Quriosity february 2017 by Quantinuum@simsr

Topics

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A day in the life of an investment banker by Vaibhav M 4 Quantitative techniques for decision making by Amod 6 Kulkarni

News Digest by Maheshwaran

Quant Guru by Rupal Doshi

Quriosity Updates by Arunava Dey

Qombat â&#x20AC;&#x201C; Event Update by P Divya

Quant Fun

Quant Connect

Editor’s Note February 2017 Hearty greetings to all! With great excitement, team Quantinuum presents “Quriosity” - the quant magazine of SIMSR. In this issue we have the main story by Vaibhav M on “A Day in the Life of an Investment Banker” which tells us about what an investment banker do most days at work does. The sub-article is by Amod Kulkarni on “Quantitative Techniques on Decision Making” talking about the different ways of making decisions and the different models used to arrive at such decisions. In our Quant Guru section, Rupal Doshi writes about Homi Bhabha, an Indian mathematician and physicist with major contributions to the field of nuclear physics. The Events update section contains the details about Qombat, conducted during SIMSR's flagship event, Melange. The News Updates about analytics is covered by Maheshwaran Kumar. Quriosity updates by Arunava Dey covers how NASA has come up with new weather warning techniques to protect astronauts and how NASA is helping astronauts grow food in space.

So look around and enjoy reading about the quantitative aspect of world.

Happy Learning, Editorial Team!

Cover Story February 2017 A Day in the Life of an Investment Banker Investment banking is one of Wall Street's most illustrious and coveted jobs. It is also one of the hardest, at least in terms of hours on the job and reported stress. It is no surprise the average day in the life of an investment banker is long and stressful. However, those who manage to survive the adjustment period often go on to have long and financially rewarding careers. According to Andrew Gutmann, former investment banker and author of "How to Be an Investment Banker: Recruiting, Interviewing, and Landing the Job," the typical investment banking associate or analyst "can routinely expect to work 90-100 hours per week or even more. A typical work day during the week might be 10:00 am until 2:00 am."

Role of an Investment Banker The general public is full of misconceptions about investment banks, which simply help companies or governments raise capital through debt and equity financing. The capital markets are a fast-paced, high-stakes and highly regulated environment, so it really pays to have professional bankers navigate the process. For example, investment banks helped Facebook, Inc. go public in 2012 and assisted Comcast Corporation when it bought NBCUniversal Media from General Electric in 2013. It is true that there are trading and sales divisions at places such as Morgan Stanley and Goldman Sachs, but the traditional role of an investment banker involves meeting with clients, preparing offers, running financial projections and working on pitchbooks, or sales books created by the firm to help generate new clients. What separates investment bankers from accountants and financial analysts is the pressing need for excellent social skills. Plenty of business students can perform the technical functions of an investment banking associate, but few have the stamina and social graces to grease the wheels with senior staff and clients. Associates, especially in the first year, are very replaceable cogs in a machine; having the right personality and attitude goes a long way. Once a new associate moves past the chaos and jitters of the job, which can take months according to some, he settles into a functional routine. The mornings are the most consistent and are often full of administrative emails and office meetings. In fact, "full of emails" might not do the average investment banker's morning justice. Responding to lots and lots of messages is the most consistent part of an investment banker's day. There are stories of analysts at JPMorgan waking up in a panic during the night to check their phones because they run the risk of being fired if they do not respond to every message within 15 minutes. These messages may come from clients but are most likely from co-workers and senior bankers who need every status report, presentation and calculation double- and triple-checked.

Fortunately, most work days start rather late for bankers. This is partly because the New York capital markets are not open at 7 a.m., but it is also because most bankers were at the office until midnight or later. An associate has time to shower, eat a breakfast and even work out before heading to the office. Since the vast majority of investments banking jobs are located in crowded metropolitan cities, bankers need to leave sufficient time for transportation. Morning work is often much slower and more methodical than evening work. From about 9:30 a.m. until lunch, associates and analysts work on company analyses and make adjustments requested from senior staff, who normally spent the prior evening/morning reading over the previous day's work. On slow days, the junior bankers may have time to catch up on the news or sports, but there is not much opportunity for social media since most investment banks put up firewalls for distracting websites. Source: http://www.investopedia.com/articles/professionals/111715/day-life-investment-banker.asp Vaibhav M PGDM Core (2016-18)

