Finance 440 Final Notes
excess return is a loose concept in finance
1. returns with the risk-free rate subtracted out
2. returns minus the average returns (as is the case here)
3. excess returns are actual returns minus returns expected, given
Finance 440 Exam 1 Study Guide
Finance 440 Notes: (1/26)
LT Debt: if (cash + other current assets + Net PP&E - Current Liabilities - Equity > 0, then that is
what LT debt is, otherwise it is zero.)
Cash: max (old calculation for cash, total liabilities &
SHORT ANSWER (Two points each unless otherwise noted)
1) What does the phrase dynamic strategy mean in finance?
Cover your rear end at all times
2) What is the basic difference between forward contracts and future contracts?
Forward Contracts; cash flows