{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

EC3333 MidTermPaper2011Fall

# EC3333 MidTermPaper2011Fall - EC3333 NATIONAL UNIVERSITY OF...

This preview shows pages 1–3. Sign up to view the full content.

EC3333 NATIONAL UNIVERSITY OF SINGAPORE EC3333 FINANCIAL ECONOMICS I: MID-TERM (SEMESTER I : AY2011-2012) Time Allowed: 1.5 Hours INSTRUCTIONS TO CANDIDATES 1. This examination paper contains 3 questions and comprises 6 printed pages including this front page. The last page provides a formula which you may find useful. 2. Answer all questions. 3. Total marks are 30 . 4. Use question paper to answer. Write down your Matriculation Number, Name and Tutorial Group Number (e.g. W1, W2 etc.) on your question paper. 5. This is a CLOSED BOOK examination.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
EC3333 2 1. (16 marks) There are 3 assets for an investor to form his/her portfolio. A T-bill has a rate of return of 1%; Risky asset A’s rate of return has an expectation of 3% and a standard deviation of 1%; Risky asset B’s rate of return has an expectation of 5% and a standard deviation of 2%. The rates of return of assets A and B are independent. (a) Please derive the mathematical expression for the efficient frontier. (3 marks) (b)
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern