Quants Questions

devdutt.deshpande
Posts: 2
Joined: Fri Sep 11, 2015 4:07 am

Quants Questions

Postby devdutt.deshpande » Thu Jan 28, 2016 2:27 pm

Consider the following linear regression model: Y = a + b*X + e. Suppose a = 0.15, b = 0.9, Std(Y) = 0.39, Std (e) = 0.05, what is the correlation between X and Y?
Choose one answer.
a. 0.426 Correct
b. 0.852 Incorrect
c. 0.701 Incorrect
d. 0.462 Incorrect
The correct answer is A

I did not understand this answer. Please assist

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Re: Quants Questions

Postby edupristine » Wed Feb 10, 2016 11:22 am

Using the following set of equation should give the solutions:

Image

Image

Image

Image

Image


Return to “FRM Part I”



Disclaimer

Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to abuse@edupristine.com and we will rectify it.