Quantitative Methods

Question 1

What is the formula for the future value of a single cash flow?

Answer 1

Question 2

What’s the formula for the present value of a single cash flow?

Answer 2

Question 3

What is the present value of a perpetuity?

Answer 3

Question 4

What is the future value with continuous compounding?

Answer 4

Question 5

What is the effective annual rate (EAR)? Or what function could I use on my calculator?

Answer 5

Or can use the inconv function

Question 6

What is EAR with continuous compounding?

Answer 6

Question 7

How to work out geometric mean?

Answer 7

Question 8

Formula for harmonic mean

Answer 8

Question 9

Mean absolute deviation (MAD)

Answer 9

Question 10

What is a quartile, quintile and decile?

Answer 10

Question 11

Population variance

Answer 11

Question 12

Sample variance

Answer 12

Question 13

Standard deviation

Answer 13

Question 14

Sample target semi deviation

Answer 14

Question 15

Coefficient of variation

Answer 15

Question 16

Odds for an event ‘E’ stated as odds

Answer 16

Question 17

Probability of A or B

Answer 17

Question 18

Conditional probability of A given B

Answer 18

Question 19

Expected value of a random variable

Answer 19

Question 20

Variance of a random variable

Answer 20

Question 21

Portfolio expected return

Answer 21

Question 22

Portfolio variance

Answer 22

Question 24

Population Covariance of a portfolio

Answer 24

Question 25

Correlation of a portfolio

Answer 25

Question 26

Bayes formula

Answer 26

Question 27

How would I find the maximum number of something

Answer 27

Use the binomial (!) function

Question 28

What’s the safety first ratio

Answer 28

Question 29

Formula for standardising a random normal variable

Answer 29

Question 30

Continuously compounded return

Answer 30

Question 31

Standard error of the sample mean

Answer 31

Question 32

Standard error of the sample mean where the standard deviation is not known

Answer 32

Question 33

Test of mean differences (T statistic)

Answer 33

Question 34

Total sum of squares

Answer 34

Question 35

Standard error of estimate

Answer 35

Question 36

R squared formula

Answer 36

Question 38

Intercept term

Answer 38

Question 39

Probability function for a binomial random variable

Answer 39

Question 40

Degrees of freedom of students t distribution

Answer 40

Question 41

Confidence interval

Answer 41

Question 42

Z score (test of a single mean)

Answer 42

Question 43

F score (test for differences in variances)

Answer 43

Question 44

Regression coefficient

Answer 44

Where ‘E’ = residual