Homework #4
Course: Finance 441
Term: Spring 2014
Instructions: Please complete the assignment on another piece of paper and show your work wherever
possible. You may handwrite or type your response, but if you choose to handwrite it make sure it is
legib
Homework #2
Course: Finance 3303
Term: Fall 2014
Instructions: Please complete the assignment on another piece of paper and show your work wherever
possible. You may handwrite or type your response, but if you choose to handwrite it make sure it is
legibl
Chapter 1
P1.
A) real
B) financial
C) financial
D) real
E) real
F)financial
P2.
APR=20%, quarterly compounding, EAR=(1+(.2/4)4-1=21.55%
APR=19.5%, daily compounding, EAR=(1+(.195/365)365-1=21.52%
A credit card with 19.5% APR with daily compounding is bett
Homework #3
Course: Finance 3303
Term: Fall 2014
Instructions: Please complete the assignment on another piece of paper and show your work wherever
possible. You may handwrite or type your response, but if you choose to handwrite it make sure it is
legibl
Chapter 13
P1) Remarkable Deals Co. has been performing above average and its price is at $55. RD paid
dividends of $2.50 last year. RDs beta is 1.5, the expected rate on the market is 12% and the
risk free rate is 1.5%.
a)You expect the companys dividend
Homework #1
Course: Finance 3303
Term: Fall 2014
Instructions: Please complete the assignment on another piece of paper and show your work wherever
possible. You may handwrite or type your response, but if you choose to handwrite it make sure it is
legibl
For todays Exam, your ultimate goal is to advise Gerard, the owner of Bobs Bike Shop, whether he should invest in new,
high-tech, tungsten inert gas (TIG) frame welding machinery for his mountain bike building business. You must also answer
several questi
Practice problems with solutions
Chapter 13
1. A company pays D1=$3, D2=$2, D3=$0, and D4=$1.5. Starting the 5th year the
companys dividend is expected to grow by 2% each year, indefinitely (e.g. D5=1.5*1.02
= $1.53, etc.). If the cost of equity capital f
Page 1 of 5 Homework #1 Course: Finance 3303 Term: Spring 2016 Instructions: Please complete the
assignment on another piece of paper and show your work wherever possible. You may handwrite or
type your response, but if you choose to handwrite it make sur
WASHINGTON UNIVERSITY IN ST. LOUIS
OLIN BUSINESS SCHOOL
Course: Finance 441
Term: Spring 2014
Professor: Felipe Cortes
Exam Grade
Section 1:_
Section 2:_
Section 3:_
Section 4:_
FINAL EXAM
Time: 120 minutes
of 20
of 30
of 30
of 20
Total:_of 100
INSTRUCTIO
FIN 3301 Final Exam
Sec. _
Name:_
Greetings!
For todays consultative banker project, your ultimate goal is to advise Gerard, the CEO of Bobs Bike
Shop, on the intrinsic value of his company. You must also answer several questions relating to finance and
y
Formula sheet, midterm
Statistics from scenario analysis
E (r ) = P( s)r ( s)
s
= P( s)[r ( s ) E (r )]
s
2
2
cov(r1 , r2 ) = P ( s )[r1 ( s ) E (r1 )][r2 ( s ) E (r2 )]
s
Corr1,2 = 1,2 = cov( r1 , r2 )
1 2
Risky portfolio
n
E ( rp ) = wi E ( ri )
i =1
CASH BUDGET for HAMPTON MACHINE TOOL(000 $) extended Repayment with dividends
September
October
November
December
January
Receipts:
A/R Collection(assumes 30-day;Oct& Nov.
less advances of $840 and $726, respectively)
Bank Loan
Total Cash Inflow
$684.00
$
Homework 2 solutions
Homework from Chapter 5
P1) The stock of Buyer Behold Inc. sells for 40$ a share. Its likely dividend payout and end of
year price depends on the state of the economy by the end of the year as follows:
Economic condition
Dividend
Stoc
WASHINGTON UNIVERSITY IN ST. LOUIS
OLIN BUSINESS SCHOOL
Course: Finance 441
Term: Spring 2014
Professor: Felipe Cortes
MIDTERM EXAM
Exam Grade
Section 1:_
Section 2:_
Section 3:_
Section 4:_
Time: 80 minutes
of 35
of 20
of 25
of 25
Total:_of 100
INSTRUCTI
Lecture 16:
Market Efficiency
40
Importance
Really important and fascinating topic.
