yilunzhao/KnowledgeMath huggingface dataset:
Topic: Market Analysis & Economics

Chosen data is extracted from the GDP statistics of a fictitious nation. What is the trade shortfall in $ trillions for this nation?

| Account Name                              | Amount ($ billions) |
| ---------------------------------------- | ------------------- |
| Personal income                          | 2,456               |
| Personal disposable income               | 1,930               |
| Government spending                      | 666                 |
| Government fixed investment              | 118                 |
| Business gross fixed investment          | 538                 |
| Government transfer payments to consumers| 348                 |
| Total domestic savings                   | 638                 |
| Tax revenue other than from households   | 440                 |
| Change in inventories                    | -16                 |
Topic: Asset Classes & Derivatives

Given the same sequence of spot rates, what is the cost of Bond X?

| Bond | Coupon Rate | Time-to-Maturity | Spot Rates |
|------|-------------|------------------|------------|
| X    | 8%          | 3 years          | 8%         |
| Y    | 7%          | 3 years          | 9%         |
| Z    | 6%          | 3 years          | 10%        |
Topic: Quantitative Analysis & Valuation

An analyst with an investment management firm named James Collins is examining the consequences of leverage on yearly ROE in the company's Eurozone equities fund ("the fund"). He gathers data on the 72 stocks in the fund, taking company size as an independent variable. The results of estimating the model Ri = b0 + b1(Sizei) + b2(D/Ei) + ει are shown in Exhibit 1. Collins compares the projections of his model to the actual ROE for two portfolio stocks, X and Y, both with identical debt ratios but with market capitalizations of EUR 100 million and 200 million respectively. According to Collins' regression analysis, how much higher is the ROE for company X than for company Y (in percentage points)?


|                | Coefficient | Standard Error |
|----------------|-------------|----------------|
| Intercept      | 0.2248      |                |
| Sizei          | -0.012      |                |
| D/Ei           | -0.0172     | 0.00986        |
|                |             |                |
| **ANOVA**      | **Degrees of freedom** | **Sum of squares** |
| Regression     | 2           | 0.0960         |
| Residual       | 69          | 0.5704         |

Note: Sizei= In (market capitalization)
Topic: Asset Classes & Derivatives

What is the calculated worth of the preferred shares of the corporation, based on the data collected by a shareholder?

| Par value of preferred stock offered at a 6% dividend rate | 100  |
|---------------------------------------------------|------|
| Company's sustainable growth rate                 | 5%   |
| Yield on comparable preferred stock issues        | 11.5%|
| Investor's marginal tax rate                      | 30%  |
Topic: Market Analysis & Economics

The following is the demand function for smartphones: QDmobile=10,000-2Pmobile+0.05income+2Pfixed-linetelephone-5Pwireless. As of now, a smartphone is priced at 3,000 RMB, while a landline and wireless solutions are priced at 1500 RMB and 500 RMB, respectively. With an assumption that income is 10,000 RMB, what would be the respective income elasticity of demand for a smartphone?
Topic: Asset Classes & Derivatives

The SW bond offers a 4% annual coupon and matures in three years. It's a callable bond that could be exercised at par at the conclusion of years 1 and 2. In calculating and assessing SW's bonds, Huang employs a projected interest rate volatility of 15% and develops the binomial interest rate tree as outlined in the Exhibit below. Green, a lead analyst, instructs Huang to determine the impact of a 20 bps parallel shift of the benchmark yield curve on the price of this callable bond. What does Huang's computations reveal in the table below about the effective duration of SW's callable bond?

| Magnitude of the Parallel Shift in the Benchmark Yield Curve | +20bps | -20bps |
|-------------------------------------------------------------|--------|--------|
| Full Price of the Bond (% of par)                           | 100.478| 101.238|
Topic: Asset Classes & Derivatives

If a PE fund has a total committed capital of $100 million, and the cumulative paid-in capital by the end of the most recent year was $90 million, with cumulative distributions tallying up to $30 million. Additionally, the end-of-year NAV, taking into consideration the balance before and after distributions, stood at $160 million and $130 million respectively. Moreover, the estimated NAV prior to distributions for the ensuing year is projected to be $250 million and the carried interest rate stands at 20%. Based on these financial figures of the PE fund, what was the TVPI (Total Value to Paid-In Capital) ratio at the close of the most recent year?
Topic: Quantitative Analysis & Valuation

