ECON 250 Midterm: ECON 250 Pastmidterm1 mid1 08W sol

• School: Queen's University
• Department: Economics
• Course: ECON 250
• Professor: All

Document Summary

At the end of the exam are several formulae. Answers are to be written in the examination booklet. Most of the marks are awarded for showing how a calculation is done and not for the actual calculation itself! There are a total of 100 possible marks to be obtained. Do all 9 questions: (10 marks) there are two stocks a and b. twelve samples for each stock are taken at the same time in a month. Stock a: 21 22 27 22 18 19 23 28 36 33 22 19. Explain. (e) supposed two stock a and b are independent discrete random variables. If the value x of the portfolio can be represented by the linear combination x = 0. 8a + 0. 2b, what is the expected value of x and the variance of x. Answer: a = 24. 17, b = 52. 5, rangea = 18, rangeb = 25, sda = 5. 7, sdb = 8. 372, cva = 0. 236, cvb = 0. 1595.