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11 Pages

### Chap5

Course: BUSINESS FIN, Spring 2010
School: A.T. Still University
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Word Count: 1875

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05 Chapter - Risk and Return: Past and Prologue CHAPTER 05 RISK AND RETURN: PAST AND PROLOGUE 1. The 1% VaR will be less than -30%. As percentile or probability of a return declines so does the magnitude of that return. Thus, a 1 percentile probability will produce a smaller VaR than a 5 percentile probability. 2. The geometric return represents a compounding growth number and will artificially inflate the...

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A.T. Still University - BUSINESS - FIN
Chapter 06 - Efficient DiversificationCHAPTER 06 EFFICIENT DIVERSIFICATION1. So long as the correlation coefficient is neither zero nor 1.0, the portfolio will contain diversification benefits. Any other combination will cause a diversification benefit
A.T. Still University - BUSINESS - FIN
Chapter 07 - Capital Asset Pricing and Arbitrage Pricing TheoryCHAPTER 07 CAPITAL ASSET PRICING AND ARBITRAGE PRICING THEORY1. The required rate of return on a stock is related to the required rate of return on the stock market via beta. Assuming the be
A.T. Still University - BUSINESS - FIN
Chapter 08 - The Efficient Market HypothesisCHAPTER 08 THE EFFICIENT MARKET HYPOTHESIS1. The correlation coefficient should be zero. If it were not zero, then one could use returns from one period to predict returns in later periods and therefore earn a
A.T. Still University - BUSINESS - FIN
Chapter 09 - Behavioral Finance and Technical AnalysisCHAPTER 09 BEHAVIORAL FINANCE AND TECHNICAL ANALYSIS1. Note the following matches Disposition effect d Representativeness bias e Regret avoidance b Conservatism bias a Mental accounting - c 2. Repres
A.T. Still University - BUSINESS - FIN
Chapter 10 - Bond Prices and YieldsCHAPTER 10 BOND PRICES AND YIELDS1. a. Catastrophe bond. Typically issued by an insurance company. They are similar to an insurance policy in that the investor receives coupons and par value, but takes a loss in part o
A.T. Still University - BUSINESS - FIN
Chapter 11 - Managing Bond PortfoliosCHAPTER 11 MANAGING BOND PORTFOLIOS1. Duration can be thought of as a weighted average of the maturities of the cash flows paid to holders of the perpetuity, where the weight for each cash flow is equal to the presen
A.T. Still University - BUSINESS - FIN
Chapter 12 - Macroeconomic and Industry AnalysisCHAPTER 12 MACROECONOMIC AND INDUSTRY ANALYSIS1. A top-down approach to security valuation begins with an analysis of the global and domestic economy. Analysts who follow a top-down approach then narrow th
A.T. Still University - BUSINESS - FIN
Chapter 13 - Equity ValuationCHAPTER 13 EQUITY VALUATION1. Theoretically, dividend discount models can be used to value the stock of rapidly growing companies that do not currently pay dividends; in this scenario, we would be valuing expected dividends
A.T. Still University - BUSINESS - FIN
Chapter 14 - Financial Statement AnalysisCHAPTER 14 FINANCIAL STATEMENT ANALYSIS1. N a. Inventory turnover ratio in 2009. = 2850 / (490 + 480) x .5 = 1.47 b. Debt equity ratio in 2009. = 3340 / 960 = 3.48 c. Cash flow from operating activities in 2009.
A.T. Still University - BUSINESS - FIN
Chapter 15 - Options MarketsCHAPTER 15 OPTIONS MARKETS1. Options provide numerous opportunities to modify the risk profile of a portfolio. The simplest example of an option strategy that increases risk is investing in an `all options' portfolio of at th
A.T. Still University - BUSINESS - FIN
EXAM 1 SOLUTIONSFinance 34600 Investment Theory Professor Shane A. Corwin University of Notre Dame, London Centre Spring Semester 2008February 13, 2008INSTRUCTIONS: 1. 2. 3. 4. Provide an ID number and initial above if you would like your exam scores p
A.T. Still University - BUSINESS - FIN
EXAM 2 SOLUTIONSFinance 34600 Investment Theory Professor Shane A. Corwin University of Notre Dame, London Centre Spring Semester 2008 April 2, 2008INSTRUCTIONS: 1. You have 75 minutes to complete the exam. 2. The exam is worth a total of 100 points. 3.
