Q9 Answer C
For finding the odds for; without following the formula; we should think of odds for as
Probability the event will occur : Probability the event will NOT occur
=> Probability that...
Type: Posts; User: DG Mod
Q9 Answer C
For finding the odds for; without following the formula; we should think of odds for as
Probability the event will occur : Probability the event will NOT occur
=> Probability that...
Q8 Answer A
First arrange the returns in ascending order
-10%, -5%, 2%, 3%, 4%, 7%, 8%, 10%, 12%, 18%
Now we need to find the position at which we will get the 4th quintile.
4th quintile is...
Q7 Answer C
Will the answer be the arithmetic mean of the price for the 3 periods?
Let’s find the arithmetic mean, which will be ($100+$125+$80) = $305/3 = $101.67
Let’s try to build the...
Q6 Answer B
Rather than getting into complication, let’s work from basic reasoning.
Let’s assume that you had invested $100 in the stock at T=0.
Since the first year return is 100%, the...
Q5 Answer A
First Step: Find the semi-annual yield
Semi-annual yield = (1+EAY)^(1/2)– 1
=> Semi-annual yield = (1.05)^0.5 – 1 = 2.4695%
Second Step: Multiply the semi-annual yield by 2 to get...
Q4 Answer B
Step 1: Assume the face value to be $100, we would like to find out the discount at which the T bill is trading
3.5 % = (D/100) * (360/120) => 3.5% = (D/100) * 3
=> D = 3.5% *...