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Quantitative Finance Questions and Some Solutions
Quantitative Finance Questions and Some Solutions
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Quantitative Pro ciency Test ▶ Take the Test
▶
Quantitative Pro ciency Test
Information
This section of the quiz will test your mathematical pro ciency.
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Question 1
Incorrect
Mark 0 out of 1
Select one:
0
1
1/e
Question 2
Incorrect
Mark 0 out of 1
−
If f : ( π /6, π /6) →ℝis de ned by
x
f (x) = 2 tan(3x) for every x ∈ −
( π /6, π /6),
then f ′ (0) is
Select one:
0
2π
3
ln 2
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Question 3
Incorrect
Mark 0 out of 1
Select one:
e/2
0
1/e
Question 4
Correct
Mark 1 out of 1
Select one:
e−1
cos 1
1 − e− 1
e− sin 1
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Question 5
Correct
Mark 1 out of 1
is
Select one:
∞
1/2
Question 6
Incorrect
Mark 0 out of 1
Select one:
A− BT (I + C)−
1 1
AB(I + C)
A− B(I + C)−
1 1
( +I C)− BA−
1 1
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Question 7
Incorrect
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Let A, B and C be square invertible matrices of the same size. If C has no eigenvalue
equal to -1, then
(AB + ACB)−1 is equal to
Select one:
( + I C)− B− A−
1 1 1
( + I C)− BA−
1 1
B− (I + C)− A−
1 1 1
A− B(I + C)−
1 1
Question 8
Incorrect
Mark 0 out of 1
Let f : (0, ) ∞ →
(0, ∞
) and g : (0, ∞) → ℝ be de ned by
f (x) := x for every x
1
∈
(0, ) ∞
and
g(x) := ln x for every x (0, ∈
). ∞
Consider the following statements:
[i.] f is one-to-one
[ii.] f is onto
[iii.] g is one-to-one
[iv.] g is onto
Select one:
None of the statements
i and iii
All of the statements
i, ii. and iii.
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Question 9
Correct
Mark 1 out of 1
Select one:
y(t) = e−4t
y(t) = 5
y(t) = 4e +
t
e−4t
t
y(t) = 4e
Question 10
Incorrect
Mark 0 out of 1
π
The complex number z = 2e i 4 can also be written as
Select one:
z ‾ + √2‾i.
= √2
z ‾i.
= √2
z = 2 + 2i .
z ‾.
= √2
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Question 11
Incorrect
Mark 0 out of 1
Select one:
converges to e 3
converges to e − 1
diverges to ∞
converges to e 3 − 1
Question 12
Incorrect
Mark 0 out of 1
Select one:
converges to 5/4
diverges to ∞
converges to 1/4
converges to 1
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Question 13
Correct
Mark 1 out of 1
An island consists of four kinds of people: Tetas, Jekas, Frekas and Hekas. The
following information is known:All Jekas are Tetas
Some (but not all) Hekas are Jekas
No Frekas are TetasConsider the following statements:
[i.] All Hekas are Tetas
[ii.] Some Hekas are Tetas
[iii.] No Frekas are Jekas
[iv.] No Frekas are Hekas
Select one:
All the statements
Only iii.
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Question 14
Correct
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An island consists of four kinds of people: Tetas, Jekas, Frekas and Hekas. The
following information is known:
Which of these statements are necessarily true based only on the information
above?
Select one:
Only i
All the statements
Question 15
Correct
Mark 1 out of 1
Let f : ℝ → ℝ be de
2
ned by
f ((x, y)) := x
2
+ 2y
2
−3xy, for every x, y) ∈ℝ 2
.
The value of fx ((0, 0)) + fy ((0, 0)) + fxy ((0, 0)) is:
Select one:
3
0
Unde ned
-3
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Question 16
Correct
Mark 1 out of 1
Evaluate
∫ ∫x
0
1 1
sin(y ) dydx
2
Select one:
1 − sin 1
1
2
(1 − cos 1)
cannot be determined
cos 1
Question 17
Incorrect
Mark 0 out of 1
Evaluate
∞ ∞
∫ ∫
0 y 2ye
−x 3 dxdy
by changing the order of the integral. The answer is
Select one:
1
1
3
1
2
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Question 18
Incorrect
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Let
I := ∬D 2 dA,
where D is the interior of the region bounded by the curves y = x 2 $ and y = x 3
with x ≥ 0 and y ≥ 0 .
The value of I is
Select one:
3/4
2/3
1/6
1/3
Question 19
Correct
Mark 1 out of 1
For each n = 1, 2, 3, …, de ne
fn (x) := 1+2n nx2 x 2 , for every x
2 3
∈ ℝ.
Then the functionf de ned by
f (x) := lim fn (x)
→
n ∞
∈ ℝ and is equal to
exists for each x
Select one:
f (x) = 0
f (x) = x 2
f (x) = x
f (x) = x
2
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Question 20
Incorrect
Mark 0 out of 1
Select one:
None of the functions.
u 1 and u 3
Only u 3 .
All the functions.
Information
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Question 21
Correct
Mark 1 out of 1
A class has 25 students of which 10 are boys (you may assume that the other 15 are
girls). The class average (mean) height is x̄ metres and the mean height for boys is
x̄B metres. The mean height for girls x̄G is
Select one:
25x̄+10x̄B
15
15x̄−10x̄B
10
15x̄−10x̄B
25
25x̄−10x̄B
15
Question 22
Correct
Mark 1 out of 1
Select one:
241.15
622.00
58155.11
386884.00
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Question 23
Correct
Mark 1 out of 1
Select one:
{1,2,3,4,5,6,7,8,9,10}
{2,3,4,5,6,7,8,10}
{2,3,4,5,6,7,8,9,10}
{1,3,5,7,9,...}
Question 24
Correct
Mark 1 out of 1
In a class of 30 students, there are 17 girls and 13 boys. Five are 'A' students, and
three of these 'A' students are girls. If a student is chosen at random, what is the
probability of choosing a girl or an 'A' student?
