Just realized that I have finished the syllabus for midterm 2 in your section. The topics that we have covered for mid 2 include
1. Investment risk (Systematic and non systematic)
2. Standard deviation, correlation, variance and co variance calculation.
3. Calculating Risk and return of portfolio.
4. Zero variance portfolio
5. Minimum variance portfolio.
6. Risk aversion and different types of investors
7. Utility measurement and utility curve.
8. Optimum Capital allocation and capital allocation line
9. Capital allocation line in-case of borrowing
10. Graphical demonstration of capital allocation using utility curve.
11. Sharpe ratio/Reward to volatility ratio
12. Optimum risky portfolio and how to construct the optimal complete portfolio.
13. Efficient frontier.
And if there is anything else I have covered in the classes between midterm 1 and midterm 2.
There is a lot to understand, remember and grasp the core concept of all these above mentioned topics. I don't want to overburden you with anymore topic for this exam. So we don't need to have a class on Sunday. You can rather use this time at home and prepare for this exam and also for your other exams in the coming exam week. I will be available in my office on Sunday from 10.30 am till noon in-case you need to see me. All the best with all your exams. And remember the tips I gave you for Fin 425 midterm: Stay relaxed, stay focused, be well rested and tension free. If you get nervous and stressed, despite very good preparation your exam probably will not be that good.
