Serving the Quantitative Finance Community

• 1
• 2

CrashedMint
Topic Author
Posts: 2591
Joined: January 25th, 2008, 9:12 pm

### I give you $1000, how do you invest the money? Why? I must admit: The models/the math interests me, not the actual underlyers. But I have an interview next week and almost certainly they will ask this question. Is there some site on the web that has a quick daily report on the indices and interesting stocks? Something I could read in like 15minutes to get a general understanding of the current situation.And: If I asked YOU today "I give you$1000, how do you invest the money? Why?" what would be your answer?CM

aiQUANT
Posts: 91
Joined: June 4th, 2008, 6:20 pm

I would buy as many second hand computers as i can find.A quant is nothing without his machine, and it is more cost efficient to get many second hand computers and do parallel processing than one good computer for number crunching ($1000 doesn't get you much these days). Once I come up with a profitable quantitative trading strategy, it would be easy to raise capital and start reaping the rewards. trackstar Posts: 28004 Joined: August 28th, 2008, 1:53 pm ### I give you$1000, how do you invest the money? Why?

Pink Sheets
Last edited by trackstar on November 8th, 2008, 11:00 pm, edited 1 time in total.
See the ball, be the ball. - Ty Webb

Posts: 23951
Joined: September 20th, 2002, 8:30 pm

QuoteOriginally posted by: CrashedMintI must admit: The models/the math interests me, not the actual underlyers. But I have an interview next week and almost certainly they will ask this question. Is there some site on the web that has a quick daily report on the indices and interesting stocks? Something I could read in like 15minutes to get a general understanding of the current situation.And: If I asked YOU today "I give you $1000, how do you invest the money? Why?" what would be your answer?CMI would run away with it and laugh at you for not buying credit protection! farmer Posts: 13479 Joined: December 16th, 2002, 7:09 am ### I give you$1000, how do you invest the money? Why?

Go fuck yourself.
Last edited by farmer on November 15th, 2008, 11:00 pm, edited 1 time in total.

DominicConnor
Posts: 11684
Joined: July 14th, 2002, 3:00 am

### I give you $1000, how do you invest the money? Why? The suck-ass answer is of course "invest it in your bank".It's possibly the worst as well.Aside from the obvious "issues" in buying into financials at this time, it has tragically poor risk characteristics.By investing in the firm you work for you gain no extra return, but your risk is more concentrated, and there's the obvious issue that the time they are most likely to drop you is the time when their shares are doing very badly.That may sound a bit "academic finance", but ask Bear Stears, Lehman, or Enron staff how "academic" that might be.Traden4alpha outlines what is probably part of one "right" answer.Although the banks have screwed up, they haven't yet quite resorted to asking random people what to do next. Though nothing surprises me much now.They care about the quality of your thinking.Another valid form of answer is to "put it in 3 different banks that are back by government guarantee and wait for this shit to pass".This of course will lead them to ask "how will you know when we've hit the bottom" ? This is good because what you want is for them to ask questions that you think you have an answer.There exist many plausible ways of spotting the market, and with some luck you can then go into how to make money if you have a good way of spotting the market bottom.The trick here is to predict the follow-up questions, or even to try and induce them to ask ones you believe you can do well at. Last edited by DominicConnor on November 7th, 2008, 11:00 pm, edited 1 time in total. quantmeh Posts: 5974 Joined: April 6th, 2007, 1:39 pm ### I give you$1000, how do you invest the money? Why?

buy a lottery ticket. then be ready to explain why it's a thoughtful choice based on modern investment theory

CrashedMint
Topic Author
Posts: 2591
Joined: January 25th, 2008, 9:12 pm

### I give you $1000, how do you invest the money? Why? QuoteOriginally posted by: jawabeanbuy a lottery ticket. then be ready to explain why it's a thoughtful choice based on modern investment theoryMy guess: Since it's impossible to beat the market, I bet on a black swan event? quantmeh Posts: 5974 Joined: April 6th, 2007, 1:39 pm ### I give you$1000, how do you invest the money? Why?

QuoteOriginally posted by: CrashedMintQuoteOriginally posted by: jawabeanbuy a lottery ticket. then be ready to explain why it's a thoughtful choice based on modern investment theoryMy guess: Since it's impossible to beat the market, I bet on a black swan event?nope. think in terms of well diversified portfolio

trackstar
Posts: 28004
Joined: August 28th, 2008, 1:53 pm