Financial Forensics · End Term · Sep 2023 · AN

Current Ratio

Quick Ratio

Inventory turnover ratio

Gross Profit Margin – Expressed in Ratio

Net profit margin – Expressed in Ratio

Debt to Capitalization Ratio – Expressed in Ratio **NOTE:**Round to two decimal places wherever necessary

Which of the following ratios can be considered when we are analysing the profitability of a company?

You have devised a 10 year retirement plan whereby you pay your subscribers 1000$ per annual for the first 5 years, and then 8000$ for the next 5 years. Assuming a discount rate of 6% for the first 5 years and 8% for the next 5 years, what should be the minimum price at which you have to sell the plan so that you don't incur any loss? **NOTE:**Round to two decimal places wherever necessary

Suppose the risk free rate in the market is 5%, the expected market return is 7% and the beta of the stock is 1.2, at what rate the expected return of a stock changes with respect to the market premium?

Holmes, Inc., is a 90% equity and 10% debt financed firm. The unlevered beta is 0.60, the market risk premium is 6.67 percent, and the risk-free rate is 3.30 percent. What is the expected rate of return on this stock? Consider the tax rate as 30%. Express your answer as a fraction. **NOTE:**Round to two decimal places wherever necessary

The following are the number of payments attempts on a regular day that a fintech giant is seeing in its platform. You are hired as a data scientist to find the pattern in the payment attempts and you decide to perform a MLE with a gaussian distribution as an assumption. Which of these correctly represents the parameters of the normal distribution based on MLE for the given data: # Daily Payment Attempts = 100, 145, 120, 250, 124, 364, 124, 237, 365, 143

Which of the following is **not True** about using rules for Fraud Detection in the world of FinTech:

Which of the following statement(s) is/are correct about isolation forest: I. Isolation Forest is a tree based algorithm, so it is a supervised learning model. II. In Isolation Forest the data points that are easy to separate from the population are more likely to be anomalous. III. Isolation Forest can be used only for fraud detection. IV. Isolation Forest can be used only when the type of Fraud is known before building the ML system.

When we do anomaly detection, a Univariate Gaussian distribution is a good choice for representing two features that are positively correlated?

X is a characteristic of a time series in which the data experiences regular and predictable changes that recur at an irregular interval of time. What is X?

Given an AR(3) model with autoregressive coefficients of 0.6, 0.2 and -0.1 and initial values at t=0, t=1 and t=2 being 8, 10 and 12, respectively. Calculate the predicted value at t = 3.

Which of the following is/are example(s) of a autocorrelation process:

Which of the following can be solved by the differencing technique in time series analysis?

Considering the following data answer the subquestions: The Hosmer Company had June sales of $275,000. The cost of goods sold was $164,000 Other cash expenses were: Rent $ 3,300 Taxes $ 1,375 Salaries $ 27,400 Other $ 50,240

What were the company Revenues?

Considering the following data answer the subquestions: The Hosmer Company had June sales of $275,000. The cost of goods sold was $164,000 Other cash expenses were: Rent $ 3,300 Taxes $ 1,375 Salaries $ 27,400 Other $ 50,240

What were the company Expenses?

Considering the following data answer the subquestions: The Hosmer Company had June sales of $275,000. The cost of goods sold was $164,000 Other cash expenses were: Rent $ 3,300 Taxes $ 1,375 Salaries $ 27,400 Other $ 50,240

What were the company Net income in June?

The income in the income statement is? (Hint: Balance Sheet should Balance):

As it is “The Balanced Sheet”, the Retained Earnings equal _____

D. Carson and F. Leggatt formed a partnership on June 1 to operate a shoe store. Carson contributed $50,000 cash and Leggatt contributed $50,000 worth of shoe inventory. During the month of June, the following transactions took place: 1. Additional shoe inventory was purchased at a cost of $24,000 cash. 2. Total cash sales for the month were $31,000. The inventory that was sold had a cost of $15,500. 3. Carson withdrew $6,200 of cash drawings. Leggatt withdrew only $3,700 of cash drawings. 4. The partnership borrowed $50,000 from the Third National Bank. 5. Land and a building were purchased at a cash cost of $25,000 and $50,000, Based on the given information answer the subquestions:

Cash inflow is ___ ?

D. Carson and F. Leggatt formed a partnership on June 1 to operate a shoe store. Carson contributed $50,000 cash and Leggatt contributed $50,000 worth of shoe inventory. During the month of June, the following transactions took place: 1. Additional shoe inventory was purchased at a cost of $24,000 cash. 2. Total cash sales for the month were $31,000. The inventory that was sold had a cost of $15,500. 3. Carson withdrew $6,200 of cash drawings. Leggatt withdrew only $3,700 of cash drawings. 4. The partnership borrowed $50,000 from the Third National Bank. 5. Land and a building were purchased at a cash cost of $25,000 and $50,000, Based on the given information answer the subquestions:

Cash outflow is ___?

D. Carson and F. Leggatt formed a partnership on June 1 to operate a shoe store. Carson contributed $50,000 cash and Leggatt contributed $50,000 worth of shoe inventory. During the month of June, the following transactions took place: 1. Additional shoe inventory was purchased at a cost of $24,000 cash. 2. Total cash sales for the month were $31,000. The inventory that was sold had a cost of $15,500. 3. Carson withdrew $6,200 of cash drawings. Leggatt withdrew only $3,700 of cash drawings. 4. The partnership borrowed $50,000 from the Third National Bank. 5. Land and a building were purchased at a cash cost of $25,000 and $50,000, Based on the given information answer the subquestions:

How much is the total profit/loss?

Which of the following represents a liability on a balance sheet?

What does the cash flow statement intend to do?

If cosine similarity between two string vectors is low, it means

You had converted two words to a vectors having following values: A = [2,1,4,2,8] B = [3,4,2,5,4] The cosine similarity between them is:

“went” became “go”. This is an example of which of the following?

Input – The cats are playing in the garden, and one of them is chasing a butterfly. Output – The cat be play in the garden, and one of them be chase a butterfly. Which of the following pre-processing to input results in this output?

As given in the confusion matrix of the classifier in Table 1, a bank provides loan to 300 prospects from a database. Selection of an actual good customer leads to an average profit of ₹12,000. Due to misclassification, if a bad applicant is selected for loan, an average loss of ₹40,000 will be incurred. Based on the data given in the confusion matrix (Table 1), what is the additional profit bank could have earned by giving loans to declined good customers?

What is the Shapley value conceptually based on in cooperative game theory?

In SHAP summary plots, what does the x-axis represent?

In the following waterfall plot , identify the model predicted value

Which of the following visualizations is commonly used to display SHAP values for a single prediction?

In SHAPley values, what does a negative value for a feature indicate?