lecture recording on 18 February 2025 at 13.33.56 PM

Exam Details

• Date and Time: Exam on Thursday, in the specific classroom; students should arrive by 12:25 PM.

• Duration: 75 minutes to complete the exam, starting at 12:25 PM, and the exam will time out at 1:45 PM.

• Preparation: Students should be ready to start on time; it is advised to finish the first pass through the exam in under 30 minutes.

Exam Conditions

• Closed Notes and Books: No outside materials, internet access, or personal notes permitted. Only the exam itself and the provided formula sheet may be used.

• Approved Calculators Only: Students may use specific models (e.g., HP 12c or 12c Platinum). No graphing or scientific calculators are allowed. If a calculator fails during the exam, replacements will be available.

• Laptop Requirements: Students should bring a working laptop and charger. Ensure it is used for homework prior to the exam to avoid technical issues during the exam.

Attendance and Submission

• Attendance Sheet: After submission, students must complete an attendance sheet indicating their name, ID, signature, and current time. Failure to complete this will result in a zero on the exam.

• Single Submission: Students can submit their exams only once, and it cannot be reopened afterward.

Privacy and Security

• Exam Monitoring: The instructor will monitor laptops and ensure compliance with exam rules. Any suspicious activity may be documented.

• Desktop Privacy: Students should clear their desktops of private documents to prevent privacy violations during monitoring.

Review and Preparation

• Practice Problems: Students are encouraged to use available practice problems and conceptual questions to prepare adequately. Mastery of these will aid in achieving a good exam score.

• Content Exclusions: Specific formulas related to the two-asset case minimum variance portfolio are excluded from the exam. Focus on understanding content covered in lectures and quizzes for exam success.

Content Coverage

• Material Review: Students are responsible for materials from specified textbook chapters relating to key concepts but not detailed academic knowledge or specific regulations unless explicitly instructed (e.g., Regulation T).

  • Topics in Chapters 1-2 include understanding risk types, financial instruments, and the difference between American and European options, among others.

Exam Format and Types of Questions

• Common Questions: Exam questions may revolve around risk premiums, evaluating investments, understanding portfolios, and the concept of systematic vs. total risk, especially within the context of diversification.

• Graphical Representation: Students are encouraged to visually represent portfolio risk versus return scenarios and understand the relationships between different types of assets in their portfolios to succeed in questions.

Quiz and Practice Exam

• Quizzes: There is a structure of quizzes leading up to the exam designed to help reinforce key concepts and test understanding. Participation in quizzes can aid performance on the main exam.

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