Financial Forensics · End Term · May 2023 · AN

Christina will receive annuity payments of ₹1,200 a year for five years, with the first payment occurring at Year 4. What is the value of this annuity to her today at a discount rate of 7.25 percent?

One year ago, the Thompson family recreation hub deposited ₹ 4,600 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another ₹ 7,300 to this account. They plan on making a final deposit of ₹ 9,000 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 7 percent?

Calculate the net present value (NPV) of a greenhouse project involving an initial investment of ₹ 397,500. The project is expected to generate annual cash flows of ₹ 74,500 over an 8-year period, followed by a cash flow of ₹ 69,800 in Year 9. With a required rate of return of 8.6 percent, determine the project's NPV.

You aim to achieve a portfolio beta of 1.2 . Your existing portfolio comprises ₹ 150 invested in Stock A with a beta of 1.5 and ₹ 350 in Stock B with a beta of 0.7. An additional ₹ 500 is available for investment, which you intend to allocate between Stock C with a beta of 1.7 and a risk-free asset. Determine the amount to be invested in the risk-free asset to attain your target beta.

Calculate the weighted average cost of capital given a debt of ₹ 9,000, equity of ₹ 15,000, a cost of debt at 7.5 percent, a cost of equity at 15.5 percent, and a tax rate of 25 percent.

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 financing 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 ?

What is the net cash inflow (outflow) resulting from investing activities, considering the issuance of common stock for ₹ 25,000, the sale of office equipment for ₹ 2,400, payment of cash dividends amounting to ₹ 6,000, sale of investments for ₹ 3,500, and purchase of new equipment for ₹ 5,500?

Industries became Industri. This is an example of which of the following?

Input – Data scientists use a variety of tools and techniques to analyze large amounts of data and extract valuable insights Output – Data scientists use variety tools techniques analyze large amounts data extract valuable insights 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 ₹11,000. 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 additional profit bank could have earned by giving loans to declined good customers?

What is the rollback rate for C?

What is the roll forward rate for D?

How many applicants were in 60-89 DPD after 12 MOB?

What is the capture rate at top 10% percentile?

What is the KS of the below gains table?

Chennai Super Kings (CSK) team in IPL has trained a model using past IPL data to predict toss decision by taking ground factors, weather, team and time details. The PSI of the model in IPL 2023 is 0.23. Which of the following should be CSK’s next steps?

Joey had taken a credit of 200$ from the Chandler Bank. He had missed 3 instalments in total in the last 12 months and he has missed to pay the 10\(^{th}\), 11\(^{th}\) and 12\(^{th}\) month instalment. Which of the following delinquency buckets he fall into?

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 will not be 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 correct?

Fill the missing information to complete the confusion matrix below:

Total True Frauds = 520, Total data points that were predicted as non-Fraud = 10020

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 a recall 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 = Does it make sense to work hard today for a better tomorrow? D2 = All work and no play make JJ a dull boy. The Term Frequency (TF) for the word “work” for D1 and D2 is :

The following metrics can be used to calculate string similarity:

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

You had converted two words to a vectors having following values: A = [2,3,6,9,6] B = [1,3,5,7,5] The cosine similarity between them is:

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

In the following waterfall plot , identify the model predicted value.

What does "Local Interpretability" refer to in the context of machine learning?

From the following feature powerset , evaluate the ‘w1’ , weight of the marginal coalition.

In the shap.summary_plot bar plot, what does the y-axis represent?

If the Interaction Index between two features is close to zero, what does this suggest?