Mock test 1

Finance Junkie
Posts: 89
Joined: Sat Sep 22, 2012 12:35 pm

Mock test 1

Postby AMITAG1990 » Thu Nov 15, 2012 8:51 pm

An investment manager has USD 100mn to invest. He can choose either of three unknown stocks. One of the stocks will give him a return of 100% in 3 years. The other two stocks will give 0 returns in 4 years and 5 years respectively. If we assume that the manager is equally likely to choose all the three stocks at all points of time what is the expected length of time in which the manager doubles his money?
Choose one answer.
a. 9 years Incorrect
b. 4.5 years Incorrect
c. 12 years Correct
d. 6 years

Please solve this ..

Return to “FRM Part I”



Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to and we will rectify it.