Cornell University Fall 2010 Economics 3330: Problem Set 10 Due 12/2/2010
1. Consider the following parameters: current stock price $50, standard deviation 50%, exercise price $50, interest rate 4%. a. Use the Black-Scholes formula to find the value of a
Cornell University Fall 2009 Economics 3330: Problem Set 5 Due 10/26/09
1. Question 5 of Chapter 8 of Text A portfolio management organization analyzes 60 stocks and constructs a mean-variance efficient portfolio using only those 60 securities. a. How man
Cornell University Fall 2009 Economics 3330: Problem Set 5 Solutions 1. Question 5 of Chapter 8 of Text A portfolio management organization analyzes 60 stocks and constructs a mean-variance efficient portfolio using only those 60 securities. a. How many e
Cornell University Gregory Besharov Economics 3330: Problem Set 12 Solutions (The Last Problem Set) 1. Consider the following information regarding the performance of a money manager in a recent month. The table presents the actual return of each sector o
Cornell University Gregory Besharov Economics 3330: Problem Set 11 Due November 24, 2008
1. A common stock pays an annual dividend per share of $2.10. The risk-free rate is 7% and the risk premium for the stock is 4%. If the annual dividend is expected to
Cornell University Gregory Besharov Economics 3330: Problem Set 10 Due November 17, 2008
1. Suppose you know that a stock, currently at 50, is going to take the value 85 in six months. The standard deviation of the stock is 50% and it pays no dividend. Th
Cornell University Gregory Besharov Economics 3330: Problem Set 8 Solutions
1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. Efficient mark
Cornell University Gregory Besharov Economics 3330: Problem Set 8 Due November 3, 2008 1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. Eff
Cornell University Gregory Besharov Economics 3330: Problem Set 7 Due October 27, 2008 1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. If
Financial Markets
Econ 333 Spring 08
1
Financial Markets
Having considered the general principles of asset pricing, we now apply these to three key financial markets: The stock market, the bond market, and the foreign exchange (FOREX) market. Each
Cornell University Fall 2009 Economics 3330: Problem Set 8 Solutions 1. A hedge fund has a net asset value of $62 per share and a high water mark of $66. The standard deviation of the funds annual returns is 50% and the risk-free rate is 4%. The incentive
Cornell University Fall 2009 Economics 3330: Problem Set 6 Solutions
1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. If the semistrong for
Cornell University Fall 2009 Economics 3330: Problem Set 4 Solutions
1. Questions 10 and 11 of Chapter 6 of Text a. Calculate the expected return and variance of portfolios invested in T-bills and the S&P 500 index with weights in the following table. Ass
Cornell University Fall 2009 Economics 3330: Problem Set 2 Solutions
1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. If a bond falls in va
Cornell University Fall 2009 Economics 3330: Preliminary Examination I October 5, 2009 The examination has 50 points and lasts 50 minutes.
1. (12 points) True/False/Explain State whether each of the following is true or false and explain your answer. Plea
Cornell University Gregory Besharov Economics 3330: Problem Set 2 Due September 15, 2008 1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. T
Cornell University Fall 2009 Economics 3330: Preliminary Examination II November 9, 2009
1. (12 points) True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sen
Cornell University Fall 2009 Economics 3330: Problem Set 2 Due 9/23/09 1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. If a bond falls in
Cornell University Fall 2010 Economics 3330: Problem Set 10 Solutions 1. Consider the following parameters: current stock price $50, standard deviation 50%, exercise price $50, interest rate 4%. a. Use the Black-Scholes formula to find the value of a call
Cornell University Fall 2010 Economics 3330: Problem Set 9 Due 11/23/10
1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. It is never optima
Cornell University Fall 2010 Economics 3330: Problem Set 9 Solutions
1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. It is never optimal t
Cornell University Fall 2010 Economics 3330: Problem Set 8 Solutions
1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. If a company announce
Cornell University Fall 2010 Economics 3330: Problem Set 8 Due 11/4/10
1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. If a company announ
Cornell University Fall 2010 Economics 3330: Problem Set 7 Due 10/28/10
1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. Finding values of
Cornell University Fall 2010 Economics 3330: Problem Set 7 Solutions
1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. Finding values of alp
Cornell University Fall 2010 Economics 3330: Problem Set 6 Due 10/21/10 1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. For diversificatio
Cornell University Fall 2010 Economics 3330: Problem Set 6 Solutions
1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations to no more than two sentences. a. For diversification t
Cornell University Fall 2010 Economics 3330: Problem Set 5 Solutions
There are three assets: a stock fund, a bond fund, and a risk-free T-bill money market fund that yields a sure return of 5.5%. The stock fund has an expected return of 15% with standard
Lecture 01
Introduction to Econometrics
Outline Features of Modern Economics? 1. modelling (math) 2. empirical verication (statistics) Role of Quantitative Analysis 1. Role of Modeling 2. Role of Econometrics Limitations of Econometrics Conclusion
1
I. Wh
Cornell University Fall 2009 Economics 3330: Problem Set 8 Due 12/4/09
1. A hedge fund has a net asset value of $62 per share and a high water mark of $66. The standard deviation of the funds annual returns is 50% and the risk-free rate is 4%. The incenti