ECO349H5 Study Guide - Final Guide: University Of Toronto Mississauga, Liquidity Premium, Yield Curve

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The university of toronto mississauga and you, as a student, share a commitment to academic integrity. Unauthorized calculators and notes are also not permitted. Do not have any of these items in your possession in the area of your desk. Please turn the electronics off and put all unauthorized aids with your belongings at the front of the room before the examination begins. If any of these items are kept with you during the writing of your exam, you may be charged with an academic offence. A typical penalty may cause you to fail the course. Please note, you cannot petition to re-write an examination once the exam has begun. Explanation: (a) 7 marks, (b) 6; and (c) 5 marks. Follow the same notations used in class, (a) briefly state the assumptions and (b) show the step-by-step derivation of the statistical approach in explaining how the random walk behaviour of stock prices supports the efficient markets hypothesis.