A.T. Still University - BUSINESS - FIN
Finance 432 Investment Analysis and Management Review Notes for Final Exam 1. Chapter 17 Risk-adjusted returns: concepts and calculations The Sharpe Index = (rp -rF) / p The Jensen Index: p = rp - (rF + (rm - rF) p The Treynor Index = (rp -rF) / p Portfol
A.T. Still University - BUSINESS - FIN
FIN 432 Investment Analysis and Management Review Notes for Midterm Exam #1 Chapter 1 1. 2. 3. 4. 5. Investment vs. investments Real assets vs. financial assets Investment process Investment policy, asset allocation, security selection and analysis, portf
A.T. Still University - BUSINESS - FIN
FIN 432 Investment Analysis and Management Review Notes for Midterm Exam # 2 1. 2. 3. 4. 1. 2. 3. Chapter 5 Risk and return Holding period return Mean and standard deviation (ex ante vs. ex post) Asset allocation Chapters 6&amp;7 Portfolio construction with t
A.T. Still University - BUSINESS - FIN
Finance 432 Investment Analysis and Management Review Notes for Midterm Exam #3 Chapters 9&amp;10 1. 2. Bond Investing Characteristics of bonds Coupon rate and interest payment Maturity date; Call provision; Call premium and call price Face value; Zero coupon
A.T. Still University - BUSINESS - FIN
Practice Problems Midterm I 1. Multiple Choice This problem includes ten multiple-choice questions. Choose only one answer for each question. You do not have to explain why you have selected a particular one. If you feel that a question is ambiguous, feel
A.T. Still University - BUSINESS - FIN
Practice Problems Midterm I 1. Multiple Choice This problem includes ten multiple-choice questions. Choose only one answer for each question. You do not have to explain why you have selected a particular one. If you feel that a question is ambiguous, feel
A.T. Still University - BUSINESS - FIN
Practice Problems Midterm II 1. Multiple Choice (30 points: 3 points each) This problem includes ten multiple-choice questions. Choose only one answer for each question. You do not have to explain why you have selected a particular one. If you feel that a
A.T. Still University - BUSINESS - FIN
Practice Problems Midterm II 1. Multiple Choice (30 points: 3 points each) This problem includes ten multiple-choice questions. Choose only one answer for each question. You do not have to explain why you have selected a particular one. If you feel that a
A.T. Still University - BUSINESS - FIN
APPENDIX ATime Value of Money SOLUTIONS TO BRIEF EXERCISESBRIEF EXERCISE A-1 (a) Interest = p X i X n I = \$5,000 X .06 X 10 years I = \$3,000 Accumulated amount = \$5,000 + \$3,000 = \$8,000 (b) Future value factor for 10 periods at 6% is 1.79085 (from Tabl
A.T. Still University - BUSINESS - FIN
APPENDIX ATime Value of Money SOLUTIONS TO BRIEF EXERCISESBRIEF EXERCISE A-1 (a) Interest = p X i X n I = \$5,000 X .06 X 10 years I = \$3,000 Accumulated amount = \$5,000 + \$3,000 = \$8,000 (b) Future value factor for 10 periods at 6% is 1.79085 (from Tabl
A.T. Still University - BUSINESS - FIN
CHAPTER 1Managerial AccountingASSIGNMENT CLASSIFICATION TABLEStudy Objectives *1. Explain the distinguishing features of managerial accounting. Identify the three broad functions of management. Define the three classes of manufacturing costs. Distingui
A.T. Still University - BUSINESS - FIN
