Question: A. Why does a house broker usually recommend her clients the median house price in a community but not average price? (5 points) B. We

A. Why does a house broker usually recommend her clients the median house price in a community but not average price? (5 points) B. We have a linear model y = a + b * x + e, please specify the (median ) L1-regression for this model. (5 points) C. How do you measure Management Quality for a stock-selection strategy? (5 points) D. What is the major contribution of Stephen Ross to finance? (5 points) 1. Explain by both math and words the following econometric definitions. A. Unbiasedness (10 points) B. CAPM (10 points) C. Margin of Safety (10 points)

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