An indefinite integral of a polynomial function is
What is the 40th term in the following series: 4, 14, 30, 52, …?
Suppose that f(x) and g(x,y) are functions. What is the partial derivative of f(g(x,y)) with respect to y?
An asset price S is lognormally distributed if:
Let N(.) denote the cumulative distribution function and suppose that X and Y are standard normally distributed and uncorrelated. Using the fact that N(1.96)=0.975, the probability that X ≤ 0 and Y ≤ 1.96 is approximately
You work for a brokerage firm that charges its client x per share. The volume of trade of a client of type A depends on the per share commission in the following manner. If the commission is x, the client of type A will trade e-ax shares on average each week. What is the optimal commission x that maximizes the income from client A, noting that a is greater than zero?
If the annual volatility of returns is 25% what is the variance of the quarterly returns?
You invest $2m in a bank savings account with a constant interest rate of 5% p.a. What is the value of the investment in 2 years time if interest is compounded quarterly?
The correlation between two asset returns is 1. What is the smallest eigenvalue of their correlation matrix?
A 2-year bond has a yield of 5% and an annual coupon of 5%. What is the Modified Duration of the bond?