CHAPTER 1Managerial AccountingASSIGNMENT CLASSIFICATION TABLEBrief Exercises 1 A Problems B ProblemsStudy Objectives *1. Explain the distinguishing features of managerial accounting. Identify the three broad functions of management. Define the three c
A.T. Still University - BUSINESS - FIN
CHAPTER 2Job Order CostingASSIGNMENT CLASSIFICATION TABLEStudy Objectives 1. Explain the characteristics and purposes of cost accounting. Describe the flow of costs in a job order costing system. Explain the nature and importance of a job cost sheet. I
A.T. Still University - BUSINESS - FIN
CHAPTER 2Job Order CostingASSIGNMENT CLASSIFICATION TABLEBrief Exercises A Problems B ProblemsStudy Objectives 1. Explain the characteristics and purposes of cost accounting. Describe the flow of costs in a job order costing system. Explain the nature
A.T. Still University - BUSINESS - FIN
CHAPTER 4Activity-Based CostingASSIGNMENT CLASSIFICATION TABLEStudy Objectives *1. Questions Brief Exercises 1, 2 Exercises 1, 2, 3, 4, 5, 6, 12, 13 A Problems 1A, 3A, 4A, 5A B Problems 1B, 3B, 4B, 5BRecognize the difference 1, 2, 3, between tradition
A.T. Still University - BUSINESS - FIN
CHAPTER 4Activity-Based CostingASSIGNMENT CLASSIFICATION TABLEBrief Exercises 1, 2 A Problems 1A, 3A, 4A, 5A B Problems 1B, 3B, 4B, 5BStudy Objectives *1.QuestionsExercises 1, 2, 3, 4, 5, 6, 12, 13Recognize the difference 1, 2, 3, between tradition
A.T. Still University - BUSINESS - FIN
CHAPTER 5Cost-Volume-ProfitASSIGNMENT CLASSIFICATION TABLEStudy Objectives 1. Distinguish between variable and fixed costs. Explain the significance of the relevant range. Explain the concept of mixed costs. List the five components of cost-volume-prof
A.T. Still University - BUSINESS - FIN
CHAPTER 6Cost-Volume-Profit Analysis: Additional IssuesASSIGNMENT CLASSIFICATION TABLEStudy Objectives 1. Describe the essential features of a cost-volume-profit income statement. 2. Apply basic CVP concepts. Brief Questions Exercises 1, 2, 3, 4 1, 2,
A.T. Still University - BUSINESS - FIN
CHAPTER 6Cost-Volume-Profit Analysis: Additional IssuesASSIGNMENT CLASSIFICATION TABLEBrief Exercises 1, 2, 3, 4, 5, 6 A Problems 1A, 2A B Problems 1B, 2BStudy Objectives 1. Describe the essential features of a cost-volume-profit income statement. App
A.T. Still University - BUSINESS - FIN
CHAPTER 7Incremental AnalysisASSIGNMENT CLASSIFICATION TABLEStudy Objectives 1. Identify the steps in managements decisionmaking process. Describe the concept of incremental analysis. Identify the relevant costs in accepting an order at a special price
A.T. Still University - BUSINESS - FIN
CHAPTER 7Incremental AnalysisASSIGNMENT CLASSIFICATION TABLEBrief Exercises 1 A Problems B ProblemsStudy Objectives 1. Identify the steps in managements decisionmaking process. Describe the concept of incremental analysis. Identify the relevant costs
A.T. Still University - BUSINESS - FIN
CHAPTER 8PricingASSIGNMENT CLASSIFICATION TABLEBrief Exercises 1 A Problems B ProblemsStudy Objectives 1. Compute a target cost when the market determines a product price. 2. Compute a target selling price using cost-plus pricing. 3. Use time-and-mate
A.T. Still University - BUSINESS - FIN
CHAPTER 9Budgetary PlanningASSIGNMENT CLASSIFICATION TABLEBrief Exercises A Problems B ProblemsStudy Objectives 1. Indicate the benefits of budgeting. State the essentials of effective budgeting. Identify the budgets that comprise the master budget. D
