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

If the bid-side quote for the CAD/BRL from a merchant is C$0.5250, what is the profit for Johnson from a US$1,000,000 initial investment in the triangular arbitrage opportunity?

| Country       | Currency   | Spot Exchange Ratea    | One Year Risk-free Rate | Expected Annual Inflation Rate |
|:-------------:|:----------:|:----------------------:|:-----------------------:|:----------------------:|
| United States | US$        | NA                     | 4.80%                   | 2.30%                  |
| Canada        | C$         | 1.2138-1.2259          | 4.10%                   | 1.90%                  |
| Brazil        | Real (BRL) | 2.3844-2.4082          | 8.80%                   | 6.30%                  |

aNumber of foreign currency units per one U.S. dollar.
Topic: Portfolio Management & Strategy

The research team gathered the following data: Can you compute the value added for the portfolio?

| Asset class     | Portfolio weight (%) | Benchmark weight (%) | Portfolio return (%) | Benchmark return (%) |
|-----------------|----------------------|----------------------|----------------------|----------------------|
| Domestic        | 45                   | 50                   | 12                   | 10                   |
| International equity | 25           | 20                   | 15                   | 12                   |
| Bonds           | 30                   | 30                   | 7                    | 8                    |
Topic: Asset Classes & Derivatives

Position 1 (FTSE 100 Futures Contract): Harmony Capital maintains a long position in a FTSE 100 futures contract that is set to mature in three months. The Nikkei 225 Stock Index has a continuously compounded dividend yield of 1.1%, and the current level of the stock index is 16,080. The constantly compounded yearly interest rate is 0.2996%. What is the prevailing no-arbitrage futures price of the FTSE 100 futures contract (Position 1)?
Topic: Corporate & Securities Issuance

What is the company's total degree of leverage (DTL), based on the information provided for the company?

| Revenue        | £800,000 |
| -------------- | -------- |
| Variable cost  | £400,000 |
| Fixed cost     | £200,000 |
| Operating income | £200,000 |
| Interest       | £60,000  |
| Net income     | £140,000 |
Topic: Accounting

Carlos Perez from the Uruguayan company LUIGI Ltd., is calculating the depreciation expense of manufacturing machinery for the financial year closing on 31 December 2009. The machinery was purchased on 1 January 2009. Given the information gathered by Perez, what would be the amount of depreciation expense (in UYP) on LUIGI's profit and loss statement related to the manufacturing machinery, if LUIGI uses the units-of-production method? (Currency in Uruguayan pesos, UYP).


|                                             |                               |
|---------------------------------------------|-------------------------------|
| Cost of the equipment                       | UYP 1,200,000                 |
| Estimated residual value                    | UYP 200,000                   |
| Expected useful life                        | 8 years                       |
| Total productive capacity                   | 800,000 units                 |
| Production in FY 2009                       | 135,000 units                 |
| Expected production for the next 7 years    | 95,000 units each year        |
Topic: Accounting

Sephora is a US-operated company that specializes in the sale of beauty products. It has a Canadian branch, Glossy Inc, that only carries out operations in Canada. It was established on 31 December 2015, and Glossy Inc uses the US dollar as its main currency. Let's consider that fixed assets were purchased at the company's conceptual stage. The financial statement details for the years ending 2015 and 2016 are provided in the adjacent table: Can you compute the converted value of Glossy Inc's retained earnings as of 31 December 2016?

markdown
|                                      | 2015 | 2016 |
|--------------------------------------|------|------|
| **Cosmetic firm B.S for the ending 31 December** |      |      |
| 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: Accounting

Based on the given financial reports for Company B, what is the value of the operating cash flow?

| Net income | | $55 million |
|---|---|---|
| Depreciation | | $3 million |
| Balance Sheet Item | 12/31/2016 | 12/31/2017 |
| Accounts receivable | $18 million | $20 million |
| Inventory | $22 million | $17 million |
| Accounts payable | $6 million | $3 million |
Topic: Asset Classes & Derivatives