Quantitative Techniques for Decision Making Decision making is of paramount importance for the survival and smooth functioning of business. Management executives have to take decisions considering the limited amount of information they have. Decision making problems are divided into two types - deterministic and probabilistic. Deterministic model of problem solving depends on the relationship between uncontrollable factors and continuing process of optimizing system performance. A model is developed in under assumption related to existing business condition. If the variables under assumption do not truly reflect the current business conditions, the model developed also will not reflect the reality. Mathematical optimization utilizes mathematical equation to determine the business decision. The business decision derive is in a numerical form. A business model for decision making is constructed by analyst based on inputs of a decision maker. A business model is developed over a period of time using a progressive approach method. The various quantitative techniques deployed for decision making process are as follows:1. Optimization Modeling Process:Optimization model is developed in three steps. First step is describing the problem, second step is elaborating the solution and third step is controlling the problem. The optimized problem of the 1st step can be classified into linear and non-linear depending upon on nature of variables. Optimization problem has three following aspects:ď&#x192;&#x2DC; An objective function to maximize or minimize ď&#x192;&#x2DC; A set of variables which affect the value of the objective function ď&#x192;&#x2DC; A set of uncontrollable factors referred as parameters The solution of optimized problem satisfying all parameters and constraints is referred as feasible solution. The objective of an optimization process is to value of variables, which minimize or maximize objective giving out an optimal solution.

2. Linear Programming:Linear programming is a mathematical procedure of determining linear allocation of business variables. For constructing the linear program following factors are essential: The objective function needs to be linear  The objective must be to either maximize or minimize a linear function  The constraints in the program should also be linear In formulating a linear program certain variables are integer in nature, such as function with integer variable 3. Decision Tree:In a certain decision-making process, probability plays an important role. On the decision model based upon probability is decision trees. 4. Scenario Modeling:Business environment is always unpredictable and can throw up unusual situation more than often. Thus, organizations find themselves in the middle of dynamic environment. Here model and methods like sensitivity analysis, stability analysis, what-if analysis, scenario modeling, etc. are utilized. Therefore, model under used uncertainties are as follows:a) Scenario Analysis: this model assumes a different scenario a business may find itself with certain value of parameters. b) Worst Case Analysis: this model assumes an extreme case scenario in computing different variables. c) Monte-Carlo Model: this model assumes uncertainty through statistical distribution. 5. Theory of Constraints:Theory of constraints is a management concept which helps an organization deal with situations that hampers its growth and then move towards a higher level of performance. It encourages an organization to deal one constraint at a time and comprises of the following steps:    other

Identifying constraints of the existing system Identifying ways to extract potential out of system constraints Exploiting constraints to its fullest potential should be made priority As the company overcomes the first constraint, it should look forward to working upon constraints.

Source:http://www.managementstudyguide.com/quantitative-techniques-for-decision-making.htm -Amod Kulkarni MMS (2016-18)

News Digest February 2017 Capgemini is looking to partner with startups in India from fields of data analytics, IoT French multinational Capgemini is looking to partner with startups in India from the fields of data analytics, artificial intelligence and Internet of Things (IoT) and build a bridge for these ventures to enter international markets, a top executive said. As part of Capgemini's Applied Innovation Exchange (AIE) programme, the company leverages startups across the globe that demonstrate new thinking in retail, banking/insurance, telecommunications, among others. After collaborating with startups in the US and Europe, the company is now scouting for some promising startups in Delhi, Mumbai and Bengaluru. "I think startups rely too much on venture capitalists to bring them to markets," said John Brahim, CEO-insights and data at Capgemini. Now politicians use data analytics to improve decision-making 800 volunteers of Bharat Gyan Vigyan Samiti, a nonprofit voluntary outfit, are currently going from door to door in two blocks of Balasore in Odisha. The village level data they're collecting in lawmaker RK Jena's constituency is being entered into an app on tablets, which is then collated centrally. Information is being gathered by the volunteers on a wide range of subjects â&#x20AC;&#x201D;schools, aanganwadi centres, health facilities, Panchayati Raj institutions, roads, transportation, electrification and agriculture. The idea is to distil the flood of data into meaningful information and help bridge the gap between real needs and action. "Just three years ago I had colleagues scoffing at the use of data and technology," Panda said. "Today, there has been a dramatic shift and use of big data is becoming crucial in identifying trends and policies.". "Data is playing a definite role in shaping the future of the country," said Jena. He's depending on the new tools to monitor the state of agriculture, livelihoods, gender empowerment and economic benefits of government schemes on the people of his constituency. Big data helped Donald Trump even after he scorned it Donald Trump derided the use of data and technology tools for his presidential campaign -but those techniques might well have propelled him to victory. Trump's stealth digital campaign, thrown together hastily in the final months of the campaign, allowed the Republican billionaire to fine-tune his message and reach voters in crucial Rust Belt states that gave him an Electoral College majority. During the primaries, Trump dismissed as "overrated" the kinds of data analytics and "micro-targeting" successfully used by President Barack Obama. But after winning the nomination, he quietly developed a digital strategy led by a political neophyte, his son-in-law Jared Kushner, and a data company whose parent firm worked on the Brexit campaign.

