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Brain Teasers You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many of the smaller cubes is there any red paint?

Brain Teasers You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

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3 Quantitative Finance Society Asset Classes

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Page 1: Brain Teasers  You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

Brain Teasers You’ve got a 10 x 10 x 10 cube made up of 1 x

1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many of the smaller cubes is there any red paint?

Page 2: Brain Teasers  You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

Answer Larger cube is made up of 1000 smaller

cubes. The easiest way to think about this is how many cubes are NOT painted? 8 x 8 x 8 inner cubes are not painted which equals 512 cubes. Therefore, 1000 – 512 = 488 cubes that have some paint.

Page 3: Brain Teasers  You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

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Quantitative Finance SocietyQuantitative Finance Society

Asset Classes

Page 4: Brain Teasers  You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

Announcements Upcoming Presentations:

Anatomy of a Trade Derivatives

Portfolio Invites Successful candidates will be receiving an

email today about our portfolio meeting tomorrow

Page 5: Brain Teasers  You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

Market Update: The Macro View

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Page 6: Brain Teasers  You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

Asset ClassesEquitiesFixed IncomeCurrenciesCommoditiesAlternatives

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Page 7: Brain Teasers  You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

What determines the price of a security?

Supply & Demand

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Page 8: Brain Teasers  You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

Equities What determines the price of a stock?

Everyday movements, news Volume Market Psychology

Multiples (Comparables) Earnings, P/E EV/EBITDA

ETFs www.trefis.com

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Page 9: Brain Teasers  You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

Equities Different sectors, different way to value

Healthcare Tech Telecom Financials Consumer Discretionary Consumer Staples Utilities Industrials Energy Materials

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Page 10: Brain Teasers  You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

Fixed Income Governments

Rates – GDP, unemployment, inflation Corporates

Credit + Rates Mortgages

Credit + Rates Ratings

Investment Grade, High Yield, Crossovers10

Page 11: Brain Teasers  You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

Currencies Directly related to rates Purchasing Power Parity (PPP) Balance of Payments Carry Trade, Interest rate differentials Country-specific trade characteristics

USD, EUR, JPY, GBP, CHF CAD, AUD, NZD, SEK, NOK

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Page 12: Brain Teasers  You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

Commodities Gold & Precious Metals Oil, Natural Gas, other Energy Agricultural

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Page 13: Brain Teasers  You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

Alternatives Private Equity Venture Capital Hedge Funds Real Estate Collectibles

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Page 14: Brain Teasers  You’ve got a 10 x 10 x 10 cube made up of 1 x 1 x 1 smaller cubes. The outside of the larger cube is completely painted red. On how many

Questions?

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