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
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
Basic mathematical knowledge
October 25, 2016
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
A.B. Freeman School of Business
FIN7160 Investment Theory and Practice
David A. Lesmond
M: 5:30 7:00 p.m.
Course Outline And Policies
1. Course Description and Objectives
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 risk-free rate is 0.05. The alpha of the stock is
100-YEAR BOND ANALYSIS CASE
Duration and convexity were the most important and popular factors in managing our bond
portfolios. Duration assumptions caused the differences between the
5) Consider the free cash flow approach to stock valuation. Utica Manufacturing Company is
expected to have before-tax 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
Oct 5, 2014
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
SAMPLE MID-TERM 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
Exercises on Performance Evaluation
1._ did not develop a popular method for risk-adjusted 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
CHAPTER 3: HOW SECURITIES ARE TRADED
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.
In principle, potential l
Chapter 09 - The Capital Asset Pricing Model
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.
C. standard deviation of
Chapter 03 - How Securities are Traded
How Securities are Traded
Multiple Choice Questions
3. Firms raise capital by issuing stock
A. in the secondary market.
B. in the primary market.
C. to unwary investors.
D. only on days when the market is
1. Real assets in the economy include all but which one of the following?
C. Consumer durables
D. Common stock
D is a financial asset.
Sample Questions Chapter 2
Based on the information given in the above table, for a price-weighted index of the three
a. the rate of return for the first period (t = 0 to t = 1).
b. the value of the divisor in the second peri
P17-2. Cash flow statement under indirect method
P17-6. Reconciling changes in balance sheet accounts with amounts
reported in the cash flow statement
For Publix, the decrease in receivables of $22,517,000 reported in
the 2012 cash flow sta
E7-4. Sunshine Groceries Inc.: Sales-based bonus plan
There are two different ways to grow sales at Sunshine Groceries:
(i) grow sales at existing stores by increasing customer traffic and/or
the amount each customer spends per visit; and (ii) grow sales
E15-3. Retiring common stock
Because the shares are retired rather than held in treasury, they
are removed from the books of Peter Corporation. No gain or loss is
recorded because the transaction involves owners, not outsiders.
E15-16. Employee stock options
Under the fair value method now required by GAAP, Amos would
record on the options grant date an expense equal to the value of
the options granted. According to the information provided, each
option was worth
Problems Add Read P6-11
1) Forecast a value-relevant attribute such as
Distributable or free cash flows
Balance sheet BVs
2) Determine the risk or uncertainty of those amounts
3) Take the PV of those amounts using a d
Oct 21 SE
Income or loss comes only form transactions with OUTSIDERS.
Net capital deployed or the firm
contributed/earned and retained by the firm
2,000,000 Par v
E5-13 Cause-of-change analysis
($ in millions)
Causes of change in net income
Net income 2013
Effect of increase in sales
[$1,000 x (145%15%)]
Effect of increase in COGS%
[$6,500 x 2% x (138%)]
Effect of increase in OP
Analyzing credit risk analysis and long-term solvency
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