19 Session 10: Midterm Exam
| Unit | 2 (assessment) |
| Coverage | Sessions 1–9 (Book Ch. 1–5) |
| Format | Closed-book, 75 minutes, handwritten formula sheet permitted |
| Track | Both tracks take the same exam |
| Weight | 20% of course grade |
ImportantThis session is the midterm exam, not a lecture.
Students should arrive 10 minutes early, with all materials, ready to begin. See the midterm blueprint for question structure, topic weighting, and sample questions.
19.1 Logistics
19.1.1 What to bring
- Pen and pencil
- Eraser
- Non-programmable scientific calculator
- One 8.5×11” double-sided handwritten formula sheet
- Photo ID
- Optional: water bottle (no spillable containers near exam papers)
19.1.2 What not to bring (or to stow before exam)
- Phone (powered off, in bag)
- Laptop / tablet
- Programmable or graphing calculator
- Typed or photocopied formula sheets
- Books, notes, or printed papers other than the formula sheet
19.1.3 Timing
| Time | Activity |
|---|---|
| 10 min before | Arrive, settle in, formula sheet check |
| 0:00 | Exam begins — formula sheet and instructions handed out |
| 0:00–0:75 | 75 minutes to complete exam |
| 0:75 | Exam ends — all materials submitted including formula sheet |
| Post-exam | Brief debrief offered as office hours (optional) |
19.1.4 Question Structure (Reminder)
| Type | Count | Points each | Total | Suggested time |
|---|---|---|---|---|
| Multiple choice / short answer | 8 | 3 | 24 | 15 min |
| Quantitative problems | 4 | 9 | 36 | 25 min |
| Conceptual short essays | 2 | 10 | 20 | 15 min |
| Integrative case analysis | 1 | 20 | 20 | 20 min |
| Total | 15 | 100 | 75 min |
19.2 During the Exam
19.2.1 Strategy advice
- Triage first. Read all questions before starting. Identify the easiest and start there.
- Show your work. On quantitative problems, partial credit requires visible reasoning. Final answer alone earns ~40% if correct.
- Time discipline. If you’ve spent 8 minutes on a 9-point quantitative problem, move on. Return if time permits.
- Conceptual essays: Outline before writing. Quality > quantity. A focused 150-word answer beats a sprawling 250-word answer.
- Integrative case: Start with (a). Even partial answers on (b)–(d) earn credit. Don’t lose all 20 points by getting stuck on (a).
19.2.2 If you finish early
- Re-read your answers
- Double-check arithmetic on quantitative problems
- Verify essay structure addresses all parts of the question
- Do not leave early — there is no benefit, and you may catch errors
19.2.3 If you run out of time
- Outline answers you couldn’t complete
- Even bullet points for an essay earn partial credit
- Show setup on quantitative problems you didn’t finish — the setup is worth points
19.3 Academic Integrity
Standard university academic integrity rules apply. Specifically:
- No looking at other students’ papers
- No communication with other students during the exam
- No use of phones, smart watches, or any electronic device beyond the calculator
- No leaving the room with the exam (bathroom breaks permitted with proctor escort)
Violations result in F for the course and referral to the academic conduct office.
19.4 After the Exam
- Solutions: Posted to course site 24 hours after the exam window closes
- Grades: Returned within 7 days
- Re-grade requests: Submit in writing within 7 days of grade posting, citing specific question(s) and the basis for re-grade
- Office hours: Standard schedule resumes Session 11; instructor available for exam debriefs
19.5 What to Expect Next Session
Session 11 begins Unit 3: Decision and Application. The pivot from “what’s wrong with DCF” to “what does GE-LAV deliver.” Session 11 introduces the exit timing problem — the optimal stopping decision for an LP holding an illiquid asset.
Reading for Session 11: Book Chapter 6, sections 6.1–6.4 (~10 pages).