Financial Forensics · End Term · May 2023 · FN

Nu-Tools plans to set aside an equal amount of money each year, starting today, so that it will have ₹ 25,000 saved at the end of three years. If the firm can earn 4.7 percent, how much does it have to save annually?

One year ago, the Jenkins Family Fun Center deposited ₹ 4,300 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another ₹ 6,100 to this account. They plan on making a final deposit of ₹ 8,300 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 6 percent?

Rossdale Flowers has a new greenhouse project with an initial cost of ₹ 297,500 that is expected to generate cash flows of ₹ 44,500 for 8 years and a cash flow of ₹ 59,900 in Year 9. If the required return is 7.6 percent, what is the project's NPV?

You desire a portfolio beta of 1.1. Currently, your portfolio consists of ₹ 100 invested in Stock A with a beta of 1.4 and ₹ 300 in Stock B with a beta of 0.6. You have another ₹ 400 to invest and want to divide it between Stock C with a beta of 1.6 and a risk-free asset. How much should you invest in the risk-free asset to obtain your desired beta?

A firm has debt of ₹ 7,000, equity of ₹ 12,000, a cost of debt of 7 percent, a cost of equity of 14 percent, and a tax rate of 21 percent. What is the firm's weighted average cost of capital?

Which of the following ratios is used to analyze profitability?

At the end of the financial period, how would an excess payment of taxes beyond its obligation be presented in the financial statements ?

Which of the following would not appear in the investing section of the statement of cash flows?

While recording transactions the accountants of a firm mistakenly treats a capital expenditure items as revenue expenditure. What is the effect of this error ?

Issued common stock for ₹ 18,000, sold office equipment for ₹ 1,200, paid cash dividends of ₹ 4,000, purchased investments for ₹ 2,000, purchased new equipment for ₹ 4,000. What was the net cash inflow (outflow) from investing activities?

Which of the following is the process of converting words into their base or root form?

Input – Artificial intelligence technologies are being increasingly integrated into various industries to automate and optimize processes. Output – Artificial intelligence technology be be increase integrate into various industry to automate and optimize process. Which of the following pre-processing to input results in this output?

As given in the confusion matrix of the classifier in Table 1, a bank provides loan to 300 prospects from a database. Selection of an actual good customer leads to an average profit of ₹10,000. Due to misclassification, if a bad applicant is selected for loan, an average loss of ₹30,000 will be incurred. Based on the data given in the confusion matrix (Table 1), what is the overall profit?

What is the number of False Negatives? PS: 1 is positive class, 0 is negative class

What is the rollback rate for A?

What is the roll forward rate for B?

How many applicants were in 0-29 DPD after 12 MOB?

What is the capture rate at top 30% (top 3 deciles)?

What is the KS of the below gains table?

Y is a metric that is used to decide if a model has to be trained again. It captures the change in environment in which model was trained relative to the environment in which the model is deployed. What is Y?

Let’s say you are bestowed with the responsibility of building an ML model for a popular fintech company for credit line assignment for its credit applicants. Credit line assignment is the process in the financial industry where lenders, banks, or credit card companies decide how much credit to extend to an individual or a business. It involves setting a specific maximum amount of money that a borrower is allowed to borrow or spend on a credit card or credit facility. Which of the following performance metric do you think will be best suitable for measuring your model’s performance:

A Fraud detection model a FinTech company is put to production which is used for flagging suspicious transactions from going through the company’s payment system. On a given day the 500 transaction attempts were made in the company’s payment system and the ML model has declined all the transaction attempts on the grounds of Fraud, upon taking a manual review it was noticed that all the 500 transaction attempts were indeed genuine. Now which of the following statement is True about the model.

Which of the following statement is incorrect?

Fill the missing information to complete the confusion matrix below:

Total True Frauds = 520, Total data points that are classified by the model = 10620

Presence of outliers will have a bad impact on Isolation Forest Algorithm, so they must be removed first before fitting the isolation forest model

A fintech company has a ML system that identifies transaction frauds that occur in its system. The model currently has an accuracy of 99.9%. The fraud rate, as reported by the company in its system is 20 BPS. On a regular day there are close to above 1 million transactions that happens via the company’s payment system, and for each fraudulent transaction the company losses INR 10 on an average. The annual savings (INR) brought in by the ML system is:

What is the purpose of the Dickey-Fuller test in time series analysis?

You have built a linear regression model for predicting the number of users who access your payment platform daily. The following table shows the model’s performance:

Consider the following statements and choose the right option below: Statement 1: Linear Regression is a not very good fit for this use case. Statement 2: Linear Regression is a very good fit for this use case. Statement 3: The model’s errors are not normally distributed.

There are two time series models A and B which have the following predictions, which of these is more accurate from the perspective for MSE? True value = [10, 12, 11, 15, 18, 20, 23] Predictions of A = [7, 11, 15, 15, 16, 19, 30] Predictions of B = [10, 11, 20, 16, 18, 25, 23]

What does the autocorrelation function (ACF) measure in time series analysis?

You have the following 2 documents with the text: D1 = Get Out Get Going D2 = Get along with the crowd The Term Frequency (TF) for the word “Get” for D1 and D2 is :

The following metrics cannot be used to calculate string similarity:

If cosine similarity between two string vectors is high, it means

You had converted two words to a vectors having following values: A = [1,4,6,8,2] B = [1,3,6,9,0] The cosine similarity between them is:

You had converted two words to a vectors having following values: A = [1,2,3,4,5] B = [5,4,3,2,1] The cosine similarity between them is:

Global explainability lets the model owner determine to what extent each feature contributes to how the model makes its predictions over all of the data.

In the following waterfall plot , identify the base value (explainer expected value):

tree_path_dependent is a “feature_perturbation” technique is used by default when there is no data provided to shap Tree explainer object.

From the following feature powerset , evaluate the ‘w4’ , weight of the marginal coalition.

In the context of the Interaction Index, what is the significance of negative values?