Jane Doe possesses a spreadsheet comprised of 108 monthly returns for shares in the ABC Company. She constructs a software program that employs bootstrap resampling to generate 200 resamples of the ABC data by sampling with replacement. Each resample similarly contains 108 data points. Doe's software measures the average of all 200 resamples and determines that the mean of these 200 resample averages is 0.0261. The software then subtracts 0.0261 from all 200 resample averages, squares each of these 200 differences, and sums up the squared differences. The outcome is 0.835. Subsequently, the software calculates an estimation of the standard error of the sample average. What is the estimated standard error of the sample average?
Topic: Quantitative Analysis & Valuation

Based on the provided probability matrix, what is the covariance of stock X and stock Y?

| Probability Matrix |         |         |         |
|--------------------|---------|---------|---------|
| Returns            | RB=70%  | RB=30%  | RB=-20% |
| RA=-20%, 30%       |         | 0%      | 0%      |
| RA=20%, 0%         |         | 40%     | 0%      |
| RA=30%, 0%         |         | 0%      | 30%     |
Topic: Quantitative Analysis & Valuation

Based on the data provided in Exhibit 1, which consists of the results of a regression of the monthly returns for an index related to a power company's equity over the past 203 months (the dependent variable), against the monthly returns for the S&P 500 Index and the difference between the monthly returns on long-term U.S. government bonds and one-month U.S. Treasury bills (SPREAD) (the two independent variables), what is the test statistic value related to Peterson's null hypothesis on the coefficient value of SPREAD? Peterson's null hypothesis is that this coefficient equals 1, while his alternative hypothesis claims it does not equal to 1.

| Variable | Coefficient | t-statistic | p-value |
| -------- | ----------- | ----------- | ------- |
| Constant | -0.0069     | -0.013      | 0.99    |
| S&P 500  | 0.3625      | 6.190       | <0.01   |
| SPREAD   | 1.0264      | 4.280       | <0.01   |
Topic: Portfolio Management & Strategy

Three merchants are creating a market for Light Systems shares. From these prices, Wilson's trading desk carries out a market sell order for 1,100 shares of Light Systems. Based on the information in Exhibit 1, what is the cumulative amount that Wilson will receive, per share, for making the market sell order?

|     | Bid     |       |     | Ask     |       |     |     |
|-----|---------|-------|-----|---------|-------|-----|-----|
| Dealer | Time Entered | Price | Size | Dealer | Time Entered | Price | Size |
| B |   10.10 a.m. | $17.15 | 900 | C | 10.11 a.m. | $17.19 | 1,200 |
| C |   10.11 a.m. | $17.14 | 1,500 | B | 10.10 a.m. | $17.20 | 800 |
| A |   10.11 a.m. | $17.12 | 1,100 | A | 10.12 a.m. | $17.22 | 1,100 |
Topic: Risk Management

John is tasked with approximating the equity value of Company X using the Merton approach. 1)The value of Company X's assets stand at 180. 2)There's a risk-free rate of 5%.3)The company puts forth one-year zero interest bonds with a face value of 100. 4)The worth of a European put option on the company's asset is 3.50 and the strike price is set at 100.
Topic: Accounting

Sephora is a corporation from the United States that deals with cosmetics. Its Canadian branch, Beauty company, operates exclusively in Canada. It was established on 31st December 2015, and Beauty company uses the US dollar as its working currency. Fixed assets were acquired when the company was instituted. The table provides financial statement data for the years finalised in 2015 and 2016. Could you compute the balance sheet exposure if the working currency were modified?

|                             | 2015 | 2016 |
|-----------------------------|------|------|
| Cash                        | 210  | 310  |
| Accounts receivable         |      | 31   |
| Inventory                   | 60   | 80   |
| Fixed assets                | 200  | 200  |
| Accumulated depreciation    | -    | (35) |
| Total assets                | 470  | 586  |
| Accounts payable            | 105  | 162  |
| Long-term debt              | 235  | 273  |
| Common stock                | 130  | 130  |
| Retained earnings           | -    | 21   |
| Total liabilities and shareholders' equity | 470  | 586  |

|                          |                    |    US $/C$    |
|--------------------------|--------------------|--------------|
| Rate on                  | 31 December 2015   |    0.89      |
| Average  rate in 2016    |                    |    0.96      |
| Weighted-average rate for inventory purchases | |    0.94      |
| Rate  on  31 December 2016 |                  |    0.94      |
Topic: Asset Classes & Derivatives

