Information I

1
Information I

• July 28, 2004 530 PM 800 PM
• Scantron, Financial Calculator
• Letter Size, One-Sided Information Sheet

2
Information II

• 50 Multiple Choice Questions
• 1st and 2nd Mid-term Exam 20 Questions
• From 1st and 2nd Mid-term Exam Concept
  questions Shuffle answer choice Calculation
  questions-Similar
• 30 Questions after 1st and 2nd Mid-term Exam
• Ch10 (Except for Duration part 10.1)
• Ch5, Ch6(No Single Index Model), Ch7(up to CAPM,
  no arbitrage pricing theory)
• In-class practice problems and class slides

3
Ch5

• Risk and Return
• HPR, Arithmetic Average Return, Geometric Average
  Return(Time Weighted Return), Internal Rate of
  Return( Dollar Weighted Return)
• Variance/Standard Deviation
• Scenario Analysis
• Capital Allocation-between risky portfolio and
  riskless assets
• Complete portfolio
• Expected portfolio return/ risk
• Capital Allocation Line(CAL)/Slope of CAL-Reward
  to variability ratio/ Kinked CAL
• Risk Aversion

4
Ch6

• Systematic Risk/Unsystematic Risk
• Efficient Frontier/Portfolio
• Tobins Separation Theorem

5
Ch7

• CML-Capital Market Line
• SML-Security Market Line
• Characteristic Line