How does GS make its revenues?

there is n steps and each time a rabbit can jump either 1 or 2 step. how many way to reach the top

Flip a coin until either HHT or HTT appears. Is one more likely to appear first? Can you draw a graph to show it?

Given a basket of 5 independent stocks where the probability density function for the daily change in price of each stock is described by an N(0,1) distribution, determine the PDF of the entire basket.

what different multiples I would use for different type of companies.

Two lines of ants move toward each other on a platform. For each single ant, it changes its direction when it hits another ant. What happens in the end and when does that happen?

If you were to price a bond in an emerging market, what would be the process by which you would do so, and what risks would you consider?

Why does the yield curve typically curve upwards?

a 3 gallon bucket and a 5 gallon bucket. How do you get 4 gallons?

How do you invest $1M, $50M, $1B? Would you rather paid $1M or work for us?

13x13x13

If the slice of pizza is 1.25, what is the margin

what is the angle of arms for 4:15 for a clock?

10 if standard deviation of continuous one-period random walk is 10%, what of it for 4-time periods?

Why are images in a mirror flipped horizontally and not vertically?

(Monty Hall) In a game u r offered 3 doors, 2 empty, 1 with $100K behind. U chose Door 3 and Host open door 2 showing empty. Should you switch to Door 1?

Answer

P(B1|H2) =P(B1^H2)/P(h2)=P(H2|B1)*P(B1)/P(H2)=1*0.3333/0.5=2/3 >1/3 (H=Host Open i b=behind i)


P(H2) = Partition Sum =P(H2|B1)*P(B1)+P(H2|B2)*P(B2)+P(H2|B3)*P(B3)

Host knows not to open Door 1 so P(H2|B1)=1, P(H2|B2)=0
Host knows safe to open either door 1 or 3 so P(H2|B3)=1/2 to be fair.
So P(H2)=1*1/3 +0*1/3 + 1/2*1/3=1/2


Some basics:
P(AUB) +P(A^B)=P(A)+P(B)
P(A|B) = P(A^B)/P(B) by definition
P(A) = Sum of P(A|pi)*P(pi)  where {Pi} is a partition.

You know among 4 stocks price at 25,23,22,24, three will go to 0 and one will go to 100. How do you arbitrage?

Answer

Buy All +1,+1,+1,+1

Tell me about the current bond market? compare it to the equity market?

toss a fair coin until you get two heads in a row and find the probability of tossing 5 times.

if x is in (0,1), how many times is cos(ln(x)) = 0?

Explain what consequences the drop in oil price might have for other sectors.

How come Uber is valued almost as much as General Motors?

A car is going fast on a road. There is a man in the middle of the road. Due to a major blackout, all the lights in the street are not working. The car battery has a problem so its lights don't work either. There are no emergency battery-powered lights etc... However, the car avoids the man in the middle of the road. How/Why?

Why doesn't Greece leave the Euro?

which company has the highest beta, GM HP or Zynga? How would you value the Eiffel Tower?

What multiples would you use to value a consumer goods department store and how would you go about that?

Where is the VIX at right now?

How would you value a tech company with no revenue?

Would you rather have a million dollars or a job at MS?

How do you calculate WACC

what would you price higher: a call option on S&P or 500 call options on each of the companies?

Whats in my own portfolio and why! (What are on your market Watch in TOS)

17/18 as an exact decimal

What is QE?

what is 7x7x7x7, 9x9x9x9 ? What is 32x32? What is square root of 9000?

What is CAPM?

Answer

Capital Market Pricing Model
This is market discount rate reflecting beta risk, TSLA has more beta than GM

What is DCF ? How it compares to LBO?

Answer

DCF=Discount Cash Flow valuation Model.

Discount = Z(0,T) zero coupon bond pricing= (1+i)^(-T) so it discounted from future back to today.

Cash Flow = either dividend on a stock or Future Cash flow projection on Cash Flow Statement.

So we can value both Market Instrument and A business, which have different i= r (exp return) or =WACC

LBO is financier model, buy and sell not running buz, so use Multiples