FIN 3103 HW Set 1 Name: AAZNx/gr \LE,\,
1. An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 9.75%
yields, what must municipals offer for the investor to prefer
Three Key Ideas of This Course, So Far
1. Combining securities reduces the risk of the overall position
I
Diversify
I
Benefits of diversification
I
Depend on how assets co-move together.
2. Risk/retur
FIN 3503 - Midterm Exam 2 Study Guide
Guide only Exam will be over all lecture, quiz, and homework material
Chapter 5: Risk and Return (13 questions)
Arithmetic vs. Geometric vs. Dollar Weighted Retu
Name: ie%_
FIN 3103 Investments
Quiz 2
Answer all questions. Do not round intermediate calculations.
' 1. Westbrook Investments just paid a (annual) dividend of $1, which is expected to grow at 20% fo
FIN 3503 Investments Fall 2016 Exam I Study Guide
Disclaimer: The exam material can be comprised of anything covered in class. This is only a tool to aid studying for the exam.
Chapter 1: Background
FIN 3503 - Quiz 3 NAME: \LQ 3 I
In the Last 12 months:
0 The market has returned 9% Rm ;: rm" p: :_ 0\ - 3 -: 6'73
0 The 3-month T-bill yielded 3%
0 Small stocks returned 10% _ C _ V m 0 ., \ 2 2 Z .7
Options Markets: Introduction
Problem 1: a. What are the payoffs and net profits to an investor who holds a IBM call
option with exercise price $100? Assume the stock price at expiration is $110? What
FIN 3503: INVESTMENTS
Test III
Practice Test
Question 1.
(12 points)
(a) (4 points) You have all your savings in an index fund that tracks the Russell 3000,
however, you are nervous about a potential
Homework #3
DUE: The assignment is due at the beginning of class on Wed Dec 2.
The homework will be graded mostly based on completeness (refer to the syllabus for details).
You may work with other stu
Solution Key Practice Test for Test III
Question #1
(a) To hedge against a potential market crash you buy a put. Now if that market crashes the
losses on the Russell 3000 are offset by the put you bou
Question 1.
(a)
You have to draw the profit of the combined strategy (writing both the calls).
There are many ways you can do this. It may be helpful to set it up like this (but you dont have
to do al
Test 2 Study Guide
There are three big ideas underlying all tools and techniques that we use in
class:
1. Combining securities reduces the risk of the position. This is the basic idea underlying
diver
UNIVERSITY OF OKLAHOMA
Price College of Business
INVESTMENTS
MIDTERM II EXAM (Practice 1)
NAME AND
SECTION NUMBER BELOW
Instructions
Answer each of the problems below in the space provided. You will n
Midterm II Practice Exam 2 - 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 a
Formula(Sheet(
S
2 = p(s)[r (s) E (r )]2 ! Variance of Asset's Return
s =1
1 T
2
2 =
(rt m) !
T 1 t=1
E (r ) = p( s )r ( s ) ! Expected Return (Mean)
1 T
m = rt !
T t =1
cov(rX , rY ) = p(s )(rX (s
Statistics Review
Investments
,
Investments
1
A Random Variable
The holding period return of a security:
rt+1 =
HPR =
I
I
I
I
Pt+1 Pt + Dt+1
Pt
ending price - begining price + (dividend or interest)
b
No. 2
This is a case of annuity due since all CFs occur the beginning of each period.
FV of the annuity due
Alternative, you can use the timeline
period
0
CF
10000
FV of each CF
($21,589.25)
FV of all
Fall 2016
Econ 3133
Germain Pichop
Name: _
Problem Set #2
Due: October 31st
Please, print clearly if you want your assignment to be graded
1) Looking at the illustration above,
a. which years represen
FIN 3503 - Quiz 3
In the Last 12 months:
0 The market has returned 6% 5 ( - r a e h \ 15
o The 3month Tbill yielded 1%
o Small stocks returned 5% Z F3 _ r : 6': 7 ; ,3 Z
0 Large stocks returned 7%
0
FIN 3103 - Quiz 3
NAME:_
In the Last 12 months:
The market has returned 11%
The 3-month T-bill yielded 1%
Small stocks returned 15%
Large stocks returned 10%
Value firms returned 12%
Growth firms retu
Securities Markets
Chapter 3
Key Points
Primary Markets
Secondary Markets
Dealer vs. Auction Markets
Buying on Margin
Short Selling
Regulation
2
Primary Market
Market for new issues of securities
Statistics Review
1
Holding Period Return
PS = Sale price
PB = Buy price
CF = Cash flow during holding period
Dividends, coupons, etc.
2
Holding Period Return
Since
we dont know what the Cash Flow
Capital Asset Pricing
Model (CAPM)
Chapter 7
Key Points
CAPM
Relates the return of a security to its market risk
Implications
Passive Investing is efficient
Expected excess return will be proportio
Macroeconomic and
Industry Analysis
Chapter 12
Key Points
Macroeconomic Policy
Full employment vs. Inflationary Pressures
Fiscal Policy
Taxation vs. government spending
Monetary Policy
Control of t
FIN 3503 Investments Spring 2017 Exam I Study Guide
Disclaimer: The exam material can be comprised of anything covered in class. This is only a tool to aid studying for the exam.
Chapter 1: Backgroun
Lecture Outline: Portfolio Theory
Disclaimer: This is only a lecture outline. It is not meant to be comprehensive or standalone decipherable. The actual in-class lectures explain the content, results,
Derivatives
I
Keep in mind two big pictures:
1. What they are used for?
I
I
Hedge some underlying risk
Speculate on your beliefs or information
2. How to price derivatives
I
I
application
of
'
'
no
.
Lecture Outline: Overview of Securities Markets
Disclaimer: This is only a lecture outline. It is not meant to be comprehensive or standalone decipherable. The actual in-class lectures explain the con