A.T. Still University - BUSINESS - FIN
CHAPTER 10Budgetary Control and Responsibility AccountingASSIGNMENT CLASSIFICATION TABLEStudy Objectives 1. Describe the concept of budgetary control. 2. Evaluate the usefulness of static budget reports. 3. Explain the development of flexible budgets a
A.T. Still University - BUSINESS - FIN
CHAPTER 10Budgetary Control and Responsibility AccountingASSIGNMENT CLASSIFICATION TABLEBrief Exercises A Problems B ProblemsStudy Objectives 1. Describe the concept of budgetary control. 2. Evaluate the usefulness of static budget reports. 3. Explain
A.T. Still University - BUSINESS - FIN
CHAPTER 11Standard Costs and Balanced ScorecardASSIGNMENT CLASSIFICATION TABLEStudy Objectives 1. Distinguish between a standard and a budget. 2. Identify the advantages of standard costs. 3. Describe how companies set standards. 4. State the formulas
A.T. Still University - BUSINESS - FIN
CHAPTER 11Standard Costs and Balanced ScorecardASSIGNMENT CLASSIFICATION TABLEBrief Exercises 1 A Problems B ProblemsStudy Objectives 1. Distinguish between a standard and a budget. 2. Identify the advantages of standard costs. 3. Describe how compani
A.T. Still University - BUSINESS - FIN
CHAPTER 12Planning for Capital InvestmentsASSIGNMENT CLASSIFICATION TABLEBrief Exercises A Problems B ProblemsStudy Objectives 1. Discuss capital budgeting evaluation, and explain inputs used in capital budgeting. Describe the cash payback technique.
A.T. Still University - BUSINESS - FIN
CHAPTER 13Statement of Cash FlowsASSIGNMENT CLASSIFICATION TABLEStudy Objectives *1. Indicate the usefulness of the statement of cash flows. Distinguish among operating, investing, and financing activities. Prepare a statement of cash flows using the i
A.T. Still University - BUSINESS - FIN
CHAPTER 13Statement of Cash FlowsASSIGNMENT CLASSIFICATION TABLEBrief Exercises A Problems B ProblemsStudy Objectives *1. Indicate the usefulness of the statement of cash flows. Distinguish among operating, investing, and financing activities. Prepare
A.T. Still University - BUSINESS - FIN
CHAPTER 14Financial Statement Analysis: The Big PictureASSIGNMENT CLASSIFICATION TABLEStudy Objectives 1. 2. Questions Brief Exercises 1 2 Exercises ProblemsDiscuss the need for comparative analysis. 1, 2, 3, 5 Identify the tools of financial statemen
A.T. Still University - BUSINESS - FIN
CHAPTER 14Financial Statement Analysis: The Big PictureASSIGNMENT CLASSIFICATION TABLEBrief Exercises 1 2Study Objectives 1. 2. Discuss the need for comparative analysis. Identify the tools of financial statement analysis. Explain and apply horizontal
A.T. Still University - BUSINESS - FIN
C hapter 24 The Function and Creation of N egotiable Instrum e n t sTRUE/FALSE QUESTIONS A1. Anegotiableinstrumentservesasasubstituteforcash. ANSWER: T PAGE: 486 NAT:AACSBReflective AICPACriticalThinking A2. Onatradeacceptance,thedrawerisalsothepayee. AN
A.T. Still University - BUSINESS - FIN
Chapter 25 Transferability and Holder in Due CourseTRUE/FALSE QUESTIONS A1. UndertheUCC,atransferofrightsunderacontractisanegotiation. ANSWER: F PAGE: 504 NAT:AACSBReflective AICPALegal A2. TYPE: NAnegotiableinstrumentcanonlybetransferredbynegotiation.
