FE5133 – EXAM PREP LEC *Lecture 10 is on Athena – use that with these points mentioned in class. - Multiple choice questions should be quick to finish, but make sure you read the multiple question carefully and define the variables – as they might be tricky. There is no negative marking – so you can guess if you don’t know – you won’t lose marks. - For the essay questions, remain concise, to the point and use examples, where necessary. - Don’t exceed work count – this will be defined on the question. Anything beyond the word count limit won’t be marked. - We are not allowed any aids, calculators etc, but you can bring pen and paper might be available. - For the essay questions – remember not to contradict yourself. - Formula sheet provided (on Athena) – note the difference between nominal and relative (Might be named differently in lecture notes). Example 1 – Lecture 10 (MCQ Question) - Note that the nominal or effective not clearly defined as the required answer, but you can infer it is relative due to the answer being in basis points. Use the paper/notepad to write out the items defined, to make it easier to understand. This also ensures you read the question carefully. Terminology questions – Lecture 10 Example - This will have 75 word limit. Define the term o Explain in more detail o Define application/geography if relevant if relevant o Link to other definition or put in relation to another term that is applicable. Questions 7/8 – Lecture 10 Example - You could be asked to interpret figure from lecture. - Order book explanation – given example. Part of problem set on market mechanisms. - Calculation questions may be followed up with testing understanding. Advice He did not really want to say it, but it seemed that a lot of emphasis was placed on the following section: And if you can answer these questions in detail, you should be fine. Examples of questions he mentioned were: • • • • Pros/cons of market fragmentation/transparency – be able to provide theoretical explanation and understand the economic theory. Resiliency Market integration – think about the guest lecture. Price impact Link to the Efficient market hypothesis. - Interpret – not a long discussion, define and expand. For these questions. 1/2 examples are required – full references not required. But I got a sense that he would be interested in us referencing work in class/lecture/guest lecture – so articles, seminar work etc. But only add relative information. Slide 7 – Equation We won’t be expected to know how a equation is derived – but we need to understand it. The example here we are asked to interpret the equation. (See examples from video lecture). Slide 8 – Expanded response. The key point are on the first page of this document – but to reiterate. You will see he defined it, linked it to one of the models, argued the point in the second paragraph and provide 2 relevant examples, to link it to the theory. Slide 9 – Equation Make sure you know how to answer a question like this. From the class – from my perspective – it was clear a question like this will be in exam.