For a price-weighted index made up of securities XYZ, MNOP, and QRST, an analyst has collected the following data: The starting and ending prices (in €) and total dividends (in €) are as follows: XYZ with 25.00 to 27.00 along with 1.00 in dividends, MNOP with 35.00 to 25.00 and 1.50 in dividends, and QRST from 15.00 to 16.00 with 1.00 in dividends. What is the price return of the index?
Topic: Accounting

What is the return on equity (ROE) of the business that a financial examiner has determined?

| Operating profit margin | 17.5% |
|-------------------------|-------|
| Net profit margin       | 11.7% |
| Total asset turnover    | 0.89 times |
| Return on assets (ROA)  | 10.4% |
| Financial leverage      | 1.46  |
| Debt to equity          | 0.46  |
Topic: Asset Classes & Derivatives

John is a manager of a retirement fund who is interested in assessing the responsiveness of his retirement obligations to fluctuations in market interest rates. Supposing the base rate is 9%, with a 100 basis point rise in rates up to 10%, and a 100 basis point decrease in rates down to 8%. The associated data is given as follows: The effective duration of the retirement fund's obligations is:

| Interest Rate Assumption | Present Value of Liabilities |
|-------------------------|-----------------------------|
| 8%                      | $ 436.2 million             |
| 9%                      | $ 357.5 million             |
| 10%                     | $ 298.1 million             |
Topic: Accounting

The details for a particular business are given. What is the cash conversion cycle (in days) of this business?

|                     | $ millions |
|---------------------|------------|
| Sales               | 4,800      |
| Cost of goods sold  | 2,880      |
| Purchases           | 2,940      |
| Average receivables | 625        |
| Average inventory   | 710        |
| Average payables    | 145        |
Topic: Portfolio Management & Strategy

According to the data collected by the researcher, using the capital asset pricing model, what is the predicted return for Investment A if the anticipated market risk premium is 6% and the risk-free rate is 3%?

| Expected Security Standard Deviation (%) | Beta |
| --- | --- |
| Security 1 25 | 1.50 |
| Security 2 15 | 1.40 |
| Security 3 20 | 1.60 |
Topic: Asset Classes & Derivatives

Smith investigates a technique driven by an event, precisely a potential fusion of B Corporation and U, Inc. B has proposed to acquire Unicorn through a stock-for-stock agreement: the offer ratio is 2 shares of B for every 3 Unicorn shares. B's trading price was €50 per share before the announcement of fusion, but it decreased to 45 euros per share after the declaration. Before the announcement, U's transaction price per share was 15 euros, and it appreciated to €20 per share with the expectation of the fusion deal getting necessary permissions and successfully concluding. If we assume the fusion between B and U comes to a successful close, what will be the result of Smith’s merger arbitrage trade if he purchases 24,000 U shares at a rate of 20 euros per share, and goes short on 16,000 B shares at a rate of 45 euros per share?
Topic: Quantitative Analysis & Valuation

On September 7, 2016, Bank XYZ initiated a 2-year interest rate swap contract. Per the terms of the swap, Bank XYZ was slated to receive a fixed 4.10% rate while paying a rate equivalent to LIBOR plus 1.30% on a principal amount of USD 7.5 million. Payments were scheduled biannually. The table below presents the actual annual 6-month LIBOR rates measured over the contract's 2-year lifespan: Assuming there was no default, what amount did Bank XYZ receive on September 7, 2018?

| Date        | 6-month LIBOR |
|-------------|---------------|
| Sep 7, 2016 | 2.46%         |
| Mar 7, 2017 | 1.13%         |
| Sept 7, 2017| 0.79%         |
| Mar 7, 2018 | 0.42%         |
| Sep 7, 2018 | 0.56%         |
Topic: Accounting

Smith is a tax consultant who gives tax planning guidance to individual clients. A client of Smith's is Rose who presently has $10 million invested in a tax-deferred account that generates 8% every year. Rose will offload the investment after five years, collect the sales revenue all at once (withdrawals are taxed at 20%), and use the funds to buy a mansion. Rose requested Smith to estimate the after-tax wealth available after five years. What will be the after-tax wealth in Rose's tax-deferred account at the end of the five years?
Topic: Portfolio Management & Strategy

