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Question 325 NAT · 4.0 marks
Security A has an expected return of 18% and a standard deviation of 20%. Security B has an
expected return of 16% and a standard deviation of 25%. If the rates of return of the two securities
have a correlation coefficient of 0.4, what is their covariance (in %)?
**Note:**The answer is a single digit integer between 0-9.
A published solution is not available for this question yet.
A company is facing a lawsuit from a customer. It is possible, but not probable, that the company
will have to pay a settlement that management estimates to be ₹3,000,000. How would this fact be
reported in the financial statements to be issued at the end of the current month?
6406533530472.
₹3,000,000 in the Current Liability section
6406533530473.
None because disclosure is not required
6406533530474.
₹3,000,000 in the Long-Term Liability section
6406533530475.
In a descriptive narrative in the footnote section
A published solution is not available for this question yet.
You have been offered a job that pays an annual salary of ₹48,000, ₹51,000, and ₹55,000 over the
next three years, respectively. The offer also includes a starting bonus of ₹2,500 payable
immediately. What is this offer worth to you today at a discount rate of 6.5 percent?
6406533530476.
147610
6406533530477.
145110
6406533530478.
167500
6406533530479.
138601
A published solution is not available for this question yet.
Phil's Carvings wants to have a weighted average cost of capital of 9.5 percent. The firm has an
after tax cost of debt of 6.5 percent and a cost of equity of 12.75 percent. What debt-equity ratio is
needed for the firm to achieve its targeted weighted average cost of capital?
6406533530480.
0.84
6406533530481.
0.92
6406533530482.
1.08
6406533530483.
0.76
A published solution is not available for this question yet.
A firm has a return on equity of 25 percent. The total asset turnover is 2.4 and the profit margin is
8 percent. The total equity is ₹ 4,100. What is the net income?
6406533530484.
₹ 2,460
6406533530485.
₹ 787
6406533530486.
₹ 427
6406533530487.
₹ 1,025
A published solution is not available for this question yet.
PQR financials is a loan provider for businesses, and it is evaluating the following companies for
providing a loan.
a. Company A: Debt Equity Ratio: 0.8, Times Interest Earned: 8
b. Company B: Debt Equity Ratio: 0.2, Times Interest Earned: 8
c. Company C: Debt Equity Ratio: 0.8, Times Interest Earned: 2
d. Company D: Debt Equity Ratio: 0.2, Times Interest Earned: 2
As a financial analyst of PQR, you have to review the above information and provide a
recommendation to the CEO of the company. What would be your recommendation to the CEO,
regarding the best company to give the loan to?
6406533530496.
Company A
6406533530497.
Company B
6406533530498.
Company C
6406533530499.
Company D
A published solution is not available for this question yet.
At the beginning of the month the company hired workers and employees for a total monthly
remuneration of ₹ 75,000 payable at the end of each month. How would this transaction reflect in
the income statement and balance sheet at the beginning of the month?
6406533530500.
Expense will increase by ₹ 75,000 and liabilities will also increase by equal
amount
6406533530501.
Expense will increase by ₹ 75000 and cash will decrease by the equal amount
6406533530502.
There will be no effect on cash flow statement and balance sheet.
6406533530503.
Only expenses will increase by ₹ 75000
A published solution is not available for this question yet.
A company provided the following cash flow details under financing activities for the year:
● Proceeds from issuing shares: ₹8,00,000
● Repayment of a long-term loan: ₹4,50,000
● Payment of dividends: ₹1,25,000
● Issuance of new debt: ₹3,00,000
● Share buyback: ₹2,50,000
What is the net cash flow from financing activities?
6406533530508.
₹2,75,000
6406533530509.
₹3,75,000
6406533530510.
₹5,75,000
6406533530511.
₹6,75,000
A published solution is not available for this question yet.
A fintech company has a ML system that identifies transaction frauds that occur in its system. The
model currently has a recall of 99.9%. The fraud rate, as reported by the company in its system is
20 BPS. On a regular day there are close to above 1 million transactions that happens via the
company’s payment system, and for each fraudulent transaction the company losses INR 10 on an
average. The annual savings (INR) brought in by the ML system is:
A time series dataset shows quarterly sales data for a company over 5 years. The company
observes the following characteristics:
● The sales exhibit a linear upward trend of 5 units per quarter.
● A seasonal pattern is present, where sales increase by +20 units in Quater 2 and Quater 4, and
decrease by −15 units in Quater 1 and Quater 3.
● The time series is non-stationary due to the trend.
If the sales in Q1 of the first year were 200, what will be the forecasted sales in Q4 of the 5th year,
assuming no randomness?
6406533530516.
295
6406533530517.
375
6406533530518.
315
6406533530519.
395
A published solution is not available for this question yet.