Simple question: Can you consistently beat the
market on a RISK ADJUSTED BASIS?
Why do we care?
A useful revelation.
http:/www.youtube.com/watch?v=dsrOXJwGwtk
(Watch f
FIN 3303 Report Guidelines
DUE DATE: 12/8
Maximum 15 pages TOTAL, Times New Roman, 12 pts, 1.5 space.
The outline of the Report should include:
Introduction: Executive Summary of your fund where you include the most relevant
characteristics of your invest
Group Presentation
Guidelines
Objective
First and foremost, keep in mind that the main objective of the presentation is to PITCH your
investment strategy.
That is, you should do your best to convince us that your investment strategy IS the best
option!
Ot
Step A:
Type data into Excel
return vector, r
i
Stock i
A
B
C
covariance
i
7.0%
6.0%
10.0%
0.3
0.19
0.16
A
B
C
Correlation Matrix
1
0.0954
0.0954
1
0.0145
0.15
A
B
Risk-Free Rate
0%
Note: since the risk free rate is 0%, then the return is also the excess
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.8491819979
R Square
0.7211100655
Adjusted R Square
0.7155322668
Standard Error
0.0062560642
Observations
52
ANOVA
df
Regression
Residual
Total
Intercept
X Variable 1
SS
MS
F
Significance F
1 0.00506 0.0050
Lecture 3
Creating knowledgeInspiring individualsTransforming business
Outline
Institutional Details (continued)
Types of Investment Companies
Review of Risk and Return
Bond Trading
Most equities are traded on exchanges
In contrast, most bond trading
NORTHESATERN UNIVERSITY
DAMORE-MCKIM SCHOOL OF BUSINESS
Course: Finance 3303
Term: Fall 2014
Professor: Felipe Cortes
MIDTERM EXAM
Exam Grade
Section 1:_
Section 2:_
Section 3:_
Section 4:_
Time: 100 minutes
of 30
of 25
of 25
of 20
Total:_of 100
INSTRUCTI
News Presentation
FIN 3303
Guidelines
Very short presentation:
No more than 5 minutes
Each presentation should include at least two relevant financial
news.
Each presentation should:
Provide a brief description of the news
Explain the implications i
FIN 3303
MarketWatch.com Tutorial
Rules and Guidelines:
Go to:
www.marketwatch.com/game/fin3303-fall2014
When you register please remember to include your section number right
next to your group number.
If you are in Group 3, Section 2 your name should
Chapter 3
Investment Information and Securities Transactions
1. a.
Cost of research:
Five hours at $20 per hour
$100
Research data
75
Total
$175
b. Increase in expected return:
New return of 10% Current return of 8% 2% increase
$10,000 investment 0.02 inc
Chapter 2- Asset Classes and Financial Instruments
Money market- includes short term, highly liquid, and relatively low risk debt instruments
Treasury bills- short-term government securities issued at a discount from face value and returning the face
valu
Chapter 4- Mutual Funds and Other Investment Companies
Investment companies- financial intermediaries that invest the funds of individual investors in securities or other
assets
1. record keeping and administration
2. diversification and divisibility
3. p
Chapter 6- Efficient Diversification
Market risk, systematic risk, nondiversifiable risk- risk factors common to the whole
economy
Unique risk, firm-specific risk, nonsystematic risk, diversifiable risk- risk that can be
eliminated by diversification
Allo
Chapter 5- Risk and Return
Rates of Return
Holding-period return- rate of return over a given investment period
HPR= (ending price-beginning price+cash dividend)/beginning price
Arithmetic average- the sum of returns in each period divided by the number o
Chapter 18- Portfolio Performance Evaluation
Passive Management- holding a well-diversified portfolio without attempting to search out
security mispricing
Cash- shorthand for virtually risk-free money market securities
Active Management- attempts to achie