Let X be a random variable distributed normally with mean 0 and standard deviation 1. What is the expected value of exp(X)?
What is the simplest form of this expression: log2(165/2)
Which of the following is not a direct cause of autocorrelation or heteroskedasticity in the residuals of a regression model?
If the annual volatility of returns is 25% what is the variance of the quarterly returns?
Calculate the determinant of the following matrix:
The natural logarithm of x is:
Exploring a regression model for values of the independent variable that have not been observed is most accurately described as…
There are two portfolios with no overlapping of stocks or bonds. Portfolio 1 has 6 stocks and 6 bonds. Portfolio 2 has 4 stocks and 8 bonds. If we randomly select one stock, what is the probability that it came from Portfolio1?
Evaluate the derivative of exp(x2 + 2x + 1) at the point x = -1
In a 2-step binomial tree, at each step the underlying price can move up by a factor of u = 1.1 or down by a factor of d = 1/u. The continuously compounded risk free interest rate over each time step is 1% and there are no dividends paid on the underlying. Use the Cox, Ross, Rubinstein parameterization to find the risk neutral probability and hence find the value of a European put option with strike 102, given that the underlying price is currently 100.
