Study Guide-Exam 2 - provided). 5. The following formulas...

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Study Guide for Exam 2 1. Exam 2 covers chapters 7-11. 2. The exam consists of 18-20 multiple-choice questions in Part I and 4 problems in Part II. 3. There are concept-type and problem-type questions among the multiple-choice questions. 4. For problems in Part II, focus on the problems we worked out in class. For example, #16 and #17 in ch7; #14 in ch8; #13 in ch9; and most importantly, the project analysis handout we worked through (almost, but the solutions are
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Unformatted text preview: provided). 5. The following formulas are provided: Fisher effect: (1 + R) = (1 + r)(1 + h) Fisher effect: R ≈ r + h (approximation) % change in bond price: % 100 % 1 1 2 × − = Δ V V V Constant Growth Model: Total return: g-R D g-R g) 1 ( D P 1 = + = yield gains capital yield dividend g P D R 1 + = + = g R g D t − + = = + ) 1 ( g-R D P 1 t t...
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This note was uploaded on 04/25/2010 for the course IE 654 taught by Professor Smith during the Spring '10 term at 카이스트, 한국과학기술원.

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