My plan for tomorrow’s Finance 4335 Midterm Exam #1 review session is to engage in Q&A pertaining not only to course content but also to exam-related protocols which I expect students to follow. Regarding course content, I plan to 1) review what we have covered in Finance 4335 to date (based on my teaching note entitled “Finance 4335 Midterm 1 Synopsis”), 2) work solutions for Problem Set 4, and 3) work solutions for the Spring 2020 Finance 4335 Midterm 1 exam.
As you consider these various documents (along with all other documents which are distributed from the course website), let me remind you that anything other than your personal use of these documents is in violation of Section III.C.16 of Baylor’s Honor Code Policy and Procedures and therefore, expressly forbidden. Hypothetical examples of honor code violations include sharing such documents with others who are not currently enrolled in Finance 4335, uploading such documents to so-called course-sharing websites (e.g., Quizlet, CourseHero, etc.), and using course-related documents from any source other than the course website. If you have questions about this policy, I suggest that you reference the Finance 4335 Honor Code, and please discuss questions or concerns you may have with me.
On September 24 and September 29, we’ll focus our attention on the first midterm exam in Finance 4335. Class on Thursday, September 24 will be devoted to a review session for the exam, and the exam will be administered during class on Tuesday, September 29.
Even though I list it as “optional” reading, I highly recommend that y’all read my teaching note due on 9/24 entitled “Finance 4335 course synopsis for Midterm Exam 1”. In order to properly prepare for the first midterm exam in Finance 4335, I also recommend reviewing the various class problems along with problem sets 2 – 4, and midterm 1 from Spring 2020; solutions for class problems and problem sets in FIN 4335 are available at http://risk.garven.com/category/problem-set-solutions. After class tomorrow, I will post the solutions for problem set 4 and for midterm 1 from Spring 2020 so that everyone will the opportunity to check their work on these assignments.
As I promised, here is a copy of the “Broader Risk Definitions, Mean-Variance, and Stochastic Dominance” class problem which we covered yesterday in class, along with solutions:
Student Question: What is the password to access the zoom recordings?
Dr. Garven Answer: Go to Zoom\Cloud Recordings on Canvas. Then click on the recording that you wish to watch. When you do this, Zoom automatically sends the recording password to your “clipboard” (computer memory), and when you are presented with a screen asking for a password, simply place the cursor in the password field and apply your “paste” command, and you’re in!
Tomorrow, we will cover the “Decision Making under Risk and Uncertainty, part 4 lecture note. We will also work on a new class problem that I have created, entitled the “Broader Risk Definitions, Mean-Variance, and Stochastic Dominance Class Problem”. I recommend downloading both of these documents prior to the beginning of tomorrow’s class meeting.
I highly recommend the upcoming 9-part webinar series entitled “Tuesdays with Lloyd’s”, scheduled for 10-11 CT on September 22, September 29, October 6, October 20, October 27, November 3, November 10, December 1, and December 8, 2020. The topics to be covered include:
- September 22 2020 – Insuring the world’s COVID-19 recovery and resilience
- September 29 2020 – Innovating at Lloyd’s: meeting the challenge of complex threats to intangible assets
- October 6 2020 – Evolving risks: leveraging data, technology, and capital in the delivery of asset and brand protection
- October 20 2020 – US Property Market: observations from London on Lloyd’s largest class of business in the US
- October 27 2020 – US Casualty Market: the search for answers and opportunities in an ever-changing landscape
- November 3 2020 – US Directors and Officers Market: exploring the latest developments and market dynamics
- November 10 2020 – Sharing Economy: how Lloyd’s is using new data sources to underwrite new risks
- December 1 2020 – US Errors and Omissions Market: exploring the latest developments and market dynamics
- December 8 2020 – US Construction Market: observations on a year like no other as all eyes look to rebound in 2021 and beyond
In order to register for any (or all) of these 1 hour webinars, go (as I have) to https://communications.lloyds.com/49/1737/landing-pages/rsvp-blank-form.asp.
Lloyd’s of London, generally known simply as Lloyd’s, is an insurance and reinsurance market located in London, United Kingdom. The Lloyd’s market has its roots in marine insurance and was founded by Edward Lloyd at his coffee house on Tower Street in London in 1686.
Amegy Bank will hold a virtual information session tonight from 5 to 6 pm. They will discuss what commercial banking involves and internship/career opportunities with Amegy. Here is a link to the info session:
Join Microsoft Teams Meeting
+1 469-200-0873 United States, Dallas (Toll)
Conference ID: 114 631 482#
Also, linked below is a document shared by my colleague Ernest Fletcher, who teaches a commercial banking course at Baylor. It outlines several opportunities in the banking area that Baylor students often apply for.
