What is the meaning of the variance or its meaning fro returns
and its use use in creating portfolios...?
How risk can be measured using the variance of a stock's
return?
Include Sources... Base answers upon the work of Markowitz and
Sharpe/Litner..
Derivation, meaning and the interpretation of estimated
(parameter) coefficients.
Explain the factors to determine the quality of the regression
equation.
Explain the nature and function of the OLS assumptions.
Explain the process of hypothesis testing for the
parameters.
Explain the source and derivation the t-test, its use, and
possible abuses.
tests for estimated coefficients and overall equation.
Explain the geometric interpretation of exact differential
equations. Talk about gradients, the multivariable chain rule,
parametric curves and velocity or tangent vectors. What do these
have to do with the condition for exactness of a differential
equation? Use a specific example and draw pictures to
elaborate.
What is the norm-referenced interpretation of test scores? What
is the criterion-referenced score interpretation? Using this
homework provide an example for each kind of interpretation.