UofT Stat 261
1
2012 August 08
Review of Estimation
Usually when we talk about estimation, we talk about estimating the parameters
of a distribution fX (x|). Estimation can be done much more generally.
Consider the following example
Example 1 (Estimating
UofT Stat 261
1
2012 August 01
GLR Tests for the Multinomial Distribution
Recall that we touched on this special case for Maximum Likelihood Estimation.
In the framework of hypothesis testing, this is case also deserves special attention
since, again, the
UofT Stat 261
1
2012 July 23
Wrap Up Eciency
Eciency had to do with the variance of an estimator . We are now going to
give two theorems (subject to the usual requirements) that tell us when we can
improve on an estimator (note: no statement is being made
UofT Stat 261
1
2012 July 16
Condence Intervals for ML
Two approaches, depending on what is available:
Exact results available: these are rare and special cases
No Exact results: use asymptotics
i.i.d.
Example 1 (Exact Results: Inference for ). X1:n N (
UofT Stat 261
2012 July 11
Last Time: Discussed
Delta Method
Estimation - Method of Moments (system of equations), Maximum Likelihood (likelihood equation)
1
Multinomial Cell Probabilities
Goal: Another example of Maximum Likelihood in a dierent context
UofT Stat 261
1
2012 July 30
Generalized Likelihood Ratio Tests
Up to now, we have considered:
simple vs simple hypothesis - where H0 , H1 are both points.
simple vs. one-sided alternative - where H0 is simple, H1 is one side of
H0 .
all with no other
UofT Stat 261
2012 July 09
Contents
1 Delta Method
1
2 Introduction to Estimation
3
3 Method of Moments
7
4 Maximum Likelihood
10
1
Delta Method
Goal: Given a random variable X and any function g(x) (with enough derivatives), approximate the mean and vari
9/7/2012
Corporate Finance
How corporations make financial
Corporate Finance
decisions.
Instructor: Jiandong Ren
Dept. of Statistical and Actuarial
Sciences
Western University
What is a corporation?
What is a corporation?
Definition of corporation
Defi
25/09/2012
Chapter 5: NPV and other investment
Criteria
6- 1
NPV and its Competitors
The Payback Period
Book Rate of Return
Internal Rate of Return
Profitability
Capital Rationing
Chapter 5: NPV and other investment
Criteria
6- 2
NPV depends on cash flow,
9/18/2012
5- 1
Ch 4:Valuing Common Stocks
This chapter studies what determine the
shares value.
A real example: AAPL
5- 2
Stocks & Stock Market
Apple has about - billion shares outstanding and
these shares are owned by about - million
shareholders.
If APP
3- 1
Ch2 continued
Shortcuts in calculating PV
Perpetuities and Annuities
Growing Perpetuities and Annuities
Compound Interest & Present Values
3- 2
Present Values
Recall that
C1
PV = DF C1 =
1 + r1
r1 is the opportunity cost of capital when investing
9/10/2012
Ch2. The Net Present Value Rule
This chapter introduce the use of present
value to evaluate investments.
An initial investment
A forecast of future (usually uncertain) cash
flows.
The Net Present Value Rule
An example
You are given:
The cost of
AS2555a Midterm 1
October 14, 2011
Note: each multiple-choice question is worth 10 points and no part credits will be
awarded if your answer is incorrect. For short answer questions, you need to show
necessary calculations or reasoning to get credits.
1.
Chapter 04 - The Value of Common Stocks
CHAPTER 4
The Value of Common Stocks
Answers to Problem Sets
1.
a.
True
b.
True
2.
Investors who buy stocks may get their return from capital gains as well as
dividends. But the future stock price always depends on
Brealey/Myers/Allen Principles of Corporate Finance 10e
EOC Problem Conversion Guide
9th Edition Chapter
Number
Chapter 1
Finance and the Financial
Manager
Problem Sets
9th Edition
Question Number
10th Edition
Chapter Number
Chapter 1
10th Edition
Questio
Chapter 01 - Goals and Governance of the Firm
CHAPTER 1
Goals and Governance of the Firm
Answers to Problem Sets
4.
c, d.
5.
b, c.
6.
Separation of ownership and management typically leads to agency problems,
where managers prefer to consume private perks