Final Examination Information
March 14. 2011
ARE I71A
A. Havenner
Anoptional review session will beheld the afternoonofWednesday, March 16, 2011, from 5:006:30
in Haring 1204. In addition, Ana will hold an office hour Friday March 18,2011 from 12:001:00
in the usual TA office hour room, and I will be available that Friday from 3:00 until 4:00 in my
office (SSH 3107) for last minute questions.
The final examination is Saturday March 19, 2010 from 8:00 to 10:00 AM in the usual classroom.
Do not bringscratch paperorother materials to theexamination. You will answer onthe 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 alge
braic/derivation problems. The following sections of chapters
4,5, 7, 9, 10, 12, and 22 everything
in my notes on the class web page will be covered, with two exceptions:
1)
pages 8494 on fair
games and martingales, and 2) pages 95108 on Real Options.
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 some of the more interesting problems from the earlier material. In
general, formulas will be provided (do
not
memorize the BlackScholes 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).
PostMidterm 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.
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 Spring '08
 WHITNEY
 Capital Asset Pricing Model, Options, representative, Real options analysis, Mathematical finance

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