Midterm 2 will be given in class on Thursday, April 12. ?You will be required to complete 3 out of 4 problems. At your option, you may answer all 4 problems. Your exam grade will be the sum of the 3 best scores (the maximum possible score for each problem is 32 points) plus 4 points for including your name on the exam booklet, for a maximum possible of 100 points for the exam.
The questions involve the topics which we have covered since the first midterm.? There is a problem on the demand for insurance, as well as a problem involving the evaluation of a gamble using the stochastic dominance criterion.? A third problem blends together the portfolio theory and capital market theory concepts.? Finally, the fourth problem involves pricing European options using the binomial framework which we have been studying lately.? We have covered all of these topics in class and in assigned problem sets, and they are all well represented in the various sample exam problems that are available from the course website.
See y?all tomorrow.? Good luck!
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