When a number is written with a fraction as an exponent, such as , which of the following is the correct computation?
Answer : A
I have a portfolio of two stocks. The weights are 60% and 40% respectively, the volatilities are both 20%, while the correlation of returns is 100%. The volatility of my portfolio is
Answer : C
The quarterly compounded rate of return is 6% per annum. What is the corresponding effective annual return?
Answer : C
What is the angle between the following two three dimensional vectors: a=(1,2,3), b=(-4,2,0)?
Answer : A
Find the first-order Taylor approximation p(x) for the function: at the point .
Answer : B
A bond has modified duration 6 and convexity 30. Find the duration-convexity approximation to the percentage change in bond price when its yield increases by 5 basis points
Answer : D
The Lagrangian of a constrained optimisation problem is given by L(x,y,) = 16x+8x2+4y-(4x+y-20), where is the Lagrange multiplier. What is the solution for x and y?
Answer : B