Structure
Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit
Structure
The quiz will have the following structure.
True/False: 20 marks across 8 statements
Thee ouestons are imianded to ensure that er comets n the ourse rae hecmne instrutwe noweo o ou conents are roudty eauay dstrbted acros the matera fom ecture wexs 1thoum5
"simple" Numerical 30 marks across 5 questions
These wi e oe emied not mutne croe mumera uestons thatwi reasorady athare to uestons set ethe m ecture rin tutra ssrments there s aproamatey ome cueston tor eaci ecture weequestons wl take onty few steos to sole Make sure ou read the questons aretuly-thee may he erta informaton wanto make sure that you now whatinfomaton is eleant to the queston being asked
"standard" Numerical 30 marks across 5 questions
Thesew be hade mumara guestonsthat eue oe ng ted owlete eston a re tha yo ombme coneots ton muoe ectues Te uetons y e ue ctoe bat can aso be coe esonsemye
is that multiple choice wil help you identify calculation erors --if your answer is not one of the options provided, then you know yoy made an eror
"conceptual" Questions. 20 marks across 4 questions (subject to change)
These cwestons wl asx yo to etend you mowede tf e oets n the oum ma cae asumptons ofa cont and ak o t oser te moaons uestons e mude ctoce rtme fase stuethis escidtosounds harder than it will be
The stuctre atoe is mtended to e eole do reasonaty ve on the u the rs 50 mas stod be atie adletor eeroetha has teded lectures and ot n rasnefot n te ttra asomeants Tteemamg50na r e aa out helee cute my oe s ta nne tau eaed t a edtthn cedt wt to m stes scs ad h dstinctons mat e ae to acteemt notumeasnay s
Topics
lmportant topics to have reviewed for the quiz includde!
Week 1:
Basic bond pricing. Be sure to know how to price bonds with different coupon paymentfrequencies.
Holding period return and annualised compound yield.
Week 2:
Inferring forward rates.
Calculating duration and convexity.
Estimate changes in bond values using duration and convexity.Immunization
Term structure theories
Week 3.
- Computing expected returns and standard deviations using states and probabilitiesComputing expected returns and standard deviations using historical dataComputing the expected return of a portfolio of assets.
Computing the standard deviation of for a portfolio of assets.
Computing covariance and correlations for portfolios of assetsQuadratic utility and indifference curves. There will not be any guestions on other kinds of utility
Week 4:
Minimum variance frontier.
. Minimum variance portfolio and the efficient frontier.
The optimal tangency portfolio.
Capital Allocation Lines.
The Capital Market Line.
Sharpe Ratios.
Week 5.
CAPM and the Security Market Line.
Betas as a measure of systematic risk.
Calculating asset weights in the market portfolio
Calculating asset risk and return contributions to the market portfolio.
2023-07-14