E2 FIN 135 Exam 1 Outline

# E2 FIN 135 Exam 1 Outline - FIN 135 Investments Exam #1...

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FIN 135 – Investments Exam #1 Outline Exam #1 date: Thursday, March 6 in class Formulas will be provided. A sample formula sheet is posted online. You must bring : General Purpose NCS® Answer Sheet form no. 4521. (It’s 8.5 x 11 and white with blue writing) Be able to do all of your homework problems unless otherwise stated below. Study the notes. Below are some things to focus on: Chapter 1: - Know how to calculate dollar and percent returns. - Know how to calculate average annual return, using both arithmetic and geometric averaging. - Know the order of which the 5 asset classes have the highest average historical returns and highest risk. You don’t have to know levels, just order. - Define risk-free rate and risk premium. - Understand normal distribution properties: +/- 1 sigma means 68%, 2 sigma means 95%, 3 sigma means 99%. Use as in homework. - Know the 2 “lessons” of the chapter. (i.e., risk vs. return) - Be able to calculate variance/standard deviation. Know conceptually what these measure. Chapter 2:

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## This note was uploaded on 04/17/2008 for the course FIN 135 taught by Professor Travis during the Spring '08 term at CSU Sacramento.

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E2 FIN 135 Exam 1 Outline - FIN 135 Investments Exam #1...

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