What is the beta of security x, βx, considering the following information about a stock market index y and security x?

| Statistic | Value |
| --- | --- |
| Covariance between market return and security return [Cov(Rj,Rm)] | 0.01104 |
| Correlation coefficient between market return and security return (pi,m) | 0.3 |
| Standard deviation of market return (σm) | 0.16 |
Topic: Portfolio Management & Strategy

The overall investment goal of XY endowment is to sustain the real buying power of its portfolio after disbursements. The risk-free rate stands at 2%. An anticipated inflation rate is 1.5%. The cost of returns on earnings investment is 50 bp. XY aims at a 3% annual distribution of assets. Exhibit 1 presents key findings from a mean-variance optimization where the weights of the asset class are bound to be non-negative. To reach XY’s expected return, what is the most suitable percentage for XY’s investment in the corner portfolio?

| Portfolio Number | Expected Nominal Returns | Standard Deviation | Sharpe Ratio |
|------------------|--------------------------|--------------------|--------------|
| 1                | 3%                       | 2.50%              | 0.4          |
| 2                | 4%                       | 4.44%              | 0.45         |
| 3                | 5%                       | 6%                 | 0.5          |
| 4                | 6%                       | 6.15%              | 0.65         |
| 5                | 7%                       | 8.33%              | 0.6          |
| 6                | 8%                       | 10.90%             | 0.55         |
Topic: Quantitative Analysis & Valuation

Assuming that 'Z' is a discrete random variable, and the set of potential Z values constitutes Z= {20,21,22,23,24,25}. With the cumulative distribution function's probable value denoted in the chart, can you tell the likelihood that Z equals either 23 or 25?

|   | Cumulative Distribution Function |
|---|---|
| Y=y  | F(y)=P(Y≤y) |
| 20 | 0.08 |
| 21 | 0.20 |
| 22 | 0.30 |
| 23 | 0.55 |
| 24 | 0.75 |
| 25 | 1.00 |
Topic: Asset Classes & Derivatives

The corporation engages in a 2 × 5 receive-fixed FRA that has an advanced set, advanced settled with a notional amount of $100,000,000. The correct discount rate for the FRA settlement cash flows stands at 1.5%. Following 60 days, the 90-day Libor is 0.80%, and the 60-day Libor is 0.7%. If the original price of the FRA was pegged at 1.20%, what will be the settlement payment received for the 2 × 5 FRA?
Topic: Quantitative Analysis & Valuation

After finalizing the chosen features, Thompson executes a model on the training set which identifies the text as either positive sentiment (Class “1”) or negative sentiment (Class “0”). Subsequently, she assesses its effectiveness through error analysis. Referring to Exhibit 1, what is the precision metric of the model as per the given confusion matrix?

|               |           | Actual training |      |
|---------------|-----------|-----------------|------|
|               |           | results         |      |
| Predicted     |           | Class "1"       | Class "0"     |
| Results       | Class "1" | TP=182          | FP=52 |
|               | Class "0" | FN=31           | TN=96 |
Topic: Risk Management

A shareholder is evaluating the market risk of Orion Portfolio. The portfolio delivers an anticipated annual return of 6.8% and a volatility of 7.0%, and it is benchmarked in contrast with the S&P 500 Index. The shareholder presupposes that the S&P 500 Index has a projected annual return of 7.2% and a volatility of 8.2%. In accordance with the CAPM, if the risk-free rate is 2.2% per annum, what is the beta of Orion Portfolio?
Topic: Asset Classes & Derivatives

A customer, Alice Thompson, thinks that large-cap stock prices will witness a slight increase, and she wishes to benefit from this trend using a bull spread technique. Parker suggests that Thompson utilize 1/100 options of the Dow Jones Industrial Average (DJX) which will expire in two months. The current DJX price stands at $91. Exhibit 1 offers current information on two DJX call options which will expire within two months. Exhibit 1 DJX Call Options Expiring in Two Months Thompson decides to use 100 contracts for each position. Each contract equals 100 shares. At the DJX call options expiration, what is the maximum potential gain from the bull spread strategy suggested for Thompson?


