g Assets with random rates of return r1, r2 have expected rates ¯r1 = 1, ¯r2 = 2, variances σ1 2 = 1, σ2 2 = 3 and covariance σ1,2 = 1. Consider portfolios consisting of weights w1 = 1 − α and w2 = α of these assets. a) Find weights, expected rate of return ¯rMVP, and volatility σMVP for the minimum variance portfolio. b) Make a sketch in the σ, r¯ plane of the portfolio curve. Label the asset points (σ1, r¯1), (σ2, r¯2), the minimum variance point (σMVP, r¯MVP), and the efficient frontier. c) An individual with utility function U(y) = 16y−y 2 and with unit initial wealth constructs a portfolio consisting of fractions 1 − α and α of these assets. Find the maximum over α of the expected utility E[U(1 + rp(α))], where rp(α) is the portfolio rate of return. d) Calculate σp, ¯rp for the portfolio corresponding to the maximum expected utility, and show that this portfolio is efficient. g

Which website did you use to find the image you used in your career presentation? complete sentences are not necessary.

Alandlord rented an art studio to an artist. under the terms of the signed, written, two-year lease, the artist agreed to pay the landlord $1,000 per month and to assume responsibility for all necessary repairs. after the first year of the lease, the artist assigned the balance of his lease to a sculptor. the landlord approved the sculptor as a tenant and accepted two rent payments from her, and then the landlord sold the building to an investor. the sculptor had made two payments to the investor when an electrical fire broke out in the studio, injuring the sculptor. the fire was caused by faulty wiring. the landlord was aware that there was a dangerous wiring problem when he leased the property to the artist. but when the landlord discovered how costly repairs would be, he decided it would be more profitable to sell the property than to repair it. the problem was not easily discoverable by anyone other than an expert electrician, and the landlord did not tell the artist, the sculptor, or the investor about the problem. the sculptor sues to recover damages for her injuries. from whom can the sculptor recover?

The lee family is looking to buy a house in one of two suburban areas just outside of a major city, and air quality is a top priority for them. overall air quality is calculated by taking measures in 100 locations within each suburb and then calculating a measure of central tendency. in one suburb, there is a major bus station that creates very poor air quality at its location but has no impact in the surrounding parts of the suburb. in this situation, which measure of overall suburb air quality would be most useful?