Quantitative Methods

Question 1

Trail 101

Answer 1

You Can do it

Question 2

Compound interest formula

Answer 2

P*(1+r)^n

Question 3

Full form of SAR

Answer 3

Stated Annual Return (R)

Question 4

m=?

Answer 4

Compounding frequency

Question 5

formula of FV

Answer 5

FV= PV(1+SAR/m)^n*m

Question 6

Formula of PV

Answer 6

FV/(1+SAR/m)^n*m

Question 7

PV will be highest when?

Answer 7

returns are annualised

Question 8

nominal risk free Rate=? for riskless entity

Answer 8

nominal risk free rate= real risk free rate+ inflation

Question 9

opportunity cost is

Answer 9

rate that could’ve been received in the second best alternative
eg starting a business vs putting money in FD

Question 10

holding period returns

Answer 10

HPR = (Ending value +dividends/ beginning value) -1

Question 11

Airthemtic mean

Answer 11

Ar=(R1 +R2…+Rn)/n

Question 12

Geometric mean

Answer 12

GM = (x, x1…., xn)^1/n

Question 13

GM is also known as

Answer 13

CAGR

Question 14

arrange hm gm am

Answer 14

hm<gm<am

Question 15

what is geometric mean?

Answer 15

it is that average which gives the same final value as when the amount is invested at different rates

Question 16

Harmonic Mean

Answer 16

n/(1/x +1/x¹ +…1/xn)

Question 17

to calculate the cost of SIP we use?

Answer 17

harmoic mean

Question 18

to calculate returns of a stock we use?

Answer 18

Geometric mean

Question 19

to calculate average scores of a player we use?

Answer 19

Airthemtic mean

Question 20

Relationship between HM GM and AM

Answer 20

airthemtic mean* harmonic mean = (geometric mean)²

Question 21

Why do we ask for a real risk free rate?

Answer 21

to compensate for delaying consumption

Question 22

why do we ask for inflation premium?

Answer 22

to maintain the purchasing power of the consumer