Question 1

What does MOOC stand for?

Your Answer
Massive open online course

Score

Correct

Explanation

1.00

The sound a cow makes when it has the hiccups

Total

1.00 / 1.00

Question Explanation
I just needed a place-holder quiz question so that the question numbers correspond to the section labels in the week 1 slide deck.

Question 2
Suppose an investor buys a perpetual annuity that pays $674.16 annually but agrees to let the seller skip the first two payments. How much should he pay
if the interest rate is 6%? (Answer should be provided as a numerical answer)
Answer for Question 2
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Your Answer

11236-1236

Score

Correct

Total

Explanation

1.00

1.00 / 1.00

Question Explanation
Calculate the value of a perpetual annuity that pays $674.16 annually then subtract the value of an annuity that makes two annual payments of $674.16.

Question 3
Which of the following statements is not a definition of a limit?

Your Answer

The limit of g(x) as xa exists, is finite, and equal to l if and only if for any >0, there is >0such that |

g(x)l|< for all x>.

The limit of g(x) as xa exists, is finite, and equal to l if and only if for any >0, there is >0such that |

Score

Corre
ct

1.00

Explanation

g(x)l|< for all x in (a,a+).

The limit of g(x) as x exists, is finite, and equal to l if and only if for any >0, there is >0such that |

g(x)l|< for all x>.

Total

1.00 /
1.00

Question 4
Let f(x)=x21x1. Compute the limit of f(x) as x1 by factoring the numerator. (Answer should be provided as a numerical answer)
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Your Answer

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Question Explanation
Factor the numerator x21=(x+1)(x1).

Score

Correct

1.00

1.00 / 1.00

Explanation

Question 5
The function f(x)=x21x2+1 is continuous for all real values of x.

Your Answer

Score

True

Correct

Explanation

1.00

False

Total

1.00 / 1.00

Question Explanation
Polynomials are continuous everywhere and rational functions are continuous as long as the denominator is not equal to zero.

Question 6
Use the definition of the derivative to compute the derivative of the function f(x)=x21.
Answer for Question 6
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Your Answer

Score

2*x

Correct

Total

Explanation

1.00

1.00 / 1.00

Question 7
Compute the derivative of the function f(x)=x2sin(x2).
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Your Answer

2*x*(sin(x^2)+(cos(x^2)*(x^2)))

Total

Score

Correct

Explanation

1.00

1.00 / 1.00

Question Explanation
Think of f as the product of x2 and sin(x2) and use the product rule. Don't forget to use the chain rule when computing the derivative of sin(x2).

Question 8
The function f(x)=x32x2 has a critical point at x=43. Is it a minimum or a maximum?

Your Answer
Minimum

Score

Correct

Explanation

1.00

Maximum

Total

1.00 / 1.00

Question Explanation
Compute the second derivative of f and evaluate it at the critical point x=43.

Question 9
Which of the following statements is incorrect?

Your Answer

Score

Explanation

Duration can be negative.

Correct

1.00

Duration measures interest rate sensitivity.

The units of duration is years.

Total

1.00 / 1.00

Question Explanation
Duration is a weighted average of future times so it can not be negative.

Question 10
Let f(x)=x21x1. Use lHopitals rule to compute the limit of f(x) as x1. (Answer should be provided as a numerical answer)
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Your Answer

Total

Score

Correct

Explanation

1.00

1.00 / 1.00

Question Explanation
Since limx1g(x)=limx1x21=0 and limx1h(x)=limx1x1=0, limx1f(x)=limx1g(x)h(x)=limx1g(x)h(x).