Computing the Expected Return and Standard Deviation on the BA II Plus Professional Calculator
There is a way to compute the expected return and standard deviation on the BA II Plus, but it is a little
cumbersome. Please refer to problem 8-6 (p. 291) for
Exam 1 Review
Chapter 1
Advantages and Disadvantages of the different forms of Business Organizations
Proprietorship and Partnership
o Proprietorship: an unincorporated business owned by one individual
o Partnership: an unincorporated business owned by tw
These are revisions of the Sample Problems posted under "Assignments" on Blackboard. To generate a new set of questions,
For detailed approaches to solving these problems, please refer to the documents in the "Sample Problems" folder on Blackb
Sample Prob
What return do you need to recover from a certain percentage drop in your portfolio? The results are scary!
Drop in Return
0
1
4
7
10
13
16
19
22
25
28
31
34
37
40
43
46
49
50
52
55
58
61
64
67
70
73
76
79
82
85
88
91
94
97
Return Required to Break Even
0
Frohlich
Investments
Time Value of Money
Name_
1.A) Thirty years ago, Jesse Jones bought 10 acres of land for $1000 per acre in what is now
downtown Houston. What has been the compound annual rate of growth in the lands value if
the land is worth $5350.65
Frohlich
Finance
Name_KEY_
Time Value
12 points
(12 points) You will need $50,000 at the end of year 20. You currently have 10,000. If interest
rates will be 2% for the first ten year and then will increase to 4% thereafter, how much must you
save each ye
Frohlich
Name_
Quiz 2 Chapters 6,7,8
Multiple Choice
Identify the choice that best completes the statement or answers the question.
_
1. Jarrod King, a private investor, purchases a Treasury bill with a $10,000 par value for $9,645. One hundred
days later
Frohlich
Investments
Time Value of Money
Name_
1.A) Thirty years ago, Jesse Jones bought 10 acres of land for $1000 per acre in what is
now downtown Houston. What has been the compound annual rate of growth in the lands
value if the land is worth $5350.65
FIN 3403
Exam 3 Review
General:
I will provide scratchpaper
The formula sheet you will have is the same as the one posted on the second page
of this document
Come a little early I will start the exam right after the previous class lets out
Coverage is
FIN 3403
Exam 2 Review
General:
Formulas provided will be the same as those on the second page of this document
Bring your ID, calculator, and #2 pencil
I will provide a GREEN scantron
Coverage is chapters 2, 7, and 9
27 questions total, 3 from Chapt
Formulas
FV PV (1 i ) N
PV
FV
(1 i ) N
(1 i ) N 1
FVA ORD PMT
i
FVA DUE FVA ORD (1 i)
PVA ORD
1
1 (1 i ) N
PMT
i
PVA DUE PVA ORD (1 i )
PVPERP
PV
PMT
i
N
CFN
CFt
CF1
CF2
.
1
2
N
t
(1 i )
(1 i )
(1 i )
t 1 (1 i )
Effective annual rate (EFF%) =
M
i
FIN 3403
Exam 1 Review
General:
IMPORTANT: I WILL PROVIDE YOU WITH A GREEN SCANTRON
I will provide the same formula sheet as on the second page of this document
29 MC questions (7 from Chapter 1, 22 from Chapter 5)
Come a little early I will start the
Frohlich
2015
Extra Credit 5
ISLM
Name_
Plot two IS curves on a single graph with one LM Curveone IS curve relatively steep and the other
relatively flat. For the given LM curve, indicate which IS curve makes fiscal policy more effective by
indicating the
#
(a) Plot normally shaped IS and LM curves on a single graph and label the axes. Explain briefly each cu
(b)
Explain why IS and LM curves are so shaped.
(c)
Illustrate in the above graph, using dashed line(s), the result of a decrease in reserve requirem
Frohlich
INVESTMENTS
(1b)
NAME_ Key_
1. Consider the companys common stock. It is estimated that the companys 5-year dividend growth rate
to be 6.0 percent. Assume that the companys stock traded on December 31, 20X2
for $34.50. Assume for now that the 6.0
Spring 2016
Extra Credit 2
Name_
You have recently graduated and have secured a position with the XYZ company. Starting in year 2, you
will be saving $5,000 per year for 4 years (year 2 through year 5), inclusive. You will be paying $10,000
per year for y
Finance 3303
1. (a)
(b)
(c)
IS-LM PROBLEM SET I
Name_
Must show work to arrive at answer or explain where appropriate
-you cannot just circle the answer
(If the answer is not true -explain why)
Plot normally shaped IS and LM curves on a single graph and l
Frohlich
2015
Extra Credit 6
TV-Multiple Rates
Name_
You are planning your retirement. You plan to retire in 45 years and will need
50,000 per year received at the beginning of the year from year 45 through year 64.
If you expect to start saving for your
FIN 3303
EXTRA CREDIT 8
CHAPTER 10 AND 11
NAME_
You have Do=$1
Required return is 8%
Years 1-3 dividends will grow at 40%, years 4-5 dividends will grow at 30%
Year 6 dividends will grow at 15%, and year 7 and thereafter dividends will grow constantly at
Frohlich
FUTURES HOMEWORK
18 point
(EXTRA CREDIT 3.5 POINTS)
Name_
Problems 1-5: 2.5 points (1/2 point each)
1.
Corn is currently selling for $6.15 a bushel while the 3-month futures price is $6.20. Carlos
believes that corn will actually sell for $6.45 a
Por
Security
Symbol
Stock
Exchange
Type
Date of
Price Per
Purchase # of Shares Share
STOCKS
The AES
Corporation
AES
NYSE
Common
1/18/2013
240
11.13
Viacom Inc.
VIAB
NASDAQ
Common
1/18/2013
150
57.86
Greenhunter
Energy Inc. 10%
GRHC
NYSE
Preferred
1/18/201
1Plotonone graphtwo LM curves with one IS curveone LM curve relatively st
other relatively flat.ForthegivenIScurve,indicatewhich LM curve makes monetar
effectivebyindicatingamonetary policy pointanddrawingnew steep and flat LM cu
the point.Whatisbehindthe
Frohlich Investments
Time Value of Money
Name_Answers_
1.A) Thirty years ago, Jesse Jones bought 10 acres of land for $1000 per acre in what is now downtown
Houston. What has been the compound annual rate of growth in the lands value if the land is worth
Security
Symbol
Stock
Exchange
Type
Date of
Purchase
# of Shares
STOCKS
JPMorgan Chase & Co.
JPM
NYSE
Common
1/23/2014
700
WEN
NASDAQ
Common
1/23/2014
131
Wells Fargo & Co. Dep. Pfd. (Rep
1/40th interest in a share of
8.00% Non-Cum Perp Cl A Pfd
Series J)
Answers to Sample Bond Problem
1. Calculate Price given the coupon rates and YTM
You purchased a bond 3 years after it was issued with 3% coupon for years1-4, 4% coupon for
years 5-9 and 5% coupon for years 10-15. If the YTM at the time of your purchase w