Select one:
22/30
19/30
5/30
17/30
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Question 25
Correct
Mark 1 out of 1
A jar contains 4 red balls and 7 blue balls. Two balls are drawn at random from the
jar without replacement. What is the probability that exactly one of the balls drawn
is red?
Select one:
4/11
28/55
28/121
1/2
Question 26
Correct
Mark 1 out of 1
A bag contains 20 balls: 8 red balls and 12 blue balls. Six of these balls are classi ed
as "heavy", and three of the heavy balls are red. If a ball is chosen at random from the
bag, what is the probability that it is red or heavy?
Select one:
14/30
8/30
11/20
6/30
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Question 27
Correct
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fX (x) =
xe− x
9
3
0 ≤x<∞
{0 elsewhere.
Select one:
𝔼(X ) = 3, Var(X ) = 3
𝔼(X ) = 3, Var(X ) = 9
Question 28
Correct
Mark 1 out of 1
Find 𝔼(X ) and Var(X ).
Select one:
𝔼(X ) = 1, Var (X ) = 1
𝔼(X ) = 0, Var(X ) = 2
𝔼(X ) = 0, Var (X ) = 1
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Question 29
Correct
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fX (x) =
ce−x 0 ≤x<∞
{0 elsewhere
where c > 0 is a constant. Find ℙ(X > 100).
Select one:
e− 1
e− 100
1 − e− 1
1 − e− 100
Question 30
Incorrect
Mark 0 out of 1
The random variables X and Y have the following joint probability density function:
1
0 < y < 1, 0 < x < 2
fXY (x, y) =
{ 0
2
elsewhere.
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Question 31
Incorrect
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The random variables X and Y have the following joint probability density function:
fXY (x, y) =
4xy 0 < x < 1, 0 < y < 1
{0 elsewhere.
Select one:
0
1/3
1/2
1/4
Question 32
Incorrect
Mark 0 out of 1
The random variables X and Y have the following joint probability density function:
fXY (x, y) =
e−x−y 0 < x < ∞, 0 < y < ∞
{0 elsewhere.
1
0
e− 1
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Question 33
Correct
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X
Find 𝔼( ) and Var( ). X
Select one:
𝔼(X ) = 1, Var (X ) = 2
𝔼(X ) = e, Var(X ) = e 2
𝔼(X ) = 2, Var(X ) = 2
𝔼(X ) = 0, Var(X ) = 1
Question 34
Incorrect
Mark 0 out of 1
Find ℙ(X < 2) .
Select one:
1/8
1/2
3/4
1/4
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Question 35
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, ,
Let X1 X2 X3 be a random sample from the distribution of the random variable X
with an exponential distribution with mean β : >0
De ne the following estimators for β:
:=
β1̂
X1 +X2 +X3
, β2 ̂ := X1 + X2 + X3 , andβ3̂ := 37 X1 + 47 X2
3
Rank the estimators from the one with the smallest variance to the one with the
largest variance.
Select one:
β2̂ , β3̂ , β1̂
β3̂ , β1̂ , β2̂
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Question 36
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3
2 3 ̂ :=
, λ2 X 1 + X2 + X
3, and λ3̂ :=
1
7
X 1 +
3
7
X 2
Rank the estimators from the one with the smallest variance to the one with the
largest variance.
Select one:
λ1̂ , λ2̂ , λ3̂
λ2̂ , λ3̂ , λ1̂
Question 37
Correct
Mark 1 out of 1
Let X1 , . . . , Xn (n ≥
2) be a random sample from the distribution of the random
variable X with a Poisson distribution with rate λ > 0 :
De ne the following estimators for λ:
λ1̂ :=
1
n ∑ni =1
Xi 2 ̂ :=
, λ2
1
n ∑ni
=1
Xi , and λ̂
3 :=
1
7
X 1 +
3
7
X 2
Select one:
All of them
Only λ2̂
λ2̂ and λ3̂
None of them
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Question 38
Correct
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Let 1X ,...,X
36 be a random sample from a normal distribution with unknown
mean μ and known variance σ 2 = 121
. A sample 1 36 is collected and the x ,...,x
sample mean from this sample is calculated to be . Based on this sample, a x̄ = 22
95% con dence interval for μ is
Select one:
(22, ∞)
(0,22)
(0, ∞)
(18.41,25.59)
Question 39
Incorrect
Mark 0 out of 1
Let 1X ,...,X
15 be a random sample from a normal distribution with unknown
mean μ and known variance σ 2 = 12
. Consider the following hypotheses:
H : = 10, H : > 10.
0 μ 1 μ
A sample 1 x ,...,x
15 is collected and the sample mean from this sample is
calculated to be x̄ = 12 z
. The test statistic and -value for testing these p p
hypotheses (UMP) based on this sample are:
Select one:
z = 2.24, p = 1.25%
z = 2.33, p = 1%
z = −2.24, p = 1.25%
z = 2.24, p = 2.50%
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Question 40
Incorrect
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The random variables X and Y are believed to be linearly related by the equation
Y = a + bX + ϵ,
where a and b are constants and ϵ is a mean zero, normally distributed error term.
The following sample of pairs (x, y) is collected:
x 65 78 52 82 92 89 73 98 56 76
y 39 43 21 64 57 47 27 75 34 52
Using the method of least squares, calculate the values of a and b to 2 decimal
places.
Select one:
a = 12.06, b = −1.12
a = −24.58, b = 0.93
a = 0, b = 1
a = 23.45, b = 1.05
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