Formulas_Final

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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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 σσ = + Y X Y X Y X σρ 2 2 2 2 + + = + Y X Y X Y X 2 2 2 2 + = For “weighted average” where a+b = 1 Y X Y X bY aX b a b a ρσ 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: 2 2 2 2 2 2 2 ) / 1 ( 2 ) / 1 ( 2 ) / 1 ( ) / 1 (
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.
Ask a homework question - tutors are online