Monthly Archives: July 2007

Interview Question: F vs. student-t

Sample Question #53 (statistics) What are F-tests used for? What’s the relationship between an F-stat and a t-stat? Really tough: Can you prove this relationship mathematically? Advertisements

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Interview Question: Swap the Loss

Sample Question #52 (finance – derivatives) Why is the expected loss from a default on a swap less than the expected loss from the default on a loan with the same principal? [Taken from chapter 7 of Hull, Options, Futures and … Continue reading

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Interview Question: Spread the Point, Part 2

Sample Question #51 (case-type financial econometrics question) I’d like to model the movement of price spreads. What are some of the models you can think of that can do this? (The models can be theoretical or empirical.) (Hint: remember, case questions are … Continue reading

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Interview Question: Spread the Point

Sample Question #50 (finance – capital market) Why do price spreads exist in asset-trading markets? Can spreads ever be negative? If so, under what conditions? Tougher: what are some examples of markets where price spreads do not necessarily exist? (Hint: … Continue reading

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Making Your Resume Stand Out

As I was in the shower thinking about improving my own resume – which, needless to say, follows the same advice I give you in my book (BTW, I don’t think about my resume in the shower all the time!) … Continue reading

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Interview Question: OLS in Excel

Sample Question #49 (general computing – Excel) There are at least two ways in Excel to perform an OLS regression. What are they? What are some of the limitations of doing OLS in Excel (as opposed to using a real … Continue reading

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Interview Question: Lower Bound for Calls

Sample Question #48 (finance – options) What is the lower bound for the price of a European call option on a non-dividend-paying stock? Can you derive this lower bound in a formal fashion? Now, what if the call option is … Continue reading

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