## Scholarship Test

TEST INSTRUCTIONS

TOTAL QUESTIONS = 40

AVAILABLE TIME = 60 minutes

Questions fall under following sections:

1. Basic of Algorithmic Trading: 8 questions in the section, which will test your existing knowledge on Algorithmic trading.
2. Statistics and Probability: These 8 questions are from topics in basic statistics and probability. This section will test your statistics skills and approach.
3. Options: This section consists of 8 questions which tests your current knowledge in Options & Derivatives.
4. Coding: Again, 8 questions which test your programming skills and knowledge.
5. General Aptitude: This section analyses your general aptitude and logical reasoning skills.

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1) What is true for Market orders?

2) When can you expect the slippage to be more?

3) If the Capital Asset pricing Model (CAPM) calculates the fund’s returns to be 10% and the fund actually gives 15% returns; then the fund’s alpha is___

4) If Beta for an asset is greater than 1

5) If we buy huge quantities of a stock in market, it will push the price up. This is called

6) What is a Marketable Limit Order?

7) Annualized standard deviation of past stock price movements is know as____.

8) Which of the orders can be cancelled while they are in the order book?

9) The standard deviation of a sample of 100 observations equals 64. The variance of the sample equals

10) The measure of dispersion that is influenced most by extreme values is

11) Assume this statistics section is a multiple-choice exam with 10 questions, each question having 4 choices, only one of which is correct. Assume you answer all questions at random, the expected number of questions you would get correct would be (Round Up the value)

12) A bag contains 4 red marbles and 5 blue marbles. Two marbles are randomly drawn without replacement. Find the probability that both marbles are red.

13) For the normal curve, the effect of increasing the mean results in

14) Mensa, the largest high-IQ society, accepts SAT scores as indicating intelligence. Assume that the mean combined SAT score is 1500, with standard deviation 300. Jack scored a combined 2070.
Maria took a traditional IQ test and scored 129. On that test, the mean is 100 and the standard deviation is 15.
From the test scores, who is more intelligent

15) Battery lifetime is normally distributed for large samples.  The mean lifetime is 500 days and the standard deviation is 61 days.  To the nearest percent, what percent of batteries have lifetimes longer than 561 days?

16) What is R-square in regression analysis?

17) In a bull spread using call options, you will:

18) If you want to replicate a synthetic ‘long’ future payoff using options, you will:

19) You will NOT need the following for calculating the option price using BS formulae:
(Hint: More than one option could be correct.)

20) Theoretically Currency options will have following kind of volatility curve:

21) Options for following asset class are NOT traded on exchanges in India:

22) If you buy a put option, you’ll be:
(Hint: More than one option can be correct.)

23) If you buy a put option and the underlying price goes up, then your delta will:

24) Which of the following will increase the value of a put option?

25) The keyword used to transfer control from a function back to the calling function is

26) In C Programming Language, you cannot call “main()” function recursively:

27) Which one of the following are essential features of an object-oriented programming language?
(i) Abstraction and encapsulation
(ii) Strictly-typedness
(iii) Type-safe property coupled with sub-type rule
(iv) Polymorphism in the presence of inheritance

28) Consider the following recursive C function that takes two arguments
unsigned int foo(unsigned int n, unsigned int r) {
if (n > 0) return (n%r + foo (n/r, r ));
else return 0;
}
What is the return value of the function foo when it is called as foo(345, 10) ?

29) What will be the values of x, m and n after execution of the following statements?
Int x, m, n;
m=10;
n=15;
x= ++m + n++;

30) Which of the following keywords are used to control access to a class member?

31) Suppose we have a O(n) time algorithm that finds median of an unsorted array.
Now consider a QuickSort implementation where we first find median using the above algorithm, then use median as pivot. What will be the worst case time complexity of this modified QuickSort.

32) You have to sort 1 GB of data with only 100 MB of available main memory. Which sorting technique will be most appropriate?

33) A train passes a station platform in 36 seconds and a man standing on the platform in 20 seconds. If the speed of the train is 54 km/hr, what is the length of the platform?

34) What number will come next in the series: 1, 1, 4, 8, 9, 27, __?

35) Fill in the blank in the following series: 1, 1, 2, 3, 5, _, 13, _, 34, 55

36) Piyush is older than Selena.
Joshua is older than Piyush.
Selena is older than Joshua.
If the first two statements are true, the third statement is

37) In Excel, to round the value 1.33 to 2.00 directly using the single function, you’ll use the following function:

38) If you write the following formulae in the cell “A6” in excel: “=IF(A5=4, IF(A5=MOD(A5,2),1,0), 4)”. If the value in cell number “A5” = 4, then cell value in “A6” would be:

39) What are your answers to the respective questions so that your answers to all the questions are correct?
——————————————
Question 1
The answer to Question 2 is:
A. B
B. C
C. A

Question 2
The first question with correct answer B is:
A. Question 3
B. Question 1
C. Question 2

Question 3
The only answer you have not chosen yet is:
A. A
B. B
C. C

40) A monk has a very specific ritual for climbing up the steps to the temple. First he climbs up to the middle step and meditates for 1 minute. Then he climbs up 8 steps and faces east until he hears a bird singing. Then he walks down 12 steps and picks up a pebble. He takes one step up and tosses the pebble over his left shoulder. Now, he walks up the remaining steps three at a time which only takes him 9 paces. How many steps are there?

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