1-Discuss the mean-variance metrics associated with Markowitz as a risk management tool. What makes it a risk management tool? To do that, listen carefully to the Taleb video where he refers to mean-variance nonsense. Explain what he means by this and why he is so angry. Recall what you learned in W2 about Markowitz.

2-Compare and contrast the characteristic line and the security market line and then discuss the practical significance of the capital asset pricing model, defining your terms as you go.

3-Compare and contrast: credit default swaps and collateralized debt obligations. Define terms and explain carefully.

4-Outline a statement about the underlying principles that are the philosophical and legal foundations of the financial market system in the United States. HINT: Its listed on the Financial Markets Diagram (W1) if you know where to look for it.

5-Has Dodd-Frank adopted enough of the principles of the Canadian financial market system to protect the USA from another financial crisis? Be specific, to show your knowledge of both Dodd-Frank and the Canadian system.

6-What makes organized equity and derivatives exchanges transparent and over-the-counter (OTC) derivatives trading opaque? Define terms and explain carefully, especially the impact on investors of opaque OTC markets.