study guide exam2 - Finance 300 Exam#2 Study Guide DISCLAIMER This does not act as a total solution for the exam This is a guide to help direct you in

study guide exam2 - Finance 300 Exam#2 Study Guide...

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Finance 300 Exam #2 Study Guide DISCLAIMER: This does not act as a total solution for the exam. This is a guide to help direct you in your studying not to tell you everything that will be on the exam. Your biggest resource is WileyPlus. By going under the Read, Study, Practice tab you will find many resources explaining the concepts presented in the textbook. Good luck! First off, learn how to use your calculator. Do you know how to: - Find the present value of a lump sum, multiple cash flows, and annuities? - What is the difference between future value and present value? What do the formulas mean? - What is an annuity? Annuity due? - What is perpetuity? What would be a real life example of one? On Chapter 7, Risk and Return, you do not need to know how to calculate the variance and standard deviation. You do need to know what these are and the correlation between these functions. Such as: - How are risk and return correlated? - How do you calculate the expected return? - Why are these statistical formulations related to finance? How are they important?
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