ML4T Final Questions ACTUAL UPDATED QUESTIONS AND CORRECT ANSWERS
1. Why did it come a good investment to bet against The default rate on the mortgages kept rising.
mortgage-backed securities? Banks were incentivized to issue more and more mortgages.
A) The default rate on the mortgages kept rising.
B) Rating agencies were accurately assigning ratings.
C) Banks were incentivized to issue more and more
mortgages.
D) A and C
458. How does alpha and gamma values in Q-learning The agent learns more quickly with larger alpha value and values later rewards
relate to the agent learning/update? more with larger gamma.
A) The agent learns more quickly with larger alpha value
and values
later rewards more with smaller gamma
B) The agent learns more quickly with larger alpha value
and values
later rewards more with larger gamma
C) The agent learns more slowly with larger alpha value
and values
later rewards more with smaller gamma
D) The agent learns more slowly with larger alpha value
and values
later rewards more with larger gamma
, 496. What is the strong form of EMH? Prices adjust to public and private information
A) Prices adjust to new public information
B) Future prices cannot be predicted by just analyzing
historic prices
C) Prices adjust to public and private information
D) None of the above
11. In the movie, "The Big Short", what did Credit Default Insured the bonds against failure, and the insurer paid the claim if the underlying
Swaps do? bonds fail
A) Insured the bonds against failure and the insurer paid
the claim if the
underlying bonds fail
B) Insured the bonds against failure and the insurer paid
the claim if the
underlying bonds make money
C) To increase employees
D) As an annual practice
145. The information coefficient(IC) of a manager is 0.2. 3.6
The manager makes monthly bets on 27 stocks. What is
the information ratio(IR) or performance of the manager?
A) 0.6 * sqrt(3)
B) 5.4
C) 0.45 * sqrt(3)
D) 3.6
472. Which of the following is not an input of the mean Asset weights for portfolio that minimize risk
variance optimization(MVO)?
A) Volatility
B) Covariance
C) Target return
D) Asset weights for portfolio that minimize risk
557. Which of the following is not a form of the EMH? semi-weak
A) Weak
B) Semi-Weak
C) Strong
D) Semi-Strong
668. With regards to the Fundamental Law, what is skill
summarized in the information coefficient?
A) Breadth
B) Beta
C) Skill
D) Performance
1. Why did it come a good investment to bet against The default rate on the mortgages kept rising.
mortgage-backed securities? Banks were incentivized to issue more and more mortgages.
A) The default rate on the mortgages kept rising.
B) Rating agencies were accurately assigning ratings.
C) Banks were incentivized to issue more and more
mortgages.
D) A and C
458. How does alpha and gamma values in Q-learning The agent learns more quickly with larger alpha value and values later rewards
relate to the agent learning/update? more with larger gamma.
A) The agent learns more quickly with larger alpha value
and values
later rewards more with smaller gamma
B) The agent learns more quickly with larger alpha value
and values
later rewards more with larger gamma
C) The agent learns more slowly with larger alpha value
and values
later rewards more with smaller gamma
D) The agent learns more slowly with larger alpha value
and values
later rewards more with larger gamma
, 496. What is the strong form of EMH? Prices adjust to public and private information
A) Prices adjust to new public information
B) Future prices cannot be predicted by just analyzing
historic prices
C) Prices adjust to public and private information
D) None of the above
11. In the movie, "The Big Short", what did Credit Default Insured the bonds against failure, and the insurer paid the claim if the underlying
Swaps do? bonds fail
A) Insured the bonds against failure and the insurer paid
the claim if the
underlying bonds fail
B) Insured the bonds against failure and the insurer paid
the claim if the
underlying bonds make money
C) To increase employees
D) As an annual practice
145. The information coefficient(IC) of a manager is 0.2. 3.6
The manager makes monthly bets on 27 stocks. What is
the information ratio(IR) or performance of the manager?
A) 0.6 * sqrt(3)
B) 5.4
C) 0.45 * sqrt(3)
D) 3.6
472. Which of the following is not an input of the mean Asset weights for portfolio that minimize risk
variance optimization(MVO)?
A) Volatility
B) Covariance
C) Target return
D) Asset weights for portfolio that minimize risk
557. Which of the following is not a form of the EMH? semi-weak
A) Weak
B) Semi-Weak
C) Strong
D) Semi-Strong
668. With regards to the Fundamental Law, what is skill
summarized in the information coefficient?
A) Breadth
B) Beta
C) Skill
D) Performance
