FIN 340 Short Selling Problems:
Use the old-fashioned (dollar return)/(dollar invested) approach.
You borrow 500 shares of ABC at $30/share and sell it. You deposit another $10,000 into your account as
margin. The total in cash will earn 3% but you will h
FIN 340: Weighted Average Problems
1. If a portfolio is composed of $7000 of Stock X and $13000 of Stock Y and X=0.7 and Y=1.2, what
is P= ?
2. If a portfolio is composed of $5000 of Stock X and $4000 of Stock Y and $11000 of Stock Z and
X=1.4 and Y=1.6 a
1. The returns of your $10,000,000 portfolio is skewed, Skew = -1.2. The mean is 0%, because of the short time
horizon. The standard deviation is 2%. Compute the 95% VaR with and without the adjustment to skewness.
FIN 340: Performance Measures Sample Problems
Compute the alpha, Sharpes measure and Treynor measure of performance in each of the following
Return = 14%
Standard deviation = 25%
Beta = 1.3
Market return = 10%
Risk-free rate = 2%
Return = 8%
MATH 411, Winter 2015, Handout for Lecture 3
1. Alzheimer’s (Chapter 21, problem 20, page 522)
A sereening test for Alzheimer’s disease was developed for use in the general population of senior
citizens. The test has a false positive rate of 4%, i.e. P( T
Joint probability table:
Gender -Male- Female-Total
A) What is the probability of a randomly selected resident being in favor of the bridge?
Improved Statistical Test for
Data Integrating ANOVA with
This research was done at The Rockefeller
University and supervised by Brian Kirk2
1. 180 East End Ave, New York, NY, 10128. Email: vicvic@