Investments Study Guide (Exam 1)
Chapter 1 & Chapter 2: Intro to Investments
Real Assets Assets used to produce goods/services
Ex: Property, plant, equipment, knowledge
Financial assets claims on real assets or the income generated by them
Ex: Stocks, bon

Chapter 1 Course Introduction
Investments: Background and Issues
BF 4221: Investments
Prof. Xiaoji Lin
Spring 2015
BF 4221: Investments Prof. Xiaoji Lin
Chapter 1 Course Introduction Investments: Background and I
Course Introduction
You Are on TV
You are

Chapter 8
The EMH
BF 4221
Spring 2016
8.1 Random Walks and the
Efficient Market
Hypothesis
8-2
Efficient Market Hypothesis (EMH)
Do security prices accurately reflect information?
Informational Efficiency
price changes consistently predictable?
Are
_
A

Homework 1
BF4221, Spring 2016
January 13, 2016
Instructions: Work in a group of 1 4 people. Each group hands in one copy of their
answers. Be brief and to the point, but be sure to fully explain your logic.
Due Date: January 25, 2016
Problem Sets
1. Iden

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.517443
R Square 0.267747
Adjusted R 0.263633
Standard E 0.080497
Observatio
180
df
Regressio
Residual
Total
SS
MS
F Significance F
1 0.421735 0.421735 65.08546 1.0E-013
178 1.153388 0.00648
179 1.575122
Co

Chapter 7 CAPM & APT
Section I: CAPM & Multifactor Models
BF 4221 Investments
Spring 2016
BF 4221 Investments
Chapter 7 CAPM & APT
The CAPM & Multifactor Models
Review and Clarification
In the last few lectures we have considered how an investor
should al

Chapter 7 CAPM & APT
Section II: Testing the CAPM
BF 4221 Investments
Spring 2016
BF 4221 Investments
Chapter 7 CAPM & APT
Testing the CAPM: Background
CAPM is a model
It is useful because it tells us what expected returns should
be.
We want test whether

Chapter 7 CAPM & APT
Section III: Value and Size
BF 4221 Investments
Spring 2016
BF 4221 Investments
Chapter 7 CAPM & APT
Introduction
So far in this class we have developed skills and tools.
The present value formula
Market efficiency
Mean variance analy

Homework 5
BF4221, Spring 2016
March 7, 2016
Instructions: Work in a group of 1 4 people. Each group hands in one typed copy of
their answers. Be brief and to the point, but be sure to fully explain your logic. Do not print
data, entire spreadsheets, or p

Investments 4221
Quiz #1
Name :
1
1. Public companies in the United States are required to report
earnings how many times per year?
A. semi-annually
B. mont

BUSFIN 4211 Corporate Finance
SP 2016
Written by Mike Dong
Homework 2
(Due Feb 10th in class)
For each problem, find one answer. If you think the correct answer is not listed, write down one you think
is right. This is not a group assignment. You are allo

Investment Decision Rules
& Fundamentals of Capital Budgeting
Corporate Finance 4211
Professor Sergey Chernenko
The Ohio State University
Fisher College of Business
January 14, 2016
Professor Sergey Chernenko (OSU)
Investment Decision Rules & Fundamentals

3. (a)
rW rf is dependent variable
rM rf is independent variable
( c) We cannot reject the hypothesis in CAPM because P value more than 0.05
4. (b)
We reject reject the hypothesis in CAPM because P value less than 0.05
5. Yes. L portfolio has higher risk

Chapter 5 Risk and Return
Section III: Value at Risk
BF 4221 Investments
Spring 2015
BF 4221 Investments
Chapter 5 Risk and Return Section III: Value at Risk
Value at Risk
Value-at-Risk (VaR)
Definition: VaR is the loss level at time T, that is expected
t

Chapter 5 Risk and Return
Section I: Rates of Return
BF 4221 Investments
Spring 2015
BF 4221 Investments
Chapter 5 Risk and Return
Rate of Returns
Rate of Returns
Become a wise investor!
You need to know.
The historical returns on various important types

Chapter 5 Risk and Return
Section II: Risk and Risk Premiums
BF 4221 Investments
Spring 2015
BF 4221 Investments
Chapter 5 Risk and Return
Risk and Return
Historical Returns
Nominal Geometric Average Returns for US Securities
Period
1802 - 1870
1871 - 192