Johnson inquires Chen to gauge the likelihood of default linked with a five-year investment-grade bond offered by Polaris Corporation. Chosen information on the Polaris Corporation bond is displayed in Exhibit 1.Exhibit 1. Based on Exhibit 1, what is the possibility of Polaris failing to repay the bond within the first three years, taking into account the specific data on Polaris Corporation Five-Year Bond?

| Year | Hazard Rate |
|---|---|
| 1 | 0.22% |
| 2 | 0.35% |
| 3 | 0.50% |
| 4 | 0.65% |
| 5 | 0.80% |
Topic: Asset Classes & Derivatives

Duhamel starts reviewing the asset collection of an American citizen, Brooke Jensen. Jensen's investments are in American and European securities. On January 1, 2019, Jensen held assets of USD 50 million and EUR 50 million, distributed between shares and bonds. The exchange rate on this day was 1.1 USD/EUR. A year later, on January 1, 2020, the value of Jensen's European asset increased from EUR 50 million to EUR 54 million, having EUR 20 million in shares and EUR 34 million in bonds. The USD/EUR exchange rate at this time is 1.16. Can you determine the domestic currency return on Jensen's European portfolio over the preceding year?
Topic: Quantitative Analysis & Valuation

John wants to assist his pal, Lisa, in forecasting the revenue of her store in October 20X9. To do this, he uses the income data from January 20X6 to September 20X9 as examples to create an AR(2) model. The resulting formula is: Xt+1  =1.3458+0.8912Xt+0.3372Xt-1. What would be the anticipated earnings of Lisa’s store in October 20X9 if it is known that the income in August 20X9 was $2746.72 and the income in September 20X9 was $2957.63?
Topic: Accounting

Using the same figures highlighted in the comparative balance sheets, how much money did Globex Metals International, a global metals corporation, gain from the sale of machinery, following their reported equipment sale loss of $2 million in 2018, a noted depreciation expense of $8 million, and capital outlays amounting to $10 million which was completely used on new machinery purchases?

| Balance Sheet Item | 12/31/2017 | 12/31/2018 | Change |
| ------------------ | ---------- | ---------- | ------ |
| Equipment          | $100 million  | $105 million | $5 million  |
| Accumulated  depreciation - equipment | $40 million | $46 million | $6 million |
Topic: Asset Classes & Derivatives

Bill is examining a food distribution enterprise, RapidSnacks's fair forward P/E using the Gordon growth offer discount model. The EPS and dividends of RapidSnacks are indicated previously. Bill assumes that the company's necessary rate of return would be 12%, and hypothesizes that the growth rate of the company would be consistent at 5%. Based on this data, what is the justified forward P/E of the enterprise?

|  | 2015 | 2016 | 2017 | 2018(E) |
|---|---|---|---|---|
| Earnings per share | 6 | 6.3 | 6.62 | 6.95 |
| Dividends per share | 1.8 | 1.89 | 2.00 | 2.10 |
Topic: Quantitative Analysis & Valuation

An expert finds out that roughly 99% of the observations of daily revenue for a corporation lie between $230,000 and $480,000 and that daily revenue for the corporation follows a normal distribution. If about 99% of all the observations lie in the interval μ ± 3σ, then using the approximate z-value instead of the exact table, what is the standard deviation of daily revenue for the corporation?
Topic: Risk Management

A manager in charge of market risk intends to determine the cost of a 2-year zero-coupon bond. The 1-year interest rate currently stands at 10.0%. It's projected that there's a 50% chance that the 1-year interest rate will reach 12.0% and a 50% chance that it could be 8.0% in the next year. If the risk premium of duration risk is assumed to be 50 bps annually, and the bond’s face value is worth EUR 1,000, which would be the accurate price of this zero-coupon bond?
Topic: Accounting

What is the contribution from the investment in Alme to the net earnings (in thousands) for 2017 of Brecht and Co, a European manufacturing company that prepares its financial statements according to International Financial Reporting Standards (IFRS)? This is being reviewed by two treasury group members of Brecht and Co, Hans Braun and Olga Schmitt.

