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The following figures show the annual salaries in CHF of 20 GBS Mathematics of Finance
students doing Internship at Bank chains in Barcelona and Geneva.
Calculate the arithmetic mean, median, and mode Salary of the students.
1
15’180, 19’870, 14,375, 15’767, 15’870, 15’180, 14’375, 36’938, 15’180, 46’132,
15’525, 19’600, 14’375, 23’069, 16’767, 16’767, 17’880, 14’375, 14’375, 14’375

1. Total 5% Marks:
A Mathematics Investment analyst receives the following data showing the percentage
changes in Labor costs of Junior managers in an investment bank Chain over a 12-months
period. The highest change observed was +172 per cent for a senior manager in one of
Percentage Change Frequency
-5 to under 0 2
0 to under 5 32
5 to under 10 25
10 to under 15 10
15 to under 20 8
20 to under 25 3
25 to under 30 2
30 to under 35 5
35 to under 40 4
40 to under 100 3
100 to 172 4
a). What is the mean annual percentage change in Labor costs for Junior managers in
this investment bank?
b). What is the estimate of the Median Value? (3% Marks)
c). What is the modal class interval? (2% marks)
2. Total 5% Marks:
The following information applies to a portfolio composed of Fund A and Fund B.
Fund A Fund B
2
Portfolio weights (%) 70 30
Expected returns (%) 10 16
Standard deviations
(%)
7 13
Correlation between
the returns of Fund A
and Fund B
0.80
The portfolio’s standard deviation of return is closest to:
A. 7.38%.
B. 8.80%.
C. 8.35%.
3. Total 5% Marks:
You open a bank account today (06th April 2022) expecting that your dad will credit
money will have in your account after 10 years if your earn 6% interest semi-annually
compounded?
4. Total 5% Marks:
lump sum or as an annuity. The pension officer presents him with two alternatives:
● An immediate lump sum of CHF 2 million
● An annuity with 20 payments of 200’000 each year starting today
The interest rate at your bank is 7% per year annually compounded. Which option