Interview question

Discussion in 'Risk Management' started by Soon2Bgreat, Jan 29, 2012.

  1. If you know differential equations even slightly, you would realize how damned important it is to deal with that '+c' correctly. I think you should lose the points in a first year calculus course so you don't pay heavilly for that mistake in future courses.
     
    #51     Jan 30, 2012
  2. I think you're confusing ego and emotion. If there is no emotion there can be no ego problems in trading, as long as you stick to what you've backtested, the results will come more naturally than if you are trying to force trades that aren't part of your plan.
     
    #52     Jan 30, 2012
  3. There was +c in the other 30 problems. Again, after the u substitutions I just got careless, and rather than get a 100% I ended up with 97.5% for First or Second Exam Calc II.
     
    #53     Jan 30, 2012
  4. A more accurate word would be hubris: You keep referencing your CFA and your minor in math to differentiate yourself from other people on this forum. What you fail to accept is that this forum is full of people who are just as smart and educated if not more intelligent and better educated than you. Your condescending approach is pure hubris.
     
    #54     Jan 30, 2012
  5. S2007S

    S2007S


    exactly there shouldnt be but it seems there is.

    :D
     
    #55     Jan 30, 2012

  6. Sorry, but you missed by 0.2!! :D :D

    Yep, you gave the correct answer 10 pages ago.
     
    #56     Jan 30, 2012


  7. Start with $1,000.

    Example A:

    After year 1 you have $1,200 (20% gain)
    After year 2 you have $1,440 (20% gain)
    After year 3 you have $1,728 (20% gain)
    After year 4 you have $2,073.60 (20% gain)
    After year 5 you have $1,036.80 (50% loss)

    Example B:

    After year 1 you have $500 (50% loss)
    After year 2 you have $600 (20% gain)
    After year 3 you have $720 (20% gain)
    After year 4 you have $864 (20% gain)
    After year 5 you have $1,036.80 (20% gain)
     
    #57     Jan 30, 2012
  8. So you come here for douchey replies.. lol
    Anyways, like the other guy said, you're out of a job after either 50% whacks


     
    #58     Jan 31, 2012
  9. newwurldmn

    newwurldmn

    This isn't necessarily true. You are out of a job the day your investors lose confidence in you. If you are up 100% and then lose 50%, but your investors believe it won't happen again, then you will get to operate. If on the other hand you are up 100% but your investors lose faith in you, you are done.
     
    #59     Jan 31, 2012
  10. A fair point - though in reality ET provided much more pragmatic answers than what was discussed during the interview. They had zero interest in discussing the impact of the drawdown or reasons why, kind of boring.:)
     
    #60     Jan 31, 2012