Online Access Free 8007 Practice Test

For the function f(x) =3x-x3 which of the following is true?

• A.x = 0 is a minimum
• B.None of these
• C.x = 2 is a maximum
• D.x = -3 is a maximum

Let A be a square matrix and denote its determinant by x. Then the determinant of A transposed is:

• A.x
• B.-x
• C.ln(x)
• D.x -1

At what point x does the function f(x) = x3 - 4x2 + 1 have a local minimum?

• A.0
• B.2.66667
• C.-0.666666667
• D.2

An asset price S is lognormally distributed if:

• A.ln(1+dS/S) is normally distributed
• B.the change in price (dS) is normally distributed
• C.1/S is normally distributed
• D.ln(dS/S) is normally distributed

Which of the following statements about variance and standard deviation are correct?
1. When calculated based on a sample of the population data, one has to correct for any bias in the result by using the number of degrees of freedom in the calculation
2. Variance is in square root units of the underlying data, whereas standard deviation is in units of the underlying data
3. When considering independent variables, variance is additive, while standard deviation is not

• A.All three statements are correct
• B.Statements 1 and 3 are correct
• C.Statements 1 and 2 are correct
• D.Statements 2 and 3 are correct