Towson University
Fin333.001
Midterm Exam
Prof. Rhee
Spring 2011
Name:_
ID#:_
1. Real assets in the economy include all but which one of the following?
A. Land
B. Buildings
C. Consumer durables
D. Common stock
E. Patents
Answer: D
D is a financial asset.
Exercises on Performance Evaluation
1._ did not develop a popular method for riskadjusted performance evaluation of mutual funds.
A) Eugene Fama
B) Michael Jensen
C) William Sharpe
D) Jack Treynor
E) A and B
Answer: A Difficulty: Easy
Rationale: Michael
SAMPLE MIDTERM QUESTIONS
William L. Silber
HOW TO PREPARE FOR THE MID TERM:
1. Study in a group
2. Review the concept questions in the Before and After book
3. When you review the questions listed below, make certain that you know WHY the wrong answers
Oct 5, 2014
PORTFOLIO ANALYSIS
Summary
Holding a .42 Sharpe ratio, our portfolio is performing relatively satisfactory. Criterions we used
in this assessment are optimal return, standard deviation and Sharpe ratio. First of all, the return
and the risk of
5) Consider the free cash flow approach to stock valuation. Utica Manufacturing Company is
expected to have beforetax cash flow from operations of $500,000 in the coming year.
The firm's corporate tax rate is 30%. It is expected that $200,000 of operatin
100YEAR BOND ANALYSIS CASE
November 2nd
Menglei Lu
Yijia Liu
Keiman Ng
Xiaotong Zhang
Yihan Zhang
Duration and convexity were the most important and popular factors in managing our bond
portfolios. Duration assumptions caused the differences between the
Practice Questions for Final Exam, FIN 623
1. Security A has an expected rate of return of 0.10 and a beta of 1.1. The market expected
rate of return is 0.08 and the riskfree rate is 0.05. The alpha of the stock is
A) 1.7%.
B) 1.7%.
C) 8.3%.
D) 5.5%.
E)
Tulane University
A.B. Freeman School of Business
FIN7160 Investment Theory and Practice
Fall 2014
All Sections
GWHII 2110
David A. Lesmond
Oce: M136
8655665
Oce Hours:
M: 5:30 7:00 p.m.
Course Outline And Policies
1. Course Description and Objectives
Cou
,
Basic mathematical knowledge
October 25, 2016
,
Numerical sets
N = cfw_0, 1, 2, 3,
set of natural numbers.
Z = cfw_0, 1, 2, 3,
set of integer numbers.
Q = cfw_ qp : q Z, p N, p 6= 0
set of rational numbers. The decimal
expansion of a rational number a
,
Descriptive Statistics
October 18, 2016
,
Statistics is a branch of Mathematics that deals with the collection,
classication, analysis, and interpretation of numerical facts or data.
Information may be qualitative or quantitative. A quantitative variabl
,
Lecture notes on Calculus
November 1, 2016
,
The goal of the present lecture notes is not to transform you in a
basic notions from
mathematical analysis in order to make understandable denitions and
tools of probability theory.
mathematical specialist b
CHAPTER 3: HOW SECURITIES ARE TRADED
PROBLEM SETS
1.
DJ
Answers to this problem will vary.
The dealer sets the bid and asked price. Spreads should be higher on inactively traded
stocks and lower on actively traded stocks.
(a)
(a)
In principle, potential l
Chapter 09  The Capital Asset Pricing Model
Chapter 09
The Capital Asset Pricing Model
Multiple Choice Questions
1. In the context of the Capital Asset Pricing Model (CAPM) the relevant measure of risk is
A. unique risk.
B. beta.
C. standard deviation of
P172, P176, P1710
Oct 4 statement
of CF
1) Operating CFCFs related to transactions related to production and delivery of goods
and services.
Cash basis income.
2) Investing CFsbuying or selling of PPE, intangibles, marketable securities, acquisitions,
P53
Analyzing credit risk analysis and longterm solvency
Requirement 1:
Two coverage ratios are provided. The interest coverage ratio is
computed as earnings before interest and taxes (EBIT) divided by
interest expense. The cash flow coverage ratio uses
E513 Causeofchange analysis
Requirement 1:
($ in millions)
Causes of change in net income
Net income 2013
$1,364.0
Effect of increase in sales
[$1,000 x (145%15%)]
248.0
Effect of increase in COGS%
[$6,500 x 2% x (138%)]
(80.6)
Effect of increase in OP
Oct 21 SE
Income or loss comes only form transactions with OUTSIDERS.
Assets

liabilities
=
Net capital deployed or the firm
owners equity
contributed/earned and retained by the firm
E158 Newton
DR
1/1/2014
Cash
CR
3,000,000
Common stock
2,000,000 Par v
Problems Add Read P611
Nov 25
Valuation:
1) Forecast a valuerelevant attribute such as
Distributable or free cash flows
Accounting earnings
Balance sheet BVs
2) Determine the risk or uncertainty of those amounts
3) Take the PV of those amounts using a d
E1516. Employee stock options
(AICPA adapted)
Under the fair value method now required by GAAP, Amos would
record on the options grant date an expense equal to the value of
the options granted. According to the information provided, each
option was worth
E153. Retiring common stock
(AICPA adapted)
Because the shares are retired rather than held in treasury, they
are removed from the books of Peter Corporation. No gain or loss is
recorded because the transaction involves owners, not outsiders.
The journal
E74. Sunshine Groceries Inc.: Salesbased bonus plan
There are two different ways to grow sales at Sunshine Groceries:
(i) grow sales at existing stores by increasing customer traffic and/or
the amount each customer spends per visit; and (ii) grow sales
P172. Cash flow statement under indirect method
P176. Reconciling changes in balance sheet accounts with amounts
reported in the cash flow statement
Requirement 1:
For Publix, the decrease in receivables of $22,517,000 reported in
the 2012 cash flow sta
Sample Questions Chapter 2
Question 1)
Based on the information given in the above table, for a priceweighted index of the three
stocks calculate:
a. the rate of return for the first period (t = 0 to t = 1).
b. the value of the divisor in the second peri