Expected Empty Bins in Portfolio Allocation - Quant Trader Interview Question
Difficulty: Medium
Category: Probability & Statistics
Practice quant interview questions from top firms including Jane Street, Citadel, Two Sigma, DE Shaw, and other leading quantitative finance companies.
Topics: probability, expected-value, portfolio-allocation, approximation
Problem Description
You are building a portfolio by randomly allocating capital to $n$ different assets. Each asset has an equal chance of receiving a portion of your capital. Assume you allocate $n$ equal-sized blocks of capital to these assets. What is the approximate expected number of assets that will receive no capital allocation?
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