Bowei Jin
01/28/2016
Problem 1
1. Real assets is assets that play an essential role in
economys productive capacity, which can also
determines economys material wealth and net
income.
Financial assets is assets like income whose value is
derived from a co
Financial Economics
Econ 4751
Spring 2015
Problem Set 1
You may work on this assignment in groups, but must hand in your own individual assignment.
Put the names of anyone you worked with on your assignment when you hand it in. Copies that
dont give credi
ECON-4751 Financial Economics Fall 2013 (B. Zurowski)
Homework #2 : Due Thursday, October 17th
Submission Requirements: Type It Explain Your Work Give Credit to Collaborators
There are four questions. Each question is worth the same number of points.
Q1.
ECON-4751 Financial Economics Fall 2013 (B. Zurowski)
Homework #2 : Due Thursday, October 17th
Submission Requirements: Type It Explain Your Work Give Credit to Collaborators
There are four questions. Each question is worth the same number of points.
Q1.
Money and Banking
Week 2 - Part I
Martin Rostagno
University of Minnesota
UMN (University of Minnesota)
Econ 4721 2-1
1 / 12
Outline
1
Pareto Ecient Allocations
UMN (University of Minnesota)
Econ 4721 2-1
2 / 12
Pareto Ecient Allocations
What is the idea
ECON 4751 Fall 2013: Homework 5. Due Dec. 11, 2013 (4:30PM at the latest)
Type It & Print It Show Your Work Give Credit to Collaborators
All rates are annual.
(25) Q1.
Price the following bonds:
Keep in mind that US Treasury and corporate bonds make coupo
Financial Economics
Econ 4751
Fall 2014
Midterm Exam
October 7, 2014
Name:
Answer all questions as best you can. The highest possible score is 100 points. You 1
hour and 15 minutes to complete the exam. Good luck!
Section 1: Multiple Choice (2 points each
Financial Economics
Econ 4751
Fall 2014
Midterm Exam
October 7, 2014
Name:
Answer all questions as best you can. The highest possible score is 100 points. You 1
hour and 15 minutes to complete the exam. Good luck!
Section 1: Multiple Choice (2 points eac
Homework 1, Financial Economics Summer 2011, Instructor Rene Schwengber Due date: Tuesday June 28th. Before answering these questions make sure you read all handouts as well as required reading, your class notes. If you think a question is not clear send
1. According to the Capital Asset Pricing Model (CAPM) a well diversified portfolio's rate of return is
a function of
A. systematic risk.
B. unsystematic risk.
C. unique risk.
D. reinvestment risk.
E. interest rate risk.
With a diversified portfolio, the
1. According to the Capital Asset Pricing Model (CAPM) a well diversified portfolio's rate of return is
a function of
A. systematic risk.
B. unsystematic risk.
C. unique risk.
D. reinvestment risk.
E. interest rate risk.
2. Which statement is not true reg
Money and Banking
Week 4 - Part I
Martin Rostagno
University of Minnesota
UMN (University of Minnesota)
Econ 4721 4-1
1 / 19
Outline
1
Review of CE with growing supply of money
2
Seignorage
UMN (University of Minnesota)
Econ 4721 4-1
2 / 19
Sovling the Eq
Money and Banking
Week 4 - Part II
Martin Rostagno
University of Minnesota
UMN (University of Minnesota)
Econ 4721 4-2
1 / 25
Outline
1
Model of International Currency Exchange
2
Nominal exchange rate
3
Purchasing power parity
UMN (University of Minnesota
Money and Banking
Week 5 - Part I
Martin Rostagno
University of Minnesota
UMN (University of Minnesota)
Econ 4721 5-1
1 / 25
Outline
1
Review
2
Last 2 international monetary systems
UMN (University of Minnesota)
Econ 4721 5-1
2 / 25
Motivation
Fixed Excha
Money and Banking
Week 6 - Part I
Martin Rostagno
University of Minnesota
UMN (University of Minnesota)
Econ 4721 6-1
1 / 14
Outline
1
Phillips Curve
2
The Lucas Model
3
The Lucas Critique
UMN (University of Minnesota)
Econ 4721 6-1
2 / 14
Introduction
Ba
General ideas:
Book review
Summary of an academic paper or a survey of literature
News item or something from The Economist
Discussion of equity ratings reports
Trading Strategies
History of some fina
Name:
3022 In-class practice 2
Problem 1
What test should we use matched pairs t or two sample t?