| Exercise Price ($) | Option Premium ($) | Delta |
|--------------------|--------------------|-------|
| 88                 | 4.40               | 0.75  |
| 94                 | 1.00               | 0.30  |
Topic: Quantitative Analysis & Valuation

Using the hybrid approach, what is the 5% VaR for a portfolio with 100 weeks of return history, with its lowest returns over six weeks illustrated in the chart?

|   | Six lowest week returns | Hybrid  Weights | Hybrid  Cumulative weights |
|---|-----------------------|--------------|---------------------------|
| 1 | -10.2%                   | 0.0105         | 0.0105                           |
| 2 | -9.1%                   | 0.0150          | 0.0255                           |
| 3 | -7.8%                   | 0.0082          | 0.0337                           |
| 4 | -6.0%                   | 0.0043          | 0.0380                           |
| 5 | -5.5%                   | 0.0153          | 0.0533                           |
| 6 | -4.9%                   | 0.0115          | 0.0648                           |
Topic: Accounting

A researcher obtained the data from a business's 2018 financial reports (in $ millions): The business proclaimed and paid cash dividends of $10 million and recognized depreciation expenses of $25 million in 2018. The business views the disbursal of dividends as a financing operation. What was the business's operational cash flow in 2018 (in $ millions)?

| Balances as of Year Ended 31 December 2017-2018 |      |      |
|-------------------------------------------------|------|------|
| Retained earnings                               |120 145|      |
| Accounts receivable                             | 38 43|      |
| Inventory                                       | 45  48|      |
| Accounts payable                                | 36 29|      |
Topic: Asset Classes & Derivatives

If an analyst named Mary is attempting to evaluate a corporation's stocks, considering that the company recently paid a dividend of $0.50 per share and the dividend is predicted to increase by 25% in the following year, and by 10% in the subsequent year. Furthermore, from the third year and onwards, the dividend expansion is foreseen to be 5% per annum. Given an 8% required rate of return, what would be the stock's intrinsic value?
Topic: Accounting

Given the cash flow data in the following table, what was the cash-flow-based accruals ratio for the company PZ in the year 2018?

|                                                     | 2018  | 2017  | 2016  |
|-----------------------------------------------------|-------|-------|-------|
| Net income                                          | 3,560 | 2,071 | 1,295 |
| Net cash flow provided by (used in) CFO             | 8,850 | 4,220 | 2,990 |
| Net cash flow provided by (used in) CFI             | (9,880)| (3,250)| (4,875)|
| Net cash flow provided by (used in) CFF             | (5,120)| 1,050 | (1,910)|
| Average net operating assets                         | 42,000| 40,530| 41,600|
Topic: Accounting

A business expert intends to evaluate a private corporation using the FCF Model. To calculate the free cash flow for all capital providers, what is the free cash flow value the expert intends to find, considering the gathered information (in million)?

| Operating cash flow | 500 |
|---------------------|-----|
| Interest paid       | 30  |
| Investment in working capital | 80 |
| Investment in fixed asset | 60 |
| Tax rate | 30% |
Topic: Accounting

What is the impairment loss (in C$) associated with the printing equipment of a Canadian printing firm that complies with IFRS, given the drop in demand for its products during this fiscal year end?

|                               |   C$   |
|-------------------------------|--------|
| Carrying value of equipment (net book value)   | 500,000|
| Undiscounted expected future cash flows | 550,000|
| Fair value | 480,000 |
| Costs to sell | 50,000 |
| Value in use | 440,000 |
Topic: Accounting

If a researcher uses four separate assessment measures on a group of 1,200 possible investments, what is the estimated number that will successfully pass through all four assessments?

| Valuation Screen | Probability of Passing |
|------------------|------------------------|
| 1                | 0.65                   |
| 2                | 0.45                   |
| 3                | 0.40                   |
| 4                | 0.30                   |
Topic: Accounting