In the final stages of the race, Trump relied on insights generated by Cambridge Analytica, the US unit of British behavioral marketing firm SCL that allowed his campaign to reach voters in the key states of Pennsylvania, Michigan and Wisconsin that delivered his majority over Democrat Hillary Clinton. Budget 2016: Data analytics helps government collect Rs 10,000 crore from non-filers The government said it collected more than Rs 10,000 crore by leveraging data analytics in the non-filers monitoring system. The project was undertaken by the Income Tax Department to prioritize action on people who fail to file income tax returns but have potential tax liabilities. Based on specific information based on information from customs, tax-deducted at source and other places, the system identified 44.07 lakh non-filers of tax returns with potential tax liabilities in its 2015 cycle, documents posted on the government budget website said. The government has also launched a service tax data matching pilot. The data is being used by the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC) to identify non-filers and cases where values submitted do not match. Source: www.anayticsindiamag.com Maheshwaran Kumar PGDM Core (2016-18)

QuantGuru February 2017 HOMI BHABHA Homi Jehangir Bhabha (30 October 1909 â&#x20AC;&#x201C; 24 January 1966) was an Indian nuclear physicist, founding director, and professor of physics at the Tata Institute of Fundamental Research. Colloquially known as "father of the Indian nuclear programme", Bhabha was the founding director of two well-known research institutions, namely the Tata Institute of Fundamental Research (TIFR) and the Trombay Atomic Energy Establishment (now named after him); both sites were the cornerstone of Indian development of nuclear weapons which Bhabha also supervised as its director. In January 1933, Bhabha received his doctorate in nuclear physics after publishing his first scientific paper, "The Absorption of Cosmic radiation". In the publication, Bhabha offered an explanation of the absorption features and electron shower production in cosmic rays. The paper helped him win the Isaac Newton Studentship in 1934, which he held for the next three years. The following year, he completed his doctoral studies in theoretical physics under Ralph H. Fowler. During his studentship, he split his time working at Cambridge and with Niels Bohr in Copenhagen. In 1935, Bhabha published a paper in the Proceedings of the Royal Society, Series A, in which he performed the first calculation to determine the cross section of electron-positron scattering. Electron-positron scattering was later named Bhabha scattering, in honor of his contributions in the field.

In 1936, the two published a paper, "The Passage of Fast Electrons and the Theory of Cosmic Showers" in the Proceedings of the Royal Society, Series A, in which they used their theory to describe how primary cosmic rays from outer space interact with the upper atmosphere to produce particles observed at the ground level. Bhabha and Heitler then made numerical estimates of the number of electrons in the cascade process at different altitudes for different electron initiation energies. The calculations agreed with the experimental observations of cosmic ray showers made by Bruno Rossi and Pierre Victor Auger a few years before. Bhabha later concluded that observations of the properties of such particles would lead to the straightforward experimental verification of Albert Einstein's theory of relativity. In 1937, Bhabha was awarded the Senior Studentship of the 1851 exhibition, which helped him continue his work at Cambridge until the outbreak of World War II in 1939. Starting his nuclear physics career in Great Britain, Bhabha had returned to India for his annual vacation before the start of World War II in September 1939. War prompted him to remain in India and accepted a

post of reader in physics at the Indian Institute of Science in Bengaluru, headed by Nobel laureate C.V. Raman. During this time, Bhabha played a key role in convincing the Congress Party's senior leaders, most notably Jawaharlal Nehru who later served as India's first Prime Minister, to start the ambitious nuclear programme. As part of this vision, Bhabha established the Cosmic Ray Research Unit at the Institute, began to work on the theory of point particles movement, while independently conducting research on nuclear weapons in 1944. In 1945, he established the Tata Institute of Fundamental Research in Bombay, and the Atomic Energy Commission in 1948, serving as its first chairman. In 1948, Nehru led the appointment of Bhabha as the director of the nuclear program and tasked Bhabha to develop the nuclear weapons soon after. In the 1950s, Bhabha represented India in IAEA conferences, and served as President of the United Nations Conference on the Peaceful Uses of Atomic Energy in Geneva, Switzerland in 1955. During this time, he intensified his lobbying for the development of nuclear weapons. Soon after the Sino-Indo war, Bhabha aggressively and publicly began to call for the nuclear weapons. Bhabha gained international prominence after deriving a correct expression for the probability of scattering positrons by electrons, a process now known as Bhabha scattering. His major contribution included his work on Compton scattering, R-process, and furthermore the advancement of nuclear physics. He was awarded Padma Bhushan by Government of India in 1954.He later served as the member of the Indian Cabinet's Scientific Advisory Committee and provided the pivotal role to Vikram Sarabhai to set up the Indian National Committee for Space Research. In January 1966, Bhabha died in a plane crash near Mont Blanc, while heading to Vienna, Austria to attend a meeting of the International Atomic Energy Agency's Scientific Advisory Committee. Source: https://www.famousscientists.org/homi-jehangir-bhabha/ Rupal Doshi PGDM FS (2016-18)

