Questions / Quant research, Take-home data cases
A survivor-only fund file
You received annual returns for funds still alive today. Two more funds closed during the year, returning −12% and −20% before closing. What is the average return across all six funds, in percent?
fund,return_pct
F1,8
F2,6
F3,10
F4,4Answer it in the app It's free. You get hints, a second try if you miss, and a follow-up question.
Show the answer and worked solution
Answer: -0.6667%
- Live sum 28, dead sum −32.
- −4/6 = −0.667%.
Interview shortcut. Put the dead funds back: (28 − 32)/6.
Takeaway. A survivor-only file overstates performance.
In the app this has a follow-up where one thing about the setup changes. Try the follow-up.