TO: BRETT T GRIFFIN, ENGLISH COMPOSITION PROFESSOR AT GEORGIA STATE
FROM: DANIELLE POWELL, UNDERGRADUATE AT GEORGIA STATE UNIVERISTY
DATE: August 29, 2013
SUBJECT: CRITISIZING THE PROFESSOR
In order to thrive in the modern business world, it is
Managing Bond Portfolios
Section 11.1: Interest Rate Risk
The sensitivity of bond prices to changes in market interest rate is the interest rate risk.
If a bond is issued with an 8% coupon when competitive yields are 8%, then it
Futures Contract: Section 17.1
A forward contract is an arrangement calling for future delivery of an asset at an
agreed upon price.
A forward contract protects each party from future price fluctuations.
Binomial Option Pricing Model
An option valuation model predicted on the assumption that stock prices can move to only two
values over any short time period
Two State Option Pricing
Suppose current stock price
Globalization and International Investing
Section 19.2: Risk Factors in International Investing
Exchange Rate Risk
Consider an investment in risk-free British government bills paying 10% annual interest in British
pounds. While th
Bond Prices and Yields
Corporation or government borrows money from public by issuing or selling debt
securities that are called bonds. It is a security that obligates the issuer to make specified
payments to the holder over a peri
The process of finding what we think the asset is worth.
Value What we think the asset is worth
Price What the market thinks it is worth.
If Value > Price => the asset is an undervalued asset buy or not
Price Earnings Ratio: Section 13.4
Price-Earnings Multiple: The ratio of stock price to its earnings per share. This is
commonly known as P/E ratio.
One common approach of valuing a firm is to use an earnings multiplier
FI 4000 Sec 005
These are the securities whose prices are determined by the prices of other securities.
These assets are also called contingent claims as their payoffs are contingent on the
prices of other
FI 4000 Sec 005
The Capital Asset Pricing Model
The capital asset pricing model (CAPM) predicts relationship between the risk and
equilibrium expected returns on risky assets. The CAPM was developed by Treynor,
Sharpe, Linter, and Mossin in the
Why do Proforma?
Evaluate alternative business strategies
Identify profit and funding effects of alternative
Explicit measurement of risk
Identify the amount of funds needed and
appropriate structure for the funding
Case Study Two
You have been working in the human resources department for a large
convention hotel in Dallas, Texas. Ramon, one of the bell staff associates, comes
into your office loudly complaining that he didnt get his annual wage increase as
he was p
Gross Fixed Asset
Net Fixed Asset
In FY 2006, the co. sold a Fixed Asset with original cost 46,000 and was fully depreciated
Describe the units of measurement used for pressure, and change from one
unit to another.
Use the pressurevolume relationship (Boyles law) to determine the new
pressure or volume when the temperature and amount of gas are constant.
FI 4000 Sec 005
Efficient Markets and the Behavioral Critique
Random Walks and the Efficient Market Hypothesis: Section 8.1
Random Walk: The notion that stock price changes are random and unpredictable.
Efficient Market Hypothesis: The hypothesi