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)(11xxnsix−−=( )( )()∑∑∑∑∑−⋅−−=2222YYnXXnYXXYnr⎥⎥⎦⎤⎢⎢⎣⎡⎟⎟⎠⎞⎜⎜⎝⎛−⎟⎟⎠⎞⎜⎜⎝⎛−−=∑=niyixisyysxxn111( )( )∑−−=221)(XXnYXXYnb= ⎟⎟⎠⎞⎜⎜⎝⎛xySSrXbYbo−=The following formulas below may be of use. 222XbXabσσ=+YXYXYXσρ2222++=+YXYXYX2222−+=−For “weighted average”where a+b = 1 YXYXbYaXbabaρσσ222222++=+If X1& X2are uncorrelated (so ρ= 0), then variance of a portfolio of n investments denoted X1, X2, X3, …Xn; each with a 1/n share, is: 2222222)/1(2)/1(2)/1()/1(
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This note was uploaded on 03/10/2009 for the course ECON 1801232000 taught by Professor Brown during the Spring '09 term at UCLA.