Lecture 2
Hedge Fund Strategies
Never invest in an idea you cant illustrate with a crayon
Peter Lynch
Hedge Fund Elective 2014
Nick Motson
n.e.motson@city.ac.uk
1
Some Market Perspective
Inflation
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,00

Corporate Finance
Assignment 1
1. Suppose there are no capital market imperfections. A parcel of land costs $500, 000. For
an additional $800, 000 you can build a motel on the property. The land and the motel
should be worth $1, 500, 000 next year. Suppos

Principles of Finance
Problem Set 1
Time Value of Money
Nikos Nomikos
Q.1: What is the present value of an annuity of 100, receivable annually at the year end, for
each of the next 15 years? The interest rate is 10% pa.
Q.2: You would like to have enough

Assignment 1
Answers
1.
$1, 500, 000
= +$63, 636
1.10
Since the NPV is positive, you would construct the motel. Alternatively, we can compute
the rate of return as follows:
N P V = $1, 300, 000 +
r=
$1, 500, 000
1 = 0.1539 = 15.39%
$1, 300, 000
Since the

MSc Energy, Trade and Finance
Invigilated Exam
22 January 2015
Oil & Energy Transportation & Logistics
Time allowed: 2 hours and 30 min
Notes:
1- This exam paper consists of 6 questions, all of which should be answered
2- Attach the VCF sheet of question

MSc Shipping Trade & Finance
MSc Logistics Trade & Finance
MSc Energy Trade & Finance
SMM557
Full and Part time
Principles of Finance
16 January 2013
?.? ?.?
Candidates should answer ALL questions in PART A (Multiple Choice)
Each question carries 2.5 mark

PRINCIPLES OF FINANCE
ACADEMIC YEAR 2010/11
SAMPLE SORT SOLUTIONS
PART A: MULTIPLE CHOICE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
C
A
A
B
B
B
A
C
B
D
PART B
QUESTION 11
(a)
The value of the contract is $20 million.
(b)
Annual deposits of 6,406.07
(c)
(i) The NPV i

PRINCIPLES OF FINANCE
ACADEMIC YEAR 2012/13
SAMPLE SHORT SOLUTIONS
PART A: MULTIPLE CHOICE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
C
A
B
C
C
C
C
A
B
B
PART B:
QUESTION 11
(a)
The present value of the salary is 1,610,450.62.
(b)
He will be able to repay in 13.72 we

leSession 1:
The Life Cycle of a Field:
12345-
Exploration
Appraisal
Development
Production
Abandonment
* Phase 1: Identify & Quantify Resource & Value Potential
1- acquire acreage
2- analyze the acreage
3- Rationalize acreage portfolio
* Drill
* Phase 2:

The University for business
and the professions
CASS Business School
MSc Shipping Trade & Finance
MSc Logistics Trade & Finance
MSc Energy Trade & Finance
SMM557
Principles of Finance
Full and Part time
xxth January 2011
?.? ?.?
Candidates should answer A

Lecture 6
Due Diligence
What Can & What Does Go Wrong
There are so many ways to lose, but so few ways to win.
Perhaps the best way to achieve victory is to master all
the rules for disaster, and then concentrate on avoiding
them.
Victor Niederhoffer The E

Lecture 5
Hedge Fund Data
Availability, Biases & Statistical
Properties.
There are three kinds of lies: lies, damned lies, and statistics
Mark Twain
1
Hedge Fund Elective 2014
Nick Motson
n.e.motson@city.ac.uk
Hedge Fund Data
Issues
Reporting of perform

Lecture 4
Analysis of hedge fund performance,
performance metrics & factor models.
+
Incorporating Hedge Funds into a Traditional
Portfolio.
1
Hedge Fund Elective 2014
Nick Motson
n.e.motson@city.ac.uk
Hedge Fund Performance
Absolute Versus Relative Retu

