CFA Practice Question

There are 410 practice questions for this study session.

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%.

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
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