Formulas_Final

# Formulas_Final - EC 41 UCLA Fall 2008 Formulas that will be...

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EC 41 UCLA Fall 2008 Formulas that will be given on The final: No “Cheat Sheet” or any other written material is allowed. Bring your photo id and a calculator you know now to use. I will not try to answer questions about how to use your calculator. Table A and Table D – or as much of these tables as you need to answer the questions. 2 ) ( 1 1 x x n s i x = ( )( ) ( ) ( ) [ ] ( ) ( ) [ ] = 2 2 2 2 Y Y n X X n Y X XY n r = = n i y i x i s y y s x x n 1 1 1 ( )( ) ( ) = 2 2 1 ) ( X X n Y X XY n b = x y S S r X b Y b o = The following formulas below may be of use. 2 2 2 X bX a b σ σ = + Y X Y X Y X σ ρσ σ σ σ 2 2 2 2 + + = + Y X Y X Y X σ ρσ σ σ σ 2 2 2 2 + = For “weighted average” where a+b = 1 Y X Y X bY aX b a b a σ σ ρ σ σ σ 2 2 2 2 2 2 + + = + If X 1 & X 2 are uncorrelated (so ρ = 0), then variance of a portfolio of n investments denoted X 1 , X 2 , X 3 , …X n ; each with a 1/n share, is:
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