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Study Session 3: Quantitative Methods: Application

Whats The efficient way to calculate the MAD in a hp12c?

–38.49%
–0.73%
0.00%
9.54%
11.39%
12.78%
13.41%
19.42%
23.45%
29.60%

I have all this values I know I need to calculate the mean first, however it`s possible to save the values in STO while pressing the M+?

When I try to save the numbers to the memories while calculating the mean with M+ it doesnt work…

I need to help I did some research but didn`t found something that cold help me

Big Trouble with formulas

I`m having a big issue,

I finished R6 of quant and I`m in the last LOS of R7, but I`m having such a big trouble to remember formulas, it`s so use to confuse some of them, does anyone have a tip for me?

Chebyshev’s Inequality

How you`re supposed to know Chebyshev’s inequality table??

I mean see the exercise:

According to Exhibit 27, the arithmetic mean monthly return and standard
deviation of monthly returns on the S&P 500 were 0.95 percent and 5.39 percent,
respectively, during the 1926–2017 period, totaling 1,104 monthly observations.
Using this information, address the following:

1 Calculate the endpoints of the interval that must contain at least 75 percent
of monthly returns according to Chebyshev’s inequality.

Calculate the geometric mean return of SLASX

If you have all positive returns, in the formula, let`s suppose:

Year 1 - 34,9% year 2 - 6,13% year 3 - 2,69% year 4 - 11,66% year 5 - 21,77%

in the book the answer is:

(1,349)*(1,.0613)*(1,0269)*(1,1166)*(1,2177)^1/5 - 1

(1,349)*(1,.0613)*(1,0269)*(1,1166)*(1,2177)^0,2 - 1

My question is why instead of putting like 0,349 you need to add a 1 in all of them?

Can someone explain it please?

Identifying Scales of Measurement

1 Credit ratings for bond issues.
2 Cash dividends per share.
3 Hedge fund classification types.
4 Bond maturity in years.

Answers: Ordinal Ratio Nominal Ratio

Why credit ratings for bond issues are not Interval?

Cash dividends can be 0 which would be anothing that`s why its ratio, right?

For Hedge Fund classification please I need someone to give me a example, cuz I just didn`t got it.

Bond maturity in years I also need a explanation.

A client invests €20,000 in a four- year certificate of deposit (CD) that annually pays interest of 3.5%

A client invests €20,000 in a four- year certificate of deposit (CD) that annually
pays interest of 3.5%. The annual CD interest payments are automatically
reinvested in a separate savings account at a stated annual interest rate of 2%
compounded monthly. At maturity, the value of the combined asset is closest to:

PV = $20.000 CHS
i = 3,5
N = 1
PMT = 0
FV = $20.700

so at end of each year you will get $700 dollars from this CD

year 1

Continuous Compounding on a HP12c

Given a €1,000,000 investment for four years with a stated annual rate of 3%
compounded continuously, the difference in its interest earnings compared with
the same investment compounded daily is closest to:

Can anyone solve this question step by step for me in a HP12c please?

IDK how to do continuous compounding in that and I need to know!

Thanks.

Controversial Question, use days as 360 or 365

For a lump sum investment of ¥250,000 invested at a stated annual rate of
3% compounded daily, the number of months needed to grow the sum to
¥1,000,000 is closest to:

A)555

B)563

C)576

I will show this question have 2 answers depending if you do it with 360 and 365 and I need to know the correct answer…

PV = 250.000 CHS 

FV = 1.000.000

I = 3/360

PMT = 0

N = 16.637 days

16.637/30 = 554,56 = 555 months = answer A

PV = 250.000 CHS 

FV = 1.000.000

I = 3/365

How Can I elevate a number in HP12c?

A bank quotes a stated annual interest rate of 4.00%. If that rate is equal to an
effective annual rate of 4.08%, then the bank is compounding interest:

A daily.
B quarterly.
C semiannually

the formula is:

EAR = (1 + Periodic interest rate)m – 1

what is Periodic Interest Rate?

m would be by tentative 1 by each, right? so 365, 4, 2

Also how can I elevate a number in HP12c, can someone do a step by step?

Thank you.

Future value of a delayed annuity

3)Two years from now, a client will receive the first of three annual payments of
$20,000 from a small business project. If she can earn 9 percent annually on her
investments and plans to retire in six years, how much will the three business
project payments be worth at the time of her retirement?

year 2 - $20.000
year 3 - $20.000
year 4 - $20.000
year 6 - retirement
i = 9

y2f = $28.231,63
y3f = $25.900,58
y4f = $23.762,00
sum = $77.894,21