i have a question in Example 3…
we were given a beta of 1.2 and you have mentioned earlier we assume any given beta is share beta i.e equity beta …. so why we have used then given beta of 1.2 as asset beta ?

Could you please also check capital multiperiod rationing linear programming part. Shouldn’t it be 10a+10b+5c+d=20 – not 20000, the same with 5000. Thank you for advice.

Could you please check if in revision notes there are mistake in option pricing. D1 should be -0.477=(-0.095+0.0237)/0.15. In your calculation seems 0.25 wasnt multiplied by 0.05.

Arwa says

hi sir,

i have a question in Example 3…

we were given a beta of 1.2 and you have mentioned earlier we assume any given beta is share beta i.e equity beta …. so why we have used then given beta of 1.2 as asset beta ?

braske77 says

Could you please also check capital multiperiod rationing linear programming part. Shouldn’t it be 10a+10b+5c+d=20 – not 20000, the same with 5000. Thank you for advice.

braske77 says

Could you please check if in revision notes there are mistake in option pricing. D1 should be -0.477=(-0.095+0.0237)/0.15. In your calculation seems 0.25 wasnt multiplied by 0.05.

philly says

why the lecture is using Rm 14 but in the notes it is 12.

ellyza says

the notes calculations and lectures are different.

chaidiyun says

very helpful letures, thanks a lot!

hope i can pass next time!