Homework 2
BF 4221, Spring 2015
January 26, 2015
Instructions: Work in a group of 1 4 people. Each group hands in one copy of their
answers. Be brief and to the point, but be sure to fully explain your logic.
Due Date: Feb 2, 2015
Problem Sets
1. If you t

Homework 3
BF4221, Spring 2015
February 2, 2015
Instructions: Work in a group of 1 4 people. Each group hands in one copy of their
answers. Be brief and to the point, but be sure to fully explain your logic.
Due Date: February 9
Problem Sets
1. Suppose yo

Homework 1
BF4220, Spring 2015
January 14, 2015
Instructions: Work in a group of 1 4 people. Each group hands in one copy of their
answers. Be brief and to the point, but be sure to fully explain your logic.
Due Date: January 26, 2015
Problem Sets
1. Iden

Homework 4
BF 4221, Spring 2015
February 9, 2015
Instructions: Work in a group of 1 4 people. Each group hands in one copy of their
answers. Be brief and to the point, but be sure to fully explain your logic.
Due Date: Feb 16, 2015
Problem Sets
1. You are

Homework 5
BF 4221, Spring 2015
February 19, 2015
Instructions: Work in a group of 1 4 people. Each group hands in one copy of their
answers. Be brief and to the point, but be sure to fully explain your logic.
Due Date: Feb 25, 2015
Problem Sets
1. CAPM
(

Bond Certificate- States the terms of a bond as well as the amounts and dates of all payments.
Maturity Date- The final repayment date of the bond
Term- The time remaining until the final repayment date of a bond
Face value/par value/ principal amount- T

Investments 4221 Class Notes:
1/13/16
Money Market fund/instrument:
Less than 1 year maturity
Very Liquid and easily converted into cash w/ 0 or very minimal loss of capital
T-Bills:
Example of a Discount Security
Zero Coupon Bonds
Priced less than the fa

To: Students in BusFin 4211
From: Professor Sergey Chernenko
Date: January 28, 2016
Re: Instructions for the Capital Budgeting project
Your task is to build a DCF model of the decision to open a new XXX store. At the
end of class, upload the Excel spreads

Homework 2
BF 4221, Spring 2016
January 25, 2016
Instructions: Work in a group of 1 4 people. Each group hands in one copy of their
answers. Be brief and to the point, but be sure to fully explain your logic.
Due Date: Feb 1, 2016
Problem Sets
1. If you t

Homework 3
BF4221, Spring 2016
February 1, 2016
Instructions: Work in a group of 1 4 people. Each group hands in one copy of their
answers. Be brief and to the point, but be sure to fully explain your logic.
Due Date: February 8
Problem Sets
1. Suppose yo

Sample Quiz 1: Module 1
(BUSFIN 4221: Investments)
Fall 2016
Student Name:
OSU Last Name.#:
Do not turn this page until instructed to do so.
You have 20 minutes to answer the five questions in your quiz.
Each question has one and only one correct answer

Chapter 6
1. So long as the correlation coefficient is below 1.0, the portfolio will benefit from
diversification because returns on component securities will not move in perfect lockstep.
The portfolio standard deviation will be less than a weighted aver

Chapter 17
Futures/Forward Markets &
Risk Management
Futures vs. Forwards
Futures Contract - An agreement, executed on
an exchange, to sell or buy a specific amount of a
commodity or security at a specific price and time.
-Unless the contract is sold to a

Chapter 12
Macroeconomic and Industry Analysis
Global Economic Indicators
2015
March
Macroeconomic and Industry Analysis
Global Economic Indicators September
2014
Global Economic Indicators October
2013
Top Down
Big picture investment approach
Look at Eco

International Investing
Chapter 19
International Investing
The Goal -> To achieve the highest risk
adjusted return after taxes
International Investing:
Possible Higher Returns (Return enhancement)
Diversification (Risk reduction)
Different Risks
Globa

Overview
Passive Funds: Index Funds vs ETFs
(BUSFIN 4221 - Investments)
Andrei S. Gonalves1
1 Finance Department
The Ohio State University
Fall 2016
Overview
Market Share of Passive Funds
1
Overview
Market Share of Passive Funds by Type
2
Overview
Assets

Sample Quiz 2: Module 2
(BUSFIN 4221: Investments)
Fall 2016
Student Name:
OSU Last Name.#:
Do not turn this page until instructed to do so.
You have 20 minutes to answer the five questions in your quiz.
Each question has one and only one correct answer