1. Comparing vitamin content of bread immediately after baking vs. 3 days later
(tests made on dierent set of loaves).
2. Comparing vitamin content of bread
Money and Banking
Week 7 - Part I
Martin Rostagno
University of Minnesota
UMN (University of Minnesota)
Econ 4721 7-1
1 / 34
Outline
1
Introduction
2
Equilibrium without at money
3
Model of Private Debt
4
Rate-of-Return Equality
5
Tobin Eect
6
Risk
UMN (U
Basic spirit
Theoretical background
Application examples of two-sample t procedure
The Wilcoxon Rank-Sum Test
The Permutation Test
Two sample t test and its Nonparametric
Alternatives
Qi Yan
STAT 3022, Summer 2014
1 / 42
Basic spirit
Theoretical backgroun
Chapter 6
Risk Aversion and
Allocation to Risky Assets
Recall Micro Theory
Indifference Curves
Good B
U3
U2
U1
Budget Line
Good A
Portfolio Choice: Capital Allocation
$
Spending
(Consumption)
Saving
(Investment)
Risk-Free Asset
Risky Asset
In this chapter
Behavioral Finance
Part 2
Investor Sentiment
On the last slides, we considered under what
circumstances the rational choice model, and
the EMH, might not give us accurate
predictions about what markets will do.
Now, were going to look at possible
behavi
Money and Banking
Week 3 - Part II
Martin Rostagno
University of Minnesota
UMN (University of Minnesota)
Econ 4721 3-2
1 / 26
Outline
1
Introduction
2
Model of Ination
UMN (University of Minnesota)
Econ 4721 3-2
2 / 26
Big picture
OLG environment (lec 01-
Money and Banking
Week 3 - Part I
Martin Rostagno
University of Minnesota
UMN (University of Minnesota)
Econ 4721 2-2
1 / 18
Outline
1
Barter Economy
2
Barter vs Money
3
Exchange Costs
4
Model of Commodity Money
UMN (University of Minnesota)
Econ 4721 2-2
Chapter 8
Index Models
Motivation
Markowitz models for portfolio selection can
become complicated
For n securities, need about n2/2 estimates for
covariance matrix: With n=3000, this is 4.5 million
Internal inconsistencies in covariance estimates
can p
Money and Banking
Week 1 - Part II
Martin Rostagno
University of Minnesota
UMN (University of Minnesota)
Econ 4721 1-2
1 / 17
Outline
1
Overlapping generations (OLG) model
2
Competitive Equilibrium with Money
3
Characterize the competitive equilibrium wit
PROBLEM SET 2 Answer Key
ECON 3102-003 Intermediate Macroeconomics
Ignacio P. Campomanes
1
Competitive Equilibrium with Distortive Taxes (65 points)
Consider a simple one-period, closed economy model where the representative consumer has utility function
PROBLEM SET 2
ECON 3102-003 Intermediate Macroeconomics
Ignacio P. Campomanes
Due Date: Thursday June. 29 (in class)
1
Competitive Equilibrium with Distortive Taxes (65 points)
Consider a simple one-period, closed economy model where the representative co
PROBLEM SET 3
ECON 3102-002 Intermediate Macroeconomics
Due Date: Thursday 20 of July (in class)
1
Competitive Equilibrum in a Two-Period Model (35 points)
Consider a two-period economy model with 10 identical consumers (N = 10). Each of them has utility
PROBLEM SET 1 Answer Key
ECON 3102-003 Intermediate Macroeconomics
Ignacio P. Campomanes
Due Date: Thursday June 22 (in class)
1
Inada Conditions (15 points)
Show whether the following utility functions satisfy the Inada Conditions for C and l:
1. U (C, l
PROBLEM SET 1
ECON 3102-003 Intermediate Macroeconomics
Ignacio P. Campomanes
Due Date: Thursday June 22 (in class)
1
Inada Conditions (15 points)
Show whether the following utility functions satisfy the Inada Conditions for C and l:
1. U (C, l) = log C +