Introduction
Story 1: Tesla
This is the Tesla Roadster.
All-electric car, based on the Lotus Elise, introduced in 2008.
Cost 110,000 at the time. I believe they initially had a range around 100 miles on a charge,
but subsequent improvements have boosted t
Exercise 4 Random Walk
Finance 320 - Investment Theory
Name_
Class period (circle one):
9:30
11:00
4:00
Answers to all problems must be written by hand using pencil or pen. Write legibly. Typewritten
answers are not acceptable. Solutions must be turned in
Exercise 3 Diversification
Finance 320 - Investment Theory
Name_
Class period (circle one):
9:30
11:00
4:00
Answers to all problems must be written by hand using pencil or pen. Write legibly!
TYPEWRITTEN VALUES ARE NOT ACCEPTABLE. Solutions must be turned
Math 340: Exam 2 Review
Jim Brunner
November 9, 2016
1
List of Topics
Vector Spaces
definition, operations, subspaces
The span of vectors
Linear combinations, subspaces (again)
Linear dependence & independence
A basis for a space
dimension, coordin
Exercise 1 Transaction costs
Finance 320 - Investment Theory
Name_
Class period (circle one):
9:30
11:00
4:00
Answers to all problems must be written by hand using pencil or pen. TYPEWRITTEN VALUES ARE NOT ACCEPTABLE.
Solutions must be turned in on copies
Practice mid-term exam for
FIN 330: Derivative Securities
(75 min/100 points)
October 14, 2016
placeholder
Fall 2016
UW School of Business
Prof. Eraker and Dr. Brendler
Instructions
This is a closed-book, closed-note exam. You are allowed to use only you
Practice Midterm
Finance 330
Bjrn Eraker
1. If the standard deviation of a stock is 2% per day, then the standard deviation per year is
730%
38.1%
31.74%
24%
2. You have $10,000 in your Interactive Brokers account. You short 10,000 worth of Facebook s
Chapter 1
Scarcity: means that society has limited resources and therefore cannot produce all the goods
and services people wish to have.
Economics: the study of how society manages its scarce resources.
- Economists therefore study how people make decisi
Econ. 326(Fall 2016)
Homework #3: 20 points
I.
II.
Show all of your work in each question. In parts (d), (e), and (g) make sure to set up your null
and alternative hypotheses and write your conclusions. Also, please round your numbers to 2
decimal points.
Discussion 8 Econ 701
Auctions
Review (From last year handout)
The Revenue Equivalence Theorem
Definition: A standard auction is an auction in which:
i. The bidder with the highest valuation gets the good
ii. The expected payment of the bidder with the lo
Discussion 4 Econ 701
Fixed Fee Monopoly Brokerage
Concepts and Definitions
Proposition 1: Suppose that there exists a feasible pairing P in which the number
of consummated exchanges equals Q. Then there exists a feasible pairing 0 ,
possibly distinct fro
Discussion 7 Econ 701
Auctions
Review
HW2
Random allocation- The seller can offer a lottery to the buyer.
Non- Random allocation No lotteries (Thats what we have seen so far).
Auctions
- n players = 1,2,3, , . And is the valuation of player i.
- () is the
Discussion 2 Econ 701
Continuous Probability
Concepts and Definitions (Taken from the handout from last year)
Joint distribution function: , (, ) = Pr( , ).
Continuous random variable: takes values in an uncountable set, for example, the
height of a perso
Discussion 5 Econ 701
Bilateral Trade under Asymmetric Information
Mechanism design
Concepts and Definitions
Private information - The buyers valuation v and the sellers cost c are drawn
independently from distributions with distribution respective functi
Discussion 3 Econ 701
Gains from Trade
Concepts and Definitions
An allocation specifies: (1) who ends up holding the good(s) and (2) the net
transfers of money received by each agent (where positive transfers imply the
agent has received money and negativ
Discussion 1 Econ 701
Discrete Probability
TA: Moheb Zidan
E-mail: Zidan@wisc.edu
Office: SS 6413
Office hours: T 2:30-3:30, F 12:30-13:45
Discussions: F 9:55-10:45 Van Hise 383
F 11:00-11:50 SS 6203
F 2:25-3:15 SS 6232
Concepts and Definitions
Experiment
A senior citizen gets a partitime job at a fastifood restaurant. She earns $10 per hour for each hour she worksl and she works exactly 30 hours per week. Thus. her
total pretax weekly income is 8300. Her total income tax assessment each week is $50, but s
Suppose the government adopts a policy that forces pesticide producers to bear
the social costs ofgroundwater contamination associated with the use oftheir
product. This policy will increase the price ofpesticides.
Since orange growers regard the pesticid
Tim goes to a design academy to become a toy designer. This is an example of
entrepreneurship.
"I" an investment in human capital.
an investment in physical capital.
an increase in labor.
Which ofthe following best demonstrates the concept ofscarcity?
V M
Explain which is the independent variable and which is the dependent variable for each ofthe following examples.
I. Once you determine the price ofa notebook atthe college bookstore. you will decide how many notebooks to buy.
Number ofnotebooks to buy Dep
Suppose a government official is trying to decide whether or not to allow more immigration. Which ofthe following
is not an aspect ofthe economic way ofthinking that would apply in this decisionmaking process?
Rationality.
Selfinterest.
Responding to ince
WORKSHEET 8: MARGINAL UTILITY
Economics 151
Collier
The following table represents the marginal utility of various goods (W, X, Y, Z) to a particular
consumer. If this consumer has an income of $100. , how much of each good will he consume if the
price of
STUDY GUIDE: EXAM I
Economics by Roger A. Arnold
Chapters 1-4, 17, 18
Economics 151
Collier
Chapters Covered:
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
1
2
3
4
17
18
What Economics is About
Economic Activities: Producing and Trading
Supply and Deman
Econ Unit Two Study Guide
Chapter 19
Explicit Cost: payment made to someone other than the owner of the firm; wages,
utilities, miscellaneous expenses, costs of goods sold
Implicit Cost: a cost borne by the owner of the firm; forgone interest earned, fo
ECON 151 Unit 1 Study Guide
Chapter 1
1. A theory is a testable explanation of facts.
2. To test a theory you must make the following statement If this theory is correct we must
observe: A, B, C
3. Good Theory: Predictions are upheld, the implications of