are171a-final-exam-info

# are171a-final-exam-info - Final Examination Information...

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Final Examination Information March 8, 2010 ARE 171A A. Havenner Ana and Haeng Ku will hold an optional review session Monday, March 15, 2010, from 2:10 to 3:00 in 234 Wellman. I will hold office hours Tuesday March 16 from 2:30 to 3:30 for last minute questions. The final examination is Wednesday March 17, 2010 from 1:00 to 3:00 in the usual classroom. Do not bring scratch paper or other materials to the examination. You will answer on the examination itself, and you can use the backs for scratch paper. Everything else must be stowed away. The examination will be closed book. A calculator will be required. There may be some algebraic/derivation problems. The following sections of chapters 4, 5, 7, 9, 10, 12, 13, and 22 everything in my notes on the class web page will be covered, with three exceptions: 1) pages 87-91 on fair games and martingales (note that the random walk on page 92 remains testable), 2) pages 95-108 on Real Options, and 3) pages 135-140 at the end of the notes. Chapters 10 and 22 and related materials are a very important segment of the course. The final will emphasize the material since the midterm, but there will be someofthe more complicated problems from the earlier material. In general, formulas will be provided (do not memorize the Black-Scholes equations!), although you must know which to use, and some equations are part of the logic of solving the problem (e.g., the replicating portfolio equations in pricing binomial options). Post-Midterm Text Topics: Chapter 10. Return and Risk: The Capital Asset Pricing Model (CAPM) All of chapter 10, with extensive supplementary material provided in the class notes. Be able to derive the CAPM and explain the logic of critical steps. Skip Chapter 11. Chapter 12. Risk. Return, and Capital Budgeting Chapter 12, sections 12.1 and 12.2 only Chapter 13. Corporate Financing Decisions and Efficient Capital Markets All of Chapter 13 Chapter 22. Options and Corporate Finance Chapter 22 up to and including the material under the heading I "The Firm Expressed in Terms of Call Options" (in section 22.9) except section 22.5 Option Quotes. You do not need to know any of the material in the book that follows that delineated above. There is extensive supplementary material in the notes for which you are responsible, however. You need not read section 22.11 (22.12 in editions 6 and 7), but it is similar to material in the notes and

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## This note was uploaded on 03/18/2010 for the course ARE 171A taught by Professor Whitney during the Winter '08 term at UC Davis.

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are171a-final-exam-info - Final Examination Information...

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