I found a typo and realized that I had left a couple of equations out of the formula sheet, so I just uploaded what is presumably the final version of the formula sheet for Midterm Exam 1. This formula sheet consists of the following 6 sections:
- Expected value and variance
- Expected utility
- Certainty equivalent of wealth and risk premium
- Stochastic dominance rules
- Expected return and standard deviation: 2-asset portfolio
- Standard normal distribution and z statistic
While I have your attention, here’s some information about the exam itself:
- This exam consists of two sections. Section 1 consists of eight multiple choice questions worth 4 points each, whereas Section 2 consists of three problems worth 32 points each.
- Students are required to either complete Section 1 multiple-choice questions and two out of three Section 2 problems, or to ignore Section 1 and complete all three Section 2 problems. For students who complete all of Sections 1 and 2, I will count the three highest scoring questions and/or problems toward the exam grade.
- The maximum number of points possible on this exam’s questions and problems totals 96, and I will add an additional 4 points on your exam if you legibly write your name on the cover page in the space provided. Thus, the maximum number of points possible on this exam is 100 points.
- You may have the entire class period in order to complete this examination.