Finance programmes at ³Ô¹ÏºÚÁÏ Business School are academically challenging and our students must have a high level of quantitative ability. To test your quantitative skills and determine whether you are suitable for one of our Finance programmes, please complete the Maths test below.

Please note, this Maths test only applies to candidates considering the MSc Finance, MSc Financial Technology, MSc Investment & Wealth Management and MSc Risk Management & Financial Engineering programmes.

All questions are required.

1. Optimisation

The profit of a firm depends on three positive input factors as follows: P of x-sub-1 and x-sub-2 equals 30 x-sub-1 minus x-sub-1 squared plus 60 times the natural log of x-sub-2 minus 4 x-sub-2.

Determine input factors which maximise the profit function and find the maximum profit. For simplicity please round to 2 decimal places. (required)

2. Matrix algebra

The firm AC/DC Associates manufactures ballet tutus and tights, in competition with Bob Dylan Co. and Queen Plc. Last season the Gaga Ballet Company purchased items from all three companies. Purchases — tutus: 20 from AC and DC Associates, 10 from Bob and Dylan Co., 20 from Queen Plc.; tights in pairs: 20, 30 and 10 respectively. Cost of items — tutus: 30, 40 and 50; tights in pairs: 20, 20 and 15 respectively. Let Q be the 2 by 3 matrix of purchases and C the 2 by 3 matrix of costs per item.

Compute the product C transpose Q. What do the diagonal entries of the product represent? (required)

3. Simultaneous Equations and Linear Algebra

Find the solution vector of the following linear system. (required)

3 x-sub-1 plus 2 x-sub-2 minus 2 x-sub-3 equals 1; 2 x-sub-1 minus x-sub-2 plus x-sub-3 equals 3; x-sub-1 plus 3 x-sub-2 minus 2 x-sub-3 equals 1.

4. Ordinary Differential Equations

Find the solution for the differential equation d y by d x plus 7 x equals 0, given y of 0 equals 3. Evaluate this answer for x equals 1. (required)

5. Probability

This one is harder, so do not worry if you find it too difficult. Let p denote the probability that a firm fiddles its books; suppose p equals 0.1. Also suppose a financial professional services firm keeps auditing firms until they have found 3 bad ones.

Compute the probability that they will need to audit exactly 6 firms. (required)