|     |      |
| ----| ----|
| EXHIBIT 1  SELECTED INFORMATION O N INVESTMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (£ THOUSANDS, EXCEPT PER SHARE DATA) | |
| Company Name | Alme AG |
| Security  description | Bonds maturing  31 December 2026, 5% coupon payable  annually, 6% effective market rate when issued  1 January 2012 |
| Classification at purchase | Held to maturity |
| Date of purchase | 1 January 2016 |
| Amount owned by Dagmar | Face value £4,000 |
| Market value on  1 January 2017 | £3,600.60 |
| Market value on  31 December 2017 | £3,634.76 |
Topic: Asset Classes & Derivatives

John is assessing the FCFF of Corporation N for the upcoming year, which records an annual turnover of $100 million. He has projected the pertinent details in the given table. What is the FCFF?

| Revenue growth | 5% |
| --- | --- |
| Gross profit margin | 30% |
| Depreciation Expense | 2.5% of revenues |
| SG&A | 15% of revenues |
| WCInv | 5% of the incremental revenues |
| CapEx | 15% of the incremental revenues |
| Tax rate | 30% |
Topic: Asset Classes & Derivatives

The portfolio manager of AB pension, Monique, is contemplating the addition of XY Corp. (New York Stock Exchange: XY) to her portfolio. After a thorough evaluation of the company and its competitors, she is of the view that the company will exhibit exceptional growth for the coming 4 years and regular growth following that. Therefore, she has inferred that a two-stage DDM is most suitable for evaluating the stock. The total dividends paid by XY in 2017 amounted to $0.22. She predicts a growth rate of 12 percent for the next 4 years and 6 percent thereafter. She estimates that the required return is 9 percent. What percentage of the total value of the stock is associated with the value of the second stage based on this method?
Topic: Accounting

Currently possessing $750,000 in cash and short investment, Robert consults his investment manager Smith to discuss his investment portfolio. Robert's human capital amounts to $1.2 million with 30% demonstrating an equity-like characteristic according to calculations. Deciding that an overall target allocation of 45% equity is fitting for Robert, Smith must now determine the financial capital equity allocation required for Robert to meet the total economic wealth's targeted equity allocation. What should this allocation amount to?
Topic: Market Analysis & Economics

What is the contribution per unit (in £) this product adds to the present GDP, taking into account the production and sale expenses as shown in the subsequent table?

| Activity                           | Cost of Input (£/unit) | Price of Output (£/unit) in Current Period |
| ---------------------------------- | ---------------------- | ----------------------------------------- |
| Input materials                    | 3.50                   | 5.42                                      |
| Production                         | 5.42                   | 8.02                                      |
| Distributing good to stores (wholesale) | 8.02            | 11.23                                     |
| Selling good to consumers (retail) | 11.23                  | 16.50                                     |
Topic: Portfolio Management & Strategy

Exhibit 1 Smith Family: Personal and Financial Information:Personal Information:1. Estimated present value of the Smiths’ future earnings is $3,900,000.2. The family has two children, ages 10 and 8. Cost of four years of university for the two children, with an estimated present value of $250,000.3. Purchase of a vacation home in the next five years, with an estimated present value of $325,000.4. Estimated present value of the Grahams’ future consumption is $3,500,000. Using the data in Exhibit 1, what is the Smiths’ economic net worth (in thousands)?

| Checking account | $27,000 |
|------------------|---------|
| Taxable investment account | $625,000 |
| Residence | $525,000 |
| Residential mortgage | $285,000 |
| Outstanding balance on a $100,000 home equity line of credit | $38,000 |
Topic: Quantitative Analysis & Valuation

Michael wishes to assist his buddy James in forecasting the sales volume of his store in January 20X9, so he employs the sales volume data from January 20X6 to December 20X8 as examples to construct a log-linear trend model, achieving the result: Ln( ŷt ) =2.3748+0.0912t. What is the forecasted sales volume of James's store in January 20X9?
Topic: Asset Classes & Derivatives

If a Property B has an appraised worth of $36,000,000 with a predicted Year 1 NOI of 900,000, What would be the highest loan amount that Property B could receive if the loan provider is interested in an interest-only loan at 5% mortgage rate, given that the maximum loan to value doesn't exceed 80% and the minimum debt service coverage ratio is no less than 1.2x?
Topic: Asset Classes & Derivatives

XYZ, a wealth management company based in France, is planning to buy CDS on a firm called E to secure its existing portfolio position. The yearly coupon rate for the CDS is 5%, and the term of the CDS agreement is 5 years. The credit spread for firm E stands at 650 bps. Based on the details provided, what is the initial premium as a percent of the notional for the CDS on firm E?
Topic: Accounting

