Simple calculations with Binomial Asset Pricing model.
Part A: 2 questions worth (25 and 25 marks) respectively
Q1: Short answer multiple choice questions on basic portfolio mean, variance and asset weight calculations.
Q2: Portfolio Optimization question under Markowitz formulation.
Part B: 4 questions worth (20, 20, 10 and 15 marks) respectively
Q1: Real World and Risk Neutral pricing measure, change of measure, martingale properties and conditional expectations
Q2: Replication arbitrage free pricing derivations
Q3: Capital Asset Pricing Model example
Q4: Simple calculations with Binomial Asset Pricing model.