Students will likely find the study guide helpful in preparing for the second midterm exam in Finance 4335 (scheduled for Thursday, October 26, in class). The exam covers:
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- Topics 8-10 as listed on the course lecture notes page (insurance economics, asymmetric information, portfolio theory, and capital market theory),
- Readings from October 3 – 17 as listed on the course readings page, and
- Problem sets 5-7 as listed on the course problem sets page.
During the past month, we have also worked on class problems related to the abovementioned topics. The class problems and their solutions, along with solutions for problem sets 5-7, are available on the Problem Set Solutions page.
A formula sheet will be included on the last page of the exam booklet; this same formula sheet can be downloaded from http://fin4335.garven.com/fall2023/formulas_part2.pdf. On this exam, you must only complete three of four problems. If you complete all four problems on the exam, only the three highest-scoring problems will count toward your Midterm Exam 2 grade. Each problem will be worth 32 points, and you will receive 4 points for including your name on the exam booklet. Thus, the maximum number of points possible on Midterm Exam 1 will be 100.
Whenever you take an exam in Finance 4335, it is important to not only show your work but also provide complete answers for each question; i.e., besides producing appropriate numerical results, also clearly explain your results using plain English.