Solution to Midterm Exam I . m
Winter 2012
Econ 132A Prof. A.Sohrabian
Midterm Exam has two parts. The first part consists of 4 questions, 10 points for question 1, and 20
points for questions 2-4. The second part consists of 20 multiple choice questions,
Econ 132A Solution to Midterm i A. Sohrabian
Winter 2013
1. Margin Short m Equity/Liabiiéties : (Assets - LiabilitiesVVaiue of Stock Owed
0.30 = {300(45) 4* 0.50(300)(45) —- 300P]/300P
P = 55192308
2. 200(50)(1—0.50) : $4000.
3. 0.25 2 (Value of Account w
Econ 132A Solution to Midterm Exam ll A.Sohrabian
Winter 2013
1. You plan to invest in a risky asset with an expected rate of return of 13% and a standard
deviation of14% and a T—bill with a rate of return 4%.
a. What percentage 01‘ your money must be inv
ECON 132A - STUDY GUIDE AND BRAIN TEASER FOR QUIZ 2 AND FINAL EXAM ~ FALL 2014
1. What is the meanings of the concepts below?
a.
b.
7-9? 9 P a rrr'epqoraanp
Intrinsic value, book value, and market value
Defensive stock and cyclical stock
ADR
Protability,
ECON 132A STUDY GUIDE AND BRAIN TEASER FOR QUIZ 2 AND FINAL EXAM FALL 2014
1. A support level is a price range: at which a significant increase in demand for a stock is expected
2. Which of the following is true regarding resistance level? It is the level
14.41 Midterm Solutions
October 6, 2010
1
Question 1
Please write whether the following claims are true, false, or uncertain. No credit will be awarded
without a clear, well-reasoned explanation. In the interest of time, be concise!
1. (5 pts) Claim: Majo
Econ 132A Winter 2008
Solution to Exam II
A.Sobrabian
If two securities were perfectly negatively correlated, the weights for the minimum variance portfolio for those securities could be calculated, and the standard deviation of the resulting port
ECON-132A INTRODUCTION TO FINANCIAL INVESTMENTS
STUDY GUIDE FOR QUIZ 1
Most of the questions below are based on Bodie, Kane and Marcus Essentials of
Investments, 9th edition, McGraw-Hill Irwin, intended for a quick review. For more
detailed study, we reco
ECON-132A INTRODUCTION TO FINANCIAL INVESTMENTS
STUDY GUIDE FOR QUIZ 1 & MIDTERM
Most of the questions below are based on Bodie, Kane and Marcus Essentials of Investments, 9th edition, McGraw-Hill
Irwin, intended for a quick review. For more detailed stud
Chapter 01 - The Investment Environment
CHAPTER 1: THE INVESTMENT ENVIRONMENT
PROBLEM SETS 1. Ultimately, it is true that real assets determine the material well being of an economy. Nevertheless, individuals can benefit when financial engineering c
ECON 132A FALL 2015 QUIZ 2 & FINAL STUDY GUIDE
Chapter 8 Technical analysis, fundamental analysis, support and resistance levels
Chapter 9 Technical analysis
Chapter 10 Bonds
Chapter 12 Global economy, policies, shocks, business cycles, industry analysis
ECON-132A INTRODUCTION TO FINANCIAL INVESTMENTS
STUDY GUIDE FOR MIDTERM
Most of the questions below are based on Bodie, Kane and Marcus Essentials of
Investments, 9th edition, McGraw-Hill Irwin, intended for a quick review. For more
detailed study, we rec
Chapter 29:
Economic Analysis of Investment in Real
Estate Development Projects,
Part 2
1
Three considerations are important and unique about applying the NPV rule
to evaluating investment in development projects as compared to
investments in stabilized o
Capital Structure
= How investment (asset ownership) is financed . . .
= Use of debt vs equity (how much of each) as sources
of financial capital.
Traditionally this question has focused on publiclytraded corporations, but
Much real estate investment is
Chapter 27
The Real Options Model of Land Value and
Development Project Valuation
Major references include*:
J.Cox & M.Rubinstein, Options Markets, Prentice-Hall, 1985
L.Trigeorgis, Real Options, MIT Press, 1996
T.Arnold & T.Crack, Option Pricing in the R
I -
Winter 2013
1.
iThe covariance a b t' _ 2
E:0_0567:8'[ C n 6 es mated 35 Co" (TAJB) — BABBU M, or (0.6) (1.4)(026)2 =
\The variance of stockA 2 2 2
. equals [3A 0M +0 (eA)=(O.60)2(026)2-1—(020)2
:qgéogzgm. Es: cg? : 0316:3326“) = 25.36%.2 Likewise the
This is how you do time value of money (TMV) calculations on a Texas Instruments
financial calculator (I got this from the Texas Instruments documentation):
Before doing a TMV calculation, press [2 nd][QUIT] to return to standard calculator
mode.
To clear
Chapter 14:
After-Tax Investment Analysis
1
Going from the property before-tax cash flows (PBTCF),
to the equity after-tax cash flows (EATCF). . .
1) Property level (PBTCF):
Net CF produced by property, before subtracting debt svc pmts (DS)
and inc. taxe
Chapter 10:
BASIC MICRO-LEVEL VALUATION:
"DCF" & NPV
1
THE famous DCF VALUATION
PROCEDURE.
1.
2.
3.
FORECAST THE EXPECTED FUTURE CASH
FLOWS;
ASCERTAIN THE REQUIRED TOTAL
RETURN;
DISCOUNT THE CASH FLOWS TO PRESENT
VALUE AT THE REQUIRED RATE OF
RETURN.
THE
Chapter 1: Background and Issues
Real vs Financial Assets
Nature of investment: reduce current consumptions for greater future
consumptions
Real assets: used to produce goods and services
Financial assets: claims on real assets or claims on real-asset
Jasper Hwang
86691356
DUE: Tuesday September 27
Aperture, Shutter Speed, ISO
Video #1:
Aperture: adjustable hole in the lens the light goes through
The bigger the hole, the more the light goes through
Larger aperture, less depth of field
The smaller t
Jasper Hwang
86691356
How to Make a Contact Sheet
Make a B&W Proof
Negatives we have developed will be our first positive
Transparent parts will turn out black
Test Strip: series of exposures that allow you to go from light to dark of your negatives,
a
ECON-132A INTRODUCTION TO FINANCIAL INVESTMENTS
STUDY GUIDE FOR QUIZ 1
Most of the questions below are based on Bodie, Kane and Marcus Essentials of
Investments, 9th edition, McGraw-Hill Irwin, intended for a quick review. For more
detailed study, we reco