The next question was a data analysis problem:
A company has 5 employees with salaries: $50,000, $60,000, $70,000, $80,000, and $90,000. What is the median salary?
As Emily continued practicing, she encountered a probability question: gre math prep questions
Emily used the combination formula: C(n, k) = n! / (k!(n-k)!). She plugged in the values: C(6, 3) = 6! / (3!(6-3)!) = 20.
Emily arranged the salaries in order and found the middle value: $70,000. The next question was a data analysis problem:
A deck of 52 cards has 4 suits (hearts, diamonds, clubs, and spades), each with 13 cards. If a card is randomly drawn, what is the probability that it is a heart or a diamond?
A certain stock has a beta of 1.2 and an expected return of 10%. If the risk-free rate is 4%, what is the expected return on the market? Emily arranged the salaries in order and found
A function f(x) = 2x^2 + 3x - 4 is defined for all real numbers. If f(x) = 5, what are the values of x?
A committee of 3 people is to be formed from a group of 6 people. How many different committees are possible?
With these questions and many more, Emily felt well-prepared for the GRE math section. She was confident that she could tackle any problem that came her way. On test day, she walked into the exam room feeling calm and focused. When the results came back, she had scored highly in the math section, and she knew that she was one step closer to getting into her dream business school.
Emily recalled the Capital Asset Pricing Model (CAPM) formula: E(R) = Rf + β(E(Rm) - Rf). She plugged in the values and solved for E(Rm): 10% = 4% + 1.2(E(Rm) - 4%). After some algebra, she got E(Rm) = 8.33%.