Quriosity Updates February 2017

NASA comes up with new space weather warning technique to protect astronauts

Warning signs of a type of space weather event can be detected much earlier than with current forecasting techniques - providing critical extra time that could help protect astronauts, NASA scientists say. The Sun sometimes erupts with bursts of light, solar material, or ultra-fast energized particles - collectively, these events contribute to space weather. Earth's magnetic field and atmosphere protect us on the ground from most of the harmful effects of space weather, but astronauts in low-Earth orbit - or even, one day, in interplanetary space - are more exposed to space weather, including bursts of fast-moving particles called solar energetic particles, or SEPs. NASA will help astronauts grow food in space

NASA is sending plant growth system to International Space Station that will help astronauts grow their own food in space during the missions. The new plant system will this month join Veggie NASA's first fresh food growth system already active on ISS. The Advanced Plant Habitat will be used to conduct plant bioscience research on the space station, NASA said. Arabidopsis seeds, small flowering plants related to cabbage and mustard, have been growing in the prototype habitat, and will be the first plant experiment, called PH-01, grown in the chamber aboard the space station. The new plant habitat is a fully enclosed, closed-loop system with an environmentally controlled growth chamber, said Bryan Onate, project manager at NASA's Kennedy Space Centre. Source: www.nasa.gov Arunava Dey PGDM FS (2016-18)

Qombat – Event Update February 2017 Quantinuum conducted one of its flagship event – Qombat during February, 2017 at the time of business festival of K J SOMAIYA “MELANGE”. This is the National level quiz competition based on analytics and quants skills. The quiz was conducted in two stages: online & offline. 45 teams from B schools like IIM Indore, IIT Bombay, SIBM, NITIE and various other colleges all over India have registered this year. The online round was conducted on 8 th February 2017. The test consisted of 20 questions, the duration for which was 30 minutes. 6 teams were shortlisted for the finals which was conducted on 17th of February. The competition was designed and organized by the members of Quantinuum Committee under the guidance of Prof. Nilakantan Narasinganallur, faculty mentor of the committee.

On 17th February the event began at 10 A.M in morning with the offline rounds. The offline round consisted of 3 rounds: Life Main Excel Karo, Ninja Hatori ka Bhai Hitori and Cross Numbers. The event lasted for 2 hours and after a tough fight between the six team, the winners were decided based on the points accumulated by the teams in all 3 rounds. Following were the winners:

Winners: Team Opstimistics from K J Somaiya Runners up: Team Aryabhatta from K J Somaiya Winners were awarded with the cash prize of Rs. 6,000 and the runners up were awarded with the cash prize of Rs. 2000. Quantinuum members worked hard and coordinated well and the event was a success and received a good response and feedback.

P Divya PGDM FS (2016-18)

QUANTS FUN February 2017 SU-DOKU

Quant Connect February 2017 Quantinuum, the Quant forum of KJ Somaiya Institute of Management Studies and Research aims to empower students and professionals alike to organize and understand numbers and, in turn, to make good and rational decisions as future managers. The newsletter published monthly consists of a gamut of articles for readers ranging from beginners to advanced learners so as to further enrich the young minds understand the contributions made to the field of mathematics along with a couple of brain- racking sections of Sudoku to tickle the gray cells. For any further queries and feedback, please contact the following address: KJ Somaiya Institute of Management Studies and Research, Vidya Nagar, VidyaVihar, Ghatkopar East, Mumbai -400077 Mentor Prof. N.S.Nilakantan (+919820680741) â&#x20AC;&#x201C; Email â&#x20AC;&#x201C; nilakantan@somaiya.edu

Team Leaders:

Bharat Bhushnam (+91 70457 81029) Vatsal Mehta (+91 98219 87294) Bharat Gupta (+91 98116 13264)

Editorial Team:

Aditi Mehta (+91 97570 99599) Arunava (+917720093053) Anish Sagar (+919981944441) Maheshwar Kumar (+919566173411) Milcah George (+917406186087) Rupal Doshi (+919831427640)

Designing Team:

Sudeep Kumar Sahoo (+919833056863) Shreyas Kulkarni (+918600106378) Ashish Mohadik (+919819741018)