If you know differential equations even slightly, you would realize how damned important it is to deal with that '+c' correctly. I think you should lose the points in a first year calculus course so you don't pay heavilly for that mistake in future courses.
Interview question
- Thread starter Soon2Bgreat
- Start date
If you know differential equations even slightly, you would realize how damned important it is to deal with that '+c' correctly. I think you should lose the points in a first year calculus course so you don't pay heavilly for that mistake in future courses.
A more accurate word would be hubris: You keep referencing your CFA and your minor in math to differentiate yourself from other people on this forum. What you fail to accept is that this forum is full of people who are just as smart and educated if not more intelligent and better educated than you. Your condescending approach is pure hubris.
Quote from S2007S:
exactly there shouldnt be but it seems there is.
Sorry, but you missed by 0.2!!
Yep, you gave the correct answer 10 pages ago.
Start with $1,000.
Example A:
After year 1 you have $1,200 (20% gain)
After year 2 you have $1,440 (20% gain)
After year 3 you have $1,728 (20% gain)
After year 4 you have $2,073.60 (20% gain)
After year 5 you have $1,036.80 (50% loss)
Example B:
After year 1 you have $500 (50% loss)
After year 2 you have $600 (20% gain)
After year 3 you have $720 (20% gain)
After year 4 you have $864 (20% gain)
After year 5 you have $1,036.80 (20% gain)
This isn't necessarily true. You are out of a job the day your investors lose confidence in you. If you are up 100% and then lose 50%, but your investors believe it won't happen again, then you will get to operate. If on the other hand you are up 100% but your investors lose faith in you, you are done.
A fair point - though in reality ET provided much more pragmatic answers than what was discussed during the interview. They had zero interest in discussing the impact of the drawdown or reasons why, kind of boring.
