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Unformatted text preview: FIN 397.1: Spring 2007 Quiz # 2: Payoff Diagrams and Basic Statistics February 20, 2007 NAME: SECTION: Time allowed: 15 minutes. Maximum possible score: 20. NOTE: If I cannot understand your calculations, I will not be able to give you full credit even if your final answer is correct. You cannot say these calculations are obvious. If a problem is missing some key information that you think is necessary to solve the problem, please ask me to clarify the question or state your confusions clearly. Alternatively, please make appropriate assumptions, state them clearly and proceed. No credit will be awarded if you fail to state your confusions or assumptions explicitly even if the question is wrong . Partial credits may be awarded if you show your calculations or provide arguments to support your answers. 1 Mean, Variance, Covariance, and Correlation Suppose the economy can be in one of the following four states: (i) Boom or good state, (ii) Neutral state, (iii) Recession or bad state, and (iv) Terrible state. Each of the first(ii) Neutral state, (iii) Recession or bad state, and (iv) Terrible state....
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This note was uploaded on 03/30/2010 for the course CH 369 taught by Professor Kbrowning during the Spring '07 term at University of Texas at Austin.
- Spring '07