🙋 Section/Student Qs for Lecture 2

This section was reschedule from Saturday, June 29 to Sunday, June 30, at 7:30, as announced here

Agenda for Sunday Section, June 30 ✅

• Slide Review, concentrating on the most important and challenging slides from this week’s lecture.
• Pages about this lecture on this website. Read 🧭 Getting Oriented for how to find them on the site.
• Office Hours. Click here for notes and timestamps. Email office hour questions to robecon1452@gmail.com and I will cover them next section.

Click here to learn about timestamps and my process for answering questions.

📅 Questions covered Sunday, June 30

When can we view solutions

Clarified practice question

🕣 9:28
Thank you to the student who used the “one-click feedback form” to submit the following question: (there is now a feedback form at the bottom of each page of this site)
❔ Page Path: https://1452.robmunger.com/l1/calexamples/
Message: The way the second question is written out is confusing.
I think you want us to do .09/.04543 = 1.9811
1.9811*100 = 198.11%
198.11% investment in risky asset will give a 12% expected return of the complete portfolio.

✔ Thanks! I’ve overhauled the writing of the question. You can find the new question here: E(rc) to sd problem.

Can σ C= σ P ?

🕣 9:29
❔ Page URL: https://1452.robmunger.com/l1/whereformulas/
Message: Hey Rob, Can σ C= σ P ? is it when 50% invested and 50% of the portfolio in cash? Q2 in HW my answers σ C= σ P after the calculation. Zeid Timestamp: 2024-06-27T02:41:16.601Z

✔ Our formula says that $σ_C=yσ_P$. The only way for $σ_C$ to equal $σ_P$ is if y=1.

🕣 9:30
❔ Can you review what characteristics a risk averse investor is looking for when investing? Is it always simply a low standard deviation? I believe I saw a formula somewhere in your notes that clarifies this but now i can’t find it

✔

🕣
❔ Can you confirm that the slope of the CAL is equal to the Sharpe ratio?

✔yes

🕣 9:30
❔ I hope this email finds you well. I was wondering if you will be posting the Zoom recordings for Section on the SSP website? I am not able to attend the section that is hosted from 1-3 because I am in a different time zone. Therefore, I would sincerely like to have access to the recordings.

✔ Yes, all recordings will be posted. You can find more information here: https://1452.robmunger.com/l0/watching/

🕣 9:34
❔ Can you do an overall interpretation of Q9?

✔

🕣 9:35ish
❔ Not sure how to make this a question so can you do interpretation for Q8?

I think we are missing info - don’t we need to know “y” so we can figure out the E(rc)?

✔ You do not need to know y to figure out the slope of the CAL.

Entering numbers into Connect

🕣 9:35ish
❔ We also discussed the interpretation of q8 and how to enter numbers into questions 1 and 2

✔

s1452 Help Links: 👨‍💻

• General Info on sections and using this website.
• Email office hour questions to robecon1452@gmail.com. PS1Q2=“Question 2 of Problem Set 1”
• Slides with handwriting from section and other useful files