UNIVERSITY OF OKLAHOMA
Price College of Business
FIN 3103: INVESTMENTS
Spring 2013
MIDTERM I EXAM
WRITE YOUR NAME BELOW
Instructions
Answer each of the problems below in the space provided. You will need only your pens/pencils and
your calculator; all oth
Midterm I Main Exam - Spring 2014
Solution Key
Question 1 - (12 points)
a) Portfolio theory is still relevant. We use the CAPM to get better estimates of inputs (means,
variances and covariances) so we can better apply portfolio theory. However, portfolio
Solution Key
Homework #1
Problem 1. Suppose that you sell short 500 shares of Intel, currently selling for $40 per share,
and you give your broker $15,000 to establish your margin account. Assume Intel pays no
dividends.
a) If you earn no interest on the
Midterm I Main Exam - Spring 2012
Solution Key
Question 1 - (12 points)
Required rate of return = risk premium + risk-free rate = 10% +3% = 13%
Use the holding period return (HPR) to find the price you are willing to pay:
Problem 2 - (18 points)
a)
The in
Final Exam Solution Key FIN 3103 Spring 2014
Problem 1 - (16 points)
a) (3 points) Use the CAPM equation to find the expected return on each stock:
( ) = + [( ) ] = 0.03 + 2(0.15 0.03) = 0.27 27%
( ) = 0.03 + 0.7(0.15 0.03) = 0.114 11.4%
b) (2 points) Use
Final Exam Solution Key FIN 3103 Spring 2013
Question 1 - (18 points)
(a)
(b) We pick the stock with the best risk-return tradeoff,
Therefore we prefer Groggy Brothers as it offers the highest Sharpe Ratio.
(c) No, you need to know the covariances (or cor
UNIVERSITY OF OKLAHOMA
Price College of Business
FIN 3503: INVESTMENTS
Spring 2015
MIDTERM I EXAM
WRITE YOUR NAME BELOW
SECTION NUMBER
(001 9 am; 002 10:30 am; 003 1:30 pm; 004 3 pm)
Instructions
There are 7 questions and 100 points; there is also an extr
Solution Key Final Exam 2012
#1
(a) Pick the one that gives you the highest utility.
(
(
)(
)(
)
)
The stock fund gives you higher utility so you select the stock fund.
(b) You have to decide how to allocate your money between the risky asset (the stock f
UNIVERSITY OF OKLAHOMA
Price College of Business
FIN 4103: INVESTMENTS
Spring 2012
FINAL EXAM
WRITE YOUR NAME BELOW
Instructions
Answer each of the problems below in the space provided. You will need only your
pens/pencils and your calculator; all other m
Midterm I Makeup Exam - Spring 2015
Solution Key
Question 1 - (22 points)
a)
You buy Fish Oil stock for $23 on 1/12 and sell for $18 on 1/15. Your return is,
b)
You borrow Fish Oil stock on 1/12, sell it in the market for $23 and put up $17.25 ($25*0.75)
Midterm I Main Exam - Spring 2013
Solution Key
Question 1 - (14 points)
(a) Required rate of return = 15 %
Use the holding period return (HPR) to find the price it must sell for at auction. The
maintenance is a negative dividend:
The car must sell for a l
UNIVERSITY OF OKLAHOMA
Price College of Business
FIN 4103: INVESTMENTS
Spring 2012
MIDTERM I EXAM
WRITE YOUR NAME BELOW
Instructions
Answer each of the problems below in the space provided. You will need only your pens/pencils and
your calculator; all oth
Midterm I Main Exam - Spring 2014
Solution Key
Question 1 - (20 points)
a) Use the margin formula. Your assets are the 1800 you put up as margin plus the sales proceeds
of 2500.
=
4300 2500
=
= 0.72
2500
The initial margin is 72%.
b) If the price goes
UNIVERSITY OF OKLAHOMA
Price College of Business
FIN 3103: INVESTMENTS
Spring 2014
MIDTERM I EXAM
WRITE YOUR NAME AND SECTION NUMBER BELOW
Instructions
There are 7 questions and 100 points; there is also an extra credit question worth 5 points. Answer
eac
Midterm I Main Exam - Spring 2013
Solution Key
Question 1 - (14 points)
[(a) and (b) are very similar to CAPM practice problems. (c) is straight from the CAPM slides]
(a) Not possible. Both A and B are off the SML.
To show this, use the CAPM equation
( )
Midterm II Solution Key
Main Exam
Question 1 - (12 points)
(a) Possible. The reward-to-variability ratio for Portfolio A is worse than that of the market.
This scenario is possible as the CAPM predicts that the market is the most efficient
portfolio. Usin
UNIVERSITY OF OKLAHOMA
Price College of Business
FIN 4103: INVESTMENTS
Spring 2012
MIDTERM II EXAM
WRITE YOUR NAME BELOW
Instructions
Answer each of the problems below in the space provided. You will need only your pens/pencils and
your calculator; all ot
UNIVERSITY OF OKLAHOMA
Price College of Business
FIN 3103: INVESTMENTS
Spring 2014
FINAL EXAM
WRITE YOUR NAME BELOW
Instructions
Answer each of the problems below in the space provided. You will need only your
pens/pencils and your calculator; all other m
UNIVERSITY OF OKLAHOMA
Price College of Business
FIN 3103: INVESTMENTS
Spring 2013
FINAL EXAM
WRITE YOUR NAME BELOW
Instructions
Answer each of the problems below in the space provided. You will need only your
pens/pencils and your calculator; all other m
Trading Basics
Important Market Functions
Price discovery
The process of search for the price that produces
two-sided order flow (supply meets demand)
Risk sharing
Traders who wish to get rid of risk meet traders
who wish to take risk for a reward
Who
Portfolio Allocation
Investor Preferences
Define mean variance preferences
Investor prefers higher expected payoff, all else equal
Given expected payoff, investor prefers smaller degree of uncertainty
regarding payoff. That is, investor is risk averse
Bond Pricing and Risks
Example of a Bond
Consider a U.S. government bond listed as 6 3/8 of December
2017.
The Par Value of the bond is $1,000.
Coupon payments are made semi-annually (June 30 and
December 31 for this particular bond).
Since the coupon
Equity Valuation
Back to Intrinsic Value
The central purpose of security analysis is to
determine the intrinsic value of the firm
Rough approaches:
Book value
Liquidation value
Tobins Q = market value / replacement value
Equity valuation models
Mul
Profitability:
Gross profit margin=gross prof/sales
Op prof margin=EBIT/sales
Net prof margin=net income/sales
Earnings per share=net income/# shares cmn stk outstand
Return on TA=net income/TA
Return on common equity=net income/stkholdrs equity
Market:
M
Michael McMullin
MGT 3153
26 January 2017
Sports teams are far more important and meaningful to their community than you would
logically think when considering they are just games. It is evident that Sports may be one of the best
platforms to accomplish p
Insert a recent photo of yourself here:
Preferred Name:
First Name (if different):
Last Name:
Year in School:
Hometown:
Major(s):
Minor(s):
What do you hope to gain
from this class?
What suggestions do you
have for me to make this
class worthwhile (if any
Chapter 13:
Larger banks have, on average, recently reduced their
dependence on loans relative to smaller banks.
The largest single loan category for all banks is: real
estate loans.
Commercial and industrial loans represent the
second highest concentr
Name : EY
Homework Set #3
FIN 3503/5103002:[Investments
DUE: November 9, 016
1. You are an analyst for a hedge fund manager. Your boss needs you
to prepare a p rtfolio report for one of the hedge fund's clients.
You take a look at the clients investment p