CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

The following table gives a stock price, dividend, and percentage return for 10 months.

If one were to construct a frequency histogram for the stock prices using 3 classes, what percentage of stocks would fall in the second stock price interval?
A. 20%
B. 30%
C. 40%
Explanation: Using 3 intervals, the second interval would be stock prices from $70.70 to $73.5; there are 3, so the relative frequency is 30%.

User Contributed Comments 6

User Comment
RichWang Width of interval = (76.3 - 69.5) / 3 = 2.27
Second interval starts from 69.5 + 2.27 = 71.77
Second interval ends at 71.77 + 2.27 = 74.04
There are 4 prices in this interval (72.5, 73.6, 73.7 and 73).
So relative frequency is 4 / 10 = 40%.
Can anyone help to explain?
Janey RichWang the lowest price is 67.9 NOT 69.5
lourens I fell into same trap of using 69 .5
GinnyB Don't forget 67.9.

76.3-67.9 = 8.4
8.4 / 3 = 2.8

Interval one: 67.9 - 70.7
Interval two: 70.8 - 73.5 (3/10)
cfaeater I didn't read the question properly. Schoolboy error.
Murtadha cfaeater, I feel you..
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