If a model predicts the positive class for all observations in a binary classification problem with
both positive and negative cases present with class balance 1:99 (positive : negative), which of the
following statements is true?
6406533530541.
Both Recall and Precision are 100%.
6406533530542.
Recall is 100%, but Precision is not necessarily 100%.
6406533530543.
Precision is 100%, but Recall is not necessarily 100%.
6406533530544.
Neither Recall nor Precision are 100%.
6406533530545.
None of these
A published solution is not available for this question yet.
The Bankruptcy Bank, one of the major lending banks, has hired you to build a credit underwriting
model to help their automated lending decisions. Their definition of default is 60-89 DPD. There is
historical loans data since January 1, 2021 till November 30, 2024. Which of the following is true?
6406533530563.
Jan’21 – Nov’24 data should be used for model training
6406533530564.
Jan’21 – Sep’24 data should be used for model training
6406533530565.
Jan’21 – Mar’21 data should be ignored from model training
6406533530566.
Sep’24 – Nov’24 data should be ignored from model training
6406533530567.
None of these
A published solution is not available for this question yet.
**Story: The Final Puzzle of the Cursed Map**
In the heart of an ancient temple, Emma, Liam, Noah, and Sophia uncovered **four fragments** of a
long-lost map, believed to lead to a hidden treasure—the Heart of Eternity. However, the map was
cursed: only **three of the four fragments fit together** to reveal the location of the treasure.
Using their AI assistant, the team converted the fragments into vectors:
The curse demanded that the team identify the **three most aligned fragments** to unlock the
treasure. Using cosine similarity, they must calculate the alignment between every pair of
fragments to decide which one to discard. Time is ticking, and the howls of the jungle grow
louder…
Based on the above data, answer the given subquestions.
Which three fragments fit best?
6406533530525.
A, B, D
6406533530526.
A, C, B
6406533530527.
A, C, D
6406533530528.
B, C, D
A published solution is not available for this question yet.
**Story: The Final Puzzle of the Cursed Map**
In the heart of an ancient temple, Emma, Liam, Noah, and Sophia uncovered **four fragments** of a
long-lost map, believed to lead to a hidden treasure—the Heart of Eternity. However, the map was
cursed: only **three of the four fragments fit together** to reveal the location of the treasure.
Using their AI assistant, the team converted the fragments into vectors:
The curse demanded that the team identify the **three most aligned fragments** to unlock the
treasure. Using cosine similarity, they must calculate the alignment between every pair of
fragments to decide which one to discard. Time is ticking, and the howls of the jungle grow
louder…
Based on the above data, answer the given subquestions.
Which pair has the least similarity?
6406533530529.
A,B
6406533530530.
B,D
6406533530531.
C,D
6406533530532.
A,C
A published solution is not available for this question yet.
**Story: The Final Puzzle of the Cursed Map**
In the heart of an ancient temple, Emma, Liam, Noah, and Sophia uncovered **four fragments** of a
long-lost map, believed to lead to a hidden treasure—the Heart of Eternity. However, the map was
cursed: only **three of the four fragments fit together** to reveal the location of the treasure.
Using their AI assistant, the team converted the fragments into vectors:
The curse demanded that the team identify the **three most aligned fragments** to unlock the
treasure. Using cosine similarity, they must calculate the alignment between every pair of
fragments to decide which one to discard. Time is ticking, and the howls of the jungle grow
louder…
Based on the above data, answer the given subquestions.
The highest cosine similarity among the pairs is:
6406533530533.
0
6406533530534.
0.986
6406533530535.
0.973
6406533530536.
0.993
A published solution is not available for this question yet.
**Story: The Final Puzzle of the Cursed Map**
In the heart of an ancient temple, Emma, Liam, Noah, and Sophia uncovered **four fragments** of a
long-lost map, believed to lead to a hidden treasure—the Heart of Eternity. However, the map was
cursed: only **three of the four fragments fit together** to reveal the location of the treasure.
Using their AI assistant, the team converted the fragments into vectors:
The curse demanded that the team identify the **three most aligned fragments** to unlock the
treasure. Using cosine similarity, they must calculate the alignment between every pair of
fragments to decide which one to discard. Time is ticking, and the howls of the jungle grow
louder…
Based on the above data, answer the given subquestions.
The cosine similarity between B,D is:
6406533530537.
0
6406533530538.
0.953
6406533530539.
0.935
6406533530540.
0.889
A published solution is not available for this question yet.
You have a binary classifier that classifies a transaction as "fraud" (model says it is fraud),
otherwise we assume it is "not fraud". Assume that:
- 1% of all transactions is fraud
- When an transaction is fraud, the model classifies it as "fraud" 99% of the time
- When an transaction is not fraud, the model classifies it as "not fraud" 99% of the time.
What is the precision of the model? Express your answer as a percentage
A published solution is not available for this question yet.