9.16.20 Commercial and Corporate Bank Summer Internships (002).docx
How to Prepare
What can you do to prepare for career success right now? Get ready for our upcoming Virtual Career Day – Fall 2020! Whether you are looking for an internship or a full-time position, make sure to follow our list of steps below to stand out and have a successful career fair experience.
- Update your Handshake profile and make sure that it is complete. Upload your résumé and make it public.
- REGISTER for Career Day in Handshake. It will move you to our platform, CareerEco. You must set up a profile in CareerEco BEFORE Career Day.
- Find out which employers are attending and make a list of those you want to meet.
- Research the employers on your list and the internship and job opportunities they have open.
- FIT your résumé to the jobs you’re interested in.
- Prepare an elevator pitch (talking points that an employer needs to know about YOU).
- Dress professionally – this will make a great first impression with recruiters!
- Join the virtual career fair from a quiet spot with a neutral background. Limit the distractions around you.
- Be prepared with great questions for the employers.
- If you’re asked to participate in a video chat, be sure to maintain eye contact and practice active listening.
Click Here to Register for Career Day
You are about to see a LOT of images, information, and emails about Career Day! Why do we promote this event so heavily? Because, this is the best opportunity for you to meet numerous employers, check out an array of positions, and research companies all in one place. These companies are attending the fair to hire Baylor students for internship and full-time jobs. There are numerous benefits to the event being virtual this year:
- It will be easier than ever to talk to recruiters.
- You can log-in from anywhere.
- There will not be any crowds or loud noise to try to talk over.
- You can talk to more employers in less amount of time.
- You can schedule a virtual career coaching appointment to help you prepare to shine.
We stand by our mission to ensure each student has the opportunity and support to achieve their career potential – and one of the BEST ways to do that, is by encouraging you to attend Career Day.
REGISTER IN HANDSHAKE TODAY
Virtual Career Events
Check out our upcoming virtual events on Handshake. You can find details and register through Handshake as well. We are adding new events weekly. Talk with your CSP if you want more information on how an event might be able to help you with your career goals.
- 9/8/2020 Careers in Technology at KPMG, 1:00 – 1:45 pm.
- 9/8/2020 Bringing It ALL Together with AT&T, 5:00 – 6:00 pm.
- 9/09/20 LinkedIn Workshop with Ben Cork, 5:00 – 6:00pm.
- 9/9/2020 Certified Financial Services: Beginning Your Career as a Financial Advisor, 5:00 – 6:00 pm.
- 9/09/20 Credera Info Session: Management Consulting, What is it?, 7:00 – 8:00pm.
- 9/10/20 GM Financial Coffee Chats, 3:30 – 4:00pm.
- 9/10/20 Walmart AFDP Corporate Information Session, 5:00 – 6:30pm.
- 9/11/20 ERCOT: EDP Reach WebEx College Day, 9:00 – 12:30pm.
- 9/11/20 Community Impact at KPMG, 2:00 – 2:45pm.
- 9/11/20 IHeartMedia Virtual Coffee Chat – Open forum Q&A, 4:00 – 5:00pm.
- 9/14/20 KPMG: Finding Success Through Authenticity, 1:00 – 1:45pm.
- 9/14/20 Penguin Random House Information Session, 3:00 – 4:30pm.
- 9/15/20 TTI: Career Advice – Locking Down your Dream Job, 10:00 – 11:00am.
- 9/15/20 Reynolds & Reynolds Information Session, 3:00 – 5:00pm.
- 9/15/20 Community Impact Newspaper Information Session, 3:00 – 4:00pm.
- 9/15/20 Credera Tech and D&A Information session, 5:00 – 6:00pm.
- 9/15/20 DELL NIGHT, 5:00 – 8:00pm.
- 9/15/20 Paycom Information Session, 6:00 – 7:00pm.
An acceptable alternative way (either in lieu of or in addition to) for solving problem 2 in problem set #4 would be to build a spreadsheet model in which you use Solver to determine the optimal exposure to risk for both investors. If you decide to build your own spreadsheet model, upload it in addition to the problem set itself in order to get credit for working problem 2 this way.
An example of how to use Solver for figuring out an optimal decision is provided in my “Optimal insurance demand” spreadsheet. There, alpha corresponds to the percent of the risk to be insured and beta corresponds to the percentage markup from the actuarially fair price; when beta is zero (as currently coded), then insurance is actuarially fair and Solver returns an alpha value of 1 (i.e., full coverage; as currently coded, this spreadsheet corroborates the Bernoulli principle for a consumer with a square root utility function.