A.T. Still University - BUSINESS - FIN
Chapter 26 Liability, Defenses, and DischargeTRUE/FALSE QUESTIONS A1. Asignaturemaybetyped. ANSWER: T PAGE: 523 NAT:AACSBReflective AICPALegal A2. Asignaturemaybehandwritten. ANSWER: T PAGE: 523 NAT:AACSBReflective AICPALegal A3. TYPE: = TYPE: =Signatur
A.T. Still University - BUSINESS - FIN
Chapter 31 Agency Formation and DutiesTRUE/FALSE QUESTIONS A1. A fiduciary relationship allows the parties to avoid obligations without liability. ANSWER: F PAGE: NAT:AACSBAnalytic A2. 638 AICPALegal TYPE: NAnofficerofacorporationcannotpossessthepowerto
A.T. Still University - BUSINESS - FIN
Chapter 32 Liability to Third Parties and TerminationTRUE/FALSE QUESTIONS A1. Expressauthorityisauthoritydeclaredinclear,direct,definiteterms. ANSWER: T PAGE: NAT:AACSBAnalytic A2. 653 AICPALegal TYPE: NAnagentsauthoritymustbeimpliedfortheagentsacttobin
A.T. Still University - BUSINESS - FIN
C hapter 35 Sole Proprietorships and FranchisesTRUE/FALSE QUESTIONS A1. Startingasoleproprietorshipiseasierandlesscostlythanstartingany otherformofbusiness. ANSWER: T PAGE: NAT:AACSBAnalytic A2. 724 AICPALegal TYPE: NInchoosingaformofbusinessorganizatio
A.T. Still University - BUSINESS - FIN
Chapter 36 Partnerships and Limited Liability PartnershipsTRUE/FALSE QUESTIONS A1. Anassociationcannotbeapartnershipwithoutanexpressagreement. ANSWER: F PAGE: NAT:AACSBAnalytic A2. 737 AICPALegal TYPE: NTheUniformCommercialCodegovernstheoperationofpartn
A.T. Still University - BUSINESS - FIN
C hapter 38 Corporations Formation and FinancingTRUE/FALSE QUESTIONS A1. Generally,thereisauniformbodyofnationalcorporatelaw. ANSWER: F PAGE: NAT:AACSBAnalytic A2. 773 AICPALegal TYPE: NAnychangeinshareholdersaffectsthecontinuedexistenceofacorporation.
A.T. Still University - BUSINESS - FIN
C hapter 39 CorporationsDirectors, Officers, and ShareholdersTRUE/FALSE QUESTIONS A1. Corporateofficersgoverneverycorporation. ANSWER: F PAGE: 796 NAT:AACSBReflective AICPACriticalThinking A2. TYPE: =Adirectoriselectedbyamajorityvoteoftheothermembersoft
A.T. Still University - BUSINESS - FIN
Chapter 41 Corporations Securities Law and Corporate GovernanceTRUE/FALSE QUESTIONS A1. The least common forms of securities are stocks and bonds issued by corporations. ANSWER: F PAGE: NAT:AACSBAnalytic A2. 837 AICPALegal TYPE: =Aregistrationstatementm
A.T. Still University - BUSINESS - FIN
C hapter 46 Antitrust LawTRUE/FALSE QUESTIONS A1. Thebasicpurposeofantitrustlawistoregulateeconomiccompetition. ANSWER: T PAGE: 938 NAT:AACSBReflective AICPACriticalThinking A2. TYPE: +Toviolateantitrustlaw,anactivitymustinvolvetwoormorepersons. ANSWER:
A.T. Still University - BUSINESS - FIN
C hapter 47 Perso n al Property and Bailme nt sTRUE/FALSE QUESTIONS A1. Tangible personalpropertyhasphysicalsubstance. ANSWER: T PAGE: 960 NAT:AACSBReflective AICPACriticalThinking A2. TYPE: =Personal property may become real property by attaching it to
University of Mumbai - STATISTC - 111
University of Texas - MATHEMATIC - 56340
University of Texas - MATHEMATIC - 56340
University of Texas - MATHEMATIC - 56340
University of Texas - MATHEMATIC - 56340