Hult International Business School

• FINANCE financial

• MODULE 1 (Due on September 3) Lesson 1 1. Which of the following professions has the highest projected employment for 2024? Financial Advisor Truck driver Teacher Economist 2. Which of the following is NOT a learning objective in this course? How to make money How we incentivize people to get things done Regulating financial markets Applying psychology and sociology to finance 3. According to Andrew Carnegie, what should somebody do once she is wealthy? Retire early and commit to philanthropy while young Pass it on to her children Retire late to accumulate as much wealth as possible, and then give the wealth away Throw extravagant parties to help her wealth trickle down 4. Why is it relevant that finance tends to attract large amounts of money? Finance attracts people from around the globe All of the above Money can be used for good or evil Financial markets are a critical components of economic success Lesson 2 1. A stress test: (check all that apply) Tries to incorporate all potential economic and financial crises, such as recessions, appreciation and depreciation of currency, liquidity crisis, etc. Tries to incorporate all the interconnections between financial institutions. Does not look at historical returns, and looks at all the details of the portfolios and their vulnerabilities during all sorts of potential financial crises. Aims to test the behavior of historical returns and their fluctuations during all sorts of potential financial crises. 2. A 5% 3-month Value At Risk (VaR) of $1 million represents: A 5% decline in the value of the asset after 3 month, per each $1 million of notional A 5% chance of the asset increasing in value by $1 million during the 3-month time frame. The likelihood of a 5% of $1 million decline in t