Lecture 12

• In lecture 12, we discussed bivariate normal distributions (3.6) and optimal portfolio allocations (3.8). Please note that your textbook has several typos for the solution of example 3.62. Please check the lecture slides for a correct answer.

• To save your time, I want to tell you that the following sections are NOT covered in your midterm test.

1.5, 1.8, 2.13, 2.15, 2.16, 2.17, 3.5.4, 3.7, 3.8.3, and 3.8.4 Also, you do not need to know the tight confidence range.

• A set of practice problems is on Canvas. Please work on them at your convenience and let me know if you have questions.