FRL315_StudyGuide_Midterm2_Spring2010_studentCopy

FRL315_StudyGuide_Midterm2_Spring2010_studentCopy - FRL 315...

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FRL 315 Spring 2010 Midterm2 Study Guide Chapter 8 – Bond Valuation 1. Know how to calculate bond price and the basics. 2. Know the relationship between bond price, coupon rate and yield. 3. What is Bond price elasticity? How to compute and interpret it? 4. What is duration, modified duration? How to compute and interpret? 5. How to compute portfolio duration? 6. What are Matching strategy, Laddered strategy, Barbell strategy and Interest Rate strategy? Chapter 11 – Stock Valuation and Risk 1. Know Price-earnings method for stock valuation? 2. Know Dividend Discount model. 3. Know Adjusted Dividend Discount Model. 4. What is Arbitrage pricing model? 5. Using CAMP to determine the required rate of return of stock. SLOPE is beta; market risk premium; 6. How to measure stock risk? How to calculate holding period return, volatility of stock/stock portfolio. What does beta measure? How to compute the beta of a portfolio? 7.
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FRL315_StudyGuide_Midterm2_Spring2010_studentCopy - FRL 315...

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