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Advanced Wealth Management Course (IIBF) - Paper 3
Part I: Ch 3: Statistical and Mathematical Tools
Q1.
Derivatives are very useful in understanding the behaviour of mathematical expressions when variables change in value.
Q2.
You have opened a bank deposit of Rs. 100,000 of 8% interest rate. What would be the cumulative value at the end of 3 years?
Q3.
What is the compounded return if Rs. 1000 becomes Rs. 4000 in 2 years? (Hint: Use appropriate formula)
Q4.
Calculate the arithmetic mean from the following series of share prices: 10, 12,14,12,15,12,13,20
Q5.
The probability of returns of 12%, 15% and 20% on a debt security is 20%, 30% and 50%. What is the expected value of returns?
Q6.
A straight line connecting any two points of the curve, if the curve lies entirely above the line, it is a concave curve.
Q7.
(I) R-square tells what percentage of the returns in the dependent variable can be explained by changes in the independent variable. (II) A straight line connecting any two points of the curve, if the curve lies entirely under the line, it is a convex curve.
Q8.
Explain, using a formula, what would be the present value of Rs. 100,000 received in 25 years, assuming the discount rate as 15%?
Q9.
Explain, using a formula, what would be the present value of Rs. 500received in 2 years, assuming the discount rate as 8%?
Q10.
Calculate the median from the following series of share prices: 10, 13, 20, 15, 12, 13, 16, 13.
Q11.
Calculate the mode from the following series of share prices: 15,20, 17, 18, 21, 15, 25, 17,15,21
Q12.
When data is symmetrically distributed, such that mean, median and mode are the same, it is called a normal distribution.
Q13.
(I) A standardized measure is one which is not specific to a situation. (II) The process of finding the derivative is called differentiation.
Q14.
You have opened a bank deposit of Rs. 100,000 of 8% interest rate. If the bank were accruing interest every half-year. What would be the cumulative value at the end of 3 years?
Q15.
If the tail of a distribution is extended on any side, the distribution is said to be:
Q16.
Examples of standardized measure are:

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