAL SOLVED
⩥ Question 191: Which factor of the Fundamental Law is easiest to
improve?
A) Performance
B) Skill
C) Breadth
D) Information Coefficient.
Answer: Correct Answer: C
⩥ Question 194: Which of the following statements about Q learning is
true?
A) A low value of alpha means that previous Q value is more strongly
preserved.
B) A low value of alpha means that new Q value is more strongly
preserved.
C) A low value of gamma means that we value later rewards very
significantly
D) None of the above.
Answer: Correct Answer: A
,⩥ Question 204: Alice's portfolio has the same mean performance alpha,
as well as the same volatility as Bob's portfolio. Alice makes 4 trades per
year and Bob makes 64 trades per year. Comparing each of their skill
levels in making trades we can say that:
A) Alice is 4 times more skillful than Bob
B) Alice is 16 times more skillful than Bob
C) Bob is 4 times more skillful than Alice
D) Alice and Bob have the same skill level.
Answer: Correct Answer: A
⩥ Question 209: Which of the following is NOT assumed by the
efficient market hypothesis?
A) There is a large number of investors participating in the market.
B) New information arrives predictably.
C) A stocks price quickly adjust to any new information.
D) A stocks current price reflects all information about that stock..
Answer: Correct Answer: B
⩥ Question 227: Select the FALSE statement about technical analysis
below:
A) As compared to fundamental analysis, technical analysis works better
on smaller time scales
, B) An example using technical analysis may take into account stock
price, volume, and book value
C) Technical analysis strategies are highly utilized in Hedge Funds
D) Sharpe ratio, price momentum, and Bollinger Band position would
all be considered indicators in technical analysis.
Answer: Correct Answer: B
⩥ Question 228: Tom bought 1 option for AAPL of which the strike
price is $110. The price of this option is $5. Suppose before the
expiration date, the stock price of AAPL went up to $120 and Tom
decided to exercise his options, and then sell the stocks at the $120
position immediately. What is the profit from this series of trades made
by Tom? Assume no extra fees such as commissions.
A) $500
B) $5
C) $1000
D) $995.
Answer: Correct Answer: A
⩥ Question 232: Which of the following is NOT a component that
defines a Markov Decision Problem.
A) Set of Actions A
B) Probabilistic Function P
C) Transition Function T
1 3 16 17 CLOSING SCRIPT UPDATED
QUESTIONS AND ANSWERS VIEW AHEAD
PREP MATERIAL SOLVED
⩥ Question 191: Which factor of the Fundamental Law is easiest to
improve?
A) Performance
B) Skill
C) Breadth
D) Information Coefficient.
Answer: Correct Answer: C
⩥ Question 194: Which of the following statements about Q learning is
true?
A) A low value of alpha means that previous Q value is more strongly
preserved.
B) A low value of alpha means that new Q value is more strongly
preserved.
C) A low value of gamma means that we value later rewards very
significantly
D) None of the above.
Answer: Correct Answer: A
,⩥ Question 204: Alice's portfolio has the same mean performance alpha,
as well as the same volatility as Bob's portfolio. Alice makes 4 trades per
year and Bob makes 64 trades per year. Comparing each of their skill
levels in making trades we can say that:
A) Alice is 4 times more skillful than Bob
B) Alice is 16 times more skillful than Bob
C) Bob is 4 times more skillful than Alice
D) Alice and Bob have the same skill level.
Answer: Correct Answer: A
⩥ Question 209: Which of the following is NOT assumed by the
efficient market hypothesis?
A) There is a large number of investors participating in the market.
B) New information arrives predictably.
C) A stocks price quickly adjust to any new information.
D) A stocks current price reflects all information about that stock..
Answer: Correct Answer: B
⩥ Question 227: Select the FALSE statement about technical analysis
below:
A) As compared to fundamental analysis, technical analysis works better
on smaller time scales
, B) An example using technical analysis may take into account stock
price, volume, and book value
C) Technical analysis strategies are highly utilized in Hedge Funds
D) Sharpe ratio, price momentum, and Bollinger Band position would
all be considered indicators in technical analysis.
Answer: Correct Answer: B
⩥ Question 228: Tom bought 1 option for AAPL of which the strike
price is $110. The price of this option is $5. Suppose before the
expiration date, the stock price of AAPL went up to $120 and Tom
decided to exercise his options, and then sell the stocks at the $120
position immediately. What is the profit from this series of trades made
by Tom? Assume no extra fees such as commissions.
A) $500
B) $5
C) $1000
D) $995.
Answer: Correct Answer: A
⩥ Question 232: Which of the following is NOT a component that
defines a Markov Decision Problem.
A) Set of Actions A
B) Probabilistic Function P
C) Transition Function T