XYZ Inc. is a global company that adheres to IFRS and uses RMB as the currency for reporting. XYZ owns a subsidiary named QRS, located in the US and uses the US dollar (USD) as its operational currency. QRS's revenue for 2017 is USD90 million. What amount should XYZ Inc. report as its December 31, 2017 revenue from QRS?

| Date | Spot Exchange Rate (USD/RMB) | CPI |
| --- | --- | --- |
| 31 Dec 2015 | 6.2 | 100 |
| 31 Dec 2016 | 8.6 | 130 |
| 31 Dec 2017 | 17.3 | 200 |
| Average 2017 | 15.2 | 165 |
Topic: Market Analysis & Economics

Based on the information given in Exhibit 1, what is the GDP growth rate in Country A using the Solow growth accounting equation, which is the preferred method of calculation by Thompson?

| country  | Inflation rate (%) | Growth in total factor productivity (%) | Output elasticity of capital | Growth rate of capital (%) | Growth rate of labor (%) |
|----------|----------------|---------------------------------------|-----------------------------|----------------------------|--------------------------|
| Country A | 1.7              | 1.5                                                 | 0.3                                           | 3.2                                   | 0.4                                     |
| Country B | 1.8              | 1.3                                                 | 0.4                                           | 3.7                                   | 0.5                                     |
Topic: Market Analysis & Economics

What is the sector's concentration ratio for four companies, based on the market share data collected by the analyst for a particular industry?

| Company   | Sales(in millions of) |
|-----------|----------------------|
| ABC       | 300                  |
| Brown     | 250                  |
| Coral     | 200                  |
| Delta     | 150                  |
| Erie      | 100                  |
| All others| 50                   |
Topic: Asset Classes & Derivatives

An investment fund implements the succeeding payment structure: Yearly administrative fee based on year-end AUM: 2% Incentive fee: 20% Initial requirement rate before incentive fee starts: 4% Present top earning point: $610 million. The fund starts off the year with a value of $580 million and after one year, it ends with a value of $650 million before the fees are considered. What is the annual net percentage return to a shareholder for this year?
Topic: Accounting

In 2009, which was its inaugural year of operations, GameSquare recorded certain data concerning the sale of its products. Under the accrual basis of accounting, how much net revenue would appear on GameSquare's 2009 income statement?

| Revenue | $1,000,000 |
|---------|------------|
| Returns of goods sold | $100,000 |
| Cash collected | $800,000 |
| Cost of goods sold | $700,000 |
Topic: Quantitative Analysis & Valuation

A financial advisor was requested to look for opportunities for arbitrage in the market of Treasury bonds through a comparison of the cash flows from some selected bonds and the cash flows of other bond combinations. If the price of a 1-year zero-coupon bond is USD 97 and a 1-year bond with a 7% coupon and payments every six months comes at USD 102, using a duplication method, what would be the cost of a 1-year Treasury bond with a 6% coupon that has semi-annual payments?
Topic: Asset Classes & Derivatives

A researcher collects the subsequent details (in $ millions) regarding a private investment fund: The supervisor's reward fee is 20% of the earnings. If there is no clawback clause applicable, the total reward fee (in $ millions) under a U.S.-style waterfall is:

|                | Investment A | Investment B | Total |
|----------------|--------------|--------------|-------|
| Initial cost   | 100          | 150          | 250   |
| Profit/loss    | -50          | 30           | -20   |
Topic: Portfolio Management & Strategy

What is the actual yield for stocks, as per the historic geometric returns observed by a research analyst?

| Asset Class     | Geometric Return (%) |
| --------------- | -------------------- |
| Equities        | 8.0                  |
| Corporate Bonds | 6.5                  |
| Treasury bills  | 2.5                  |
| Inflation       | 2.1                  |
Topic: Asset Classes & Derivatives

Johnson collects data on spot rates for on-the-run yearly-coupon government securities and swap spreads, as shown in the Exhibit below. Johnson purchases a four-year, zero-coupon corporate bond and then sells it after two years. Johnson demonstrates the returns from this approach using the swap rate as a substitute for corporate yields. What should Johnson display as a total return?

|                        | Maturity (Years) |     |     |     |
|------------------------|------------------|-----|-----|-----|
|                        | 1                | 2   | 3   | 4   |
| Government spot rate   | 2.25%            | 2.70% | 3.30% | 4.05% |
| Swap spread            | 0.25%            | 0.30% | 0.45% | 0.70% |