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Finance 4310 - Third exam study notes
Here is a totally un-exhaustive list of potential midterm 3 questions and topics. This year third
s
exam will be similar in format to other years. We are going to try to include questions from
Chapter 18, Specically
NAME _
FINA 4310
Midterm Exam I EDITED FOR 2010 REVIEW
Tuesday, February 10, 2004
This exam is divided into three sections. There are a total of 45 points on the
exam. Definition (10 points), Multiple Choice (20 points), Short Answer (15
points). The exam
StockTrak Portfolio Simulation Exercise
Spring 2014
Trading Rules
You are required to actively manage an investment portfolio, which will have an initial
value of $500,000. You are allowed a maximum of 200 trades over the trading period,
which lasts 12 we
Investor Utility & Indifference Curves
The CAL
The Optimal Complete Portfolio
FINA 4310; Survey of Investments
Capital Allocation & Portfolio Theory with Risky and Risk-free Assets
Monday, Week 7 (9/29/2014)
Investor Utility & Indifference Curves
The CAL
The PE ratio
Equity Valuation
FINA 4310; Survey of Investments
Equity Valuation
Wednesday, Week 4 (9/12/2014)
Examples
The PE ratio
Equity Valuation
Examples
Introduction & discussion:
Lets start with a few current PE ratios that might be interesting:
Goo
YTM & The Yield Curve
The Yield Curve & Future IRs
FINA 4310; Survey of Investments
The Term Structure of Interest Rates
Friday, Week 2 (8/29/2014)
Term Structure Theories & Interpretations
YTM & The Yield Curve
The Yield Curve & Future IRs
Term Structure
Current version: 08/10/2014; 07:42:56 AM
TERRY COLLEGE OF BUSINESS
THE UNIVERSITY OF GEORGIA
Fall Semester 2014
FINA 4310: Survey of Investments
Prof. Lee J. Cohen
Phone: 542-1784/Fax: 542-9434
Brooks Hall 432
leecohen@uga.edu
Course Web Page: elc.uga.edu
Invest. Companies: take funds of a group of investors and pool them together to purchase & manage a portfolio.
Benefits: diversification, divisibility, profession management, low transaction costs
Open-end Funds (mutual fund): redeemable securities. Fund
Return: Realized Return
Note that if all dividends are reinvested, the holding period return is: HPR =
(1+r1) x (1+r2) x x (1+rn)
Expected return: Probability weighted average return of all possible outcomes
Variance:
-Standard Deviation: On average, how
FINA 4310
Survey of Investments
Spring 2014
Professor: Sara Holland
Email: sbh@uga.edu
Phone: (706) 5421415
Office: 439 Brooks Hall
Office Hours: TR, 4:00pm to 5:00pm
Contact Notes: The best way to contact me outside of office hours is via my UGA e-mail.
Survey of Investments
Lecture 7
Risk and Return
Sara Holland
Terry College of Business, UGA
February 13, 2014
Todays Class
Portfolio choice
Risk and return
Probability distributions
Historical returns
Historical tradeo between risk and return
Invest
Financialmarketsaretraditionallysegmentedintomoneyandcapitalmarkets.
o Moneymarkets:shortterm,marketable,liquid,lowriskdebtsecurities.
Calledcashequivalentsorcash.
o Capitalmarkets:longertermandriskiersecurities.Securitiesmorediverse
thanmoneymarkets.4se
YTM & The Yield Curve
The Yield Curve & Future IRs
FINA 4310; Survey of Investments
The Term Structure of Interest Rates
Friday, Week 2 (8/29/2014)
Term Structure Theories & Interpretations
YTM & The Yield Curve
The Yield Curve & Future IRs
Term Structure
The PE ratio
Equity Valuation
FINA 4310; Survey of Investments
Equity Valuation
Wednesday, Week 4 (9/12/2014)
Examples
The PE ratio
Equity Valuation
Examples
Introduction & discussion:
Lets start with a few current PE ratios that might be interesting:
Goo
Price Discovery & The EMH
Asymmetric Information & Liquidity
FINA 4310; Survey of Investments
Information & Financial Markets:
EMH, Price Discovery, Asymmetric Information and Liquidity.
Friday, week 10 (10/24/2014)
Price Discovery & The EMH
Asymmetric In
Invest. Companies: take funds of a group of investors and pool them together to purchase & manage a portfolio.
Benefits: diversification, divisibility, profession management, low transaction costs
Open-end Funds (mutual fun
Money Markets: Treasury Bills, Certificates of Deposit, Commercial Paper, Bankers Acceptances, Eurodollars, Repos and Reverses, Federal Funds, LIBOR
(London Interbank Offer Rate)
T-Bills: Bid: rate (price) at which dealer (market/investor) is willing to b
Chapter 13 Equity Valuation
Valuing Securities
With a theory of asset pricing, we are able to identify mispricings
EMH implies that prices reflect information
If this is true, its difficult to find undervalued securities
Searching for mispriced securi