- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 8. Probability Concepts
- Subject 1. Introduction

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**CFA Practice Question**

An experiment consists of observing the total rate of return for the stocks in a portfolio for 2014. Let Y be the percentage total return rate for a stock. Let event A be the event that the total return rate for a stock in 2014 be greater than 1%. What is the sample space for this experiment?

A. S = {y|y>1}

B. S = {y|y>=1}

C. S = {y|y>=-1}

**Explanation:**The sample space gives us the possible outcomes for a stock's return rate. The return rate for a stock can be either positive or negative but cannot be less than -100%.

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**User Contributed Comments**
18

User |
Comment |
---|---|

Carol1 |
Good question, since stock doesn't have negative value. |

treakj |
Good Question.. |

achu |
Tricky and nasty question. |

Yurik74 |
sample space is the set of all possible outcomes of an experiment. For example, for tossing a single six-sided die, the sample space is {1, 2, 3, 4, 5, 6}. |

LordHux |
still don't get it, please help! |

jpducros |
Percentage return of a stock is between -100% and + infinity. -100% when the stock price goes to 0 and + infinity when the stock price goes very high...so y is necessarily >=-100% or >= -1 |

mandig |
the question is really testing |

showmethemoney |
btw who uses the expression 'sample space'?....... |

screwjack |
Statisticians |

viruss |
Yes very good question ... I felt for it ;) |

farhan92 |
cheeky question this! |

Varun546 |
Then why does the question restrict to ...only those with greater than 1% return. I don't get the answer |

deathscyte |
tricky question definitely should read carefully. |

tisch187 |
wont be on the exam either lol good to know though i guess |

whatthehll |
very unnescessary |

iliavko |
nowhere is Schweser.. These questions are suspicious! |

odum612 |
OZZY612: the question is unfriendly, but I will not give up on it. |

wenhu |
very good question |