Dear all, I have uploaded two things in the gradebook:
1. Your score on the quiz, out of 15.
2. A grade for your midterm out of 20, which is based on this score. The major difference between 1 and 2 is that I counted two questions as bonus, because they did not help to differentiate between students that scored better/worse on all the other questions. I plan to discuss these questions in the first class after the break, which will be Tuesday April 1. There will be no class on Monday 31st, so that you can catch your breath.
Let me know if you have any other questions.
Martijn
PS. The two questions were:
* Suppose we live in a world where a two-factor APT model holds and the first factor in the model is the market portfolio. Which of the following statements is TRUE?
* Consider the data in the table above. Suppose you believe there is a cleverly chosen portfolio of stocks with an expected return of 10%, but standard deviation equal to 12%. What does your belief imply about the CAPM alpha of the portfolio?
| Exp. Ret. | St. Dev. | |
| Market | 10% | 15% |
| rF | 5% |