Let N(.) denote the cumulative distribution function of the standard normal probability distribution, and N' its derivative. Which of the following is false?

The correlation between two asset returns is 0.5. What is the largest eigenvalue of their correlation matrix?

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

Which statement regarding the matrix below is true?

Which of the following statements is true for symmetric positive definite matrices?

A 2-year bond has a yield of 5% and an annual coupon of 5%. What is the Modified Duration of the bond?

A bond has modified duration 6 and convexity 30. Find the duration-convexity approximation to the percentage change in bond price when its yield increases by 5 basis points

A linear regression gives the following output:

Figures in square brackets are estimated standard errors of the coefficient estimates. What is the value of the test statistic for the hypothesis that the coefficient of is zero against the alternative that is less than zero?

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