A researcher has collected the below stats: the chance of economic prosperity is 75%, while the possibility of recession stands at 25%. For a business, there's a 10% probability of its EPS being $2.0 and a 90% likelihood of having an EPS of $4.0 during prosperous times. However, during a recession, there is a 25% chance that the EPS might be $2.0 and a 75% possibility that the EPS might be $4.0. What is the variance of this business's EPS in an economic downturn?
Topic: Accounting

In early January 2015, a market researcher spotted a news report stating that a company he's tracking (which submits reports under US GAAP) would be compelled to cut production from a key product line at its highly specialized ceramics factory, due to a new technology launched by a main competitor. The table encapsulates data and predictions from different sources regarding the factory and its forthcoming possibilities. Assuming the chosen information associated with the Ceramics Production Plant by the close of 2014 (in $ thousands) is correct, what would be the depreciation expense to be accounted for in 2015 concerning the factory?

| Carrying amount of plant | 1,604 |
|-------------------------|-------|
| Undiscounted expected future net cash flows | 1,350 |
| Present value of expected future net cash flows | 1,050 |
| Fair value of plant | 1,225 |
| Revised estimate of useful life | 4 years |
| Depreciation method | Straight line |
| Revised estimate of residual value | $200 |
Topic: Accounting

Bergen Inc. commenced business operations in 2007 and implements the FIFO method. In its first year, it bought 45,000 units of inventory for €10 per unit and sold 40,000 units at €20 each. The following year, it acquired another 50,000 units at a cost of €11 each and made sales of 45,000 units priced at €22 each. Using a periodic inventory system, what was Bergen Inc.'s ending inventory balance in € thousands for 2008?
Topic: Quantitative Analysis & Valuation

John is looking to aid his friend Lisa in forecasting the revenue of her store in October 20X9, thus he uses the income from January 20X6 to September 20X9 as examples to create an AR(2) model and attains the following result: X ^ t+1 =1.3458+0.8912Xt+0.3372Xt-1. What would the forecasted revenue of Lisa's store be in October 20X9, provided the income for August 20X9 is $2746.72 and the income for September 20X9 is $2957.63?
Topic: Accounting

A Brazilian firm, CRIXUS Inc., takes out a loan from a domestic bank to fund the building of its factory. The terms of the loan are as follows: It takes two years to construct the factory, during which CRIXUS made BRL 10 million by momentarily investing the loan amount. What is the value of interest pertaining to the factory construction (in BRL million) that can be capitalized on CRIXUS's balance sheet?

| Borrowing date   | 1-Jan-09                                |
|------------------|-----------------------------------------|
| Amount borrowed  | 500 million Brazilian real (BRL)  |
| Annual interest rate  | 14 percent                        |
| Term of the loan | 3 years                                 |
| Payment method   | Annual payment of interest only. Principal amortization is due at the end of the loan term. |
Topic: Accounting

A researcher is examining the degradation of the production machinery of Alpha Industries, a corporation based in the UK that abides by IFRS. What is the value of the impairment loss on Alpha Industries' income statement connected to its production machinery, based on the data collected about the machinery?

|   |   |
|---|---|
| Fair value  | £ 16,800,000  |
| Costs to sell  | £800,000  |
| Value in use  | £14,500,000  |
| Net carrying amount  | £19,100,000  |
Topic: Quantitative Analysis & Valuation

Johnson is looking to forecast the earnings of his manufacturing plant in the first quarter of 20X9. To do this he utilizes earnings data from the first quarter of 20X8 to the last quarter of 20X8 as examples to create an AR(1) model. However, he discovers that the autocorrelations of the residuals indicate a significant, strong seasonal autocorrelation. Johnson then adjusts the model to obtain the new equation, which is Xt=126.7537+0.1387Xt−1+0.9324Xt−4X_t=126.7537+0.1387X_{t-1}+0.9324X_{t-4}Xt​=126.7537+0.1387Xt−1​+0.9324Xt−4​. The income for each quarter in 20X8 is presented in the table below. Based on this new model, what is the

| Quarter                   | Income   |
|---------------------------|----------|
| The last quarter in 20X8 | $ 4257.63|
| The third quarter in 20X8| $4153.98 |
| The second quarter in 20X8| $4322.01 |
| The first quarter in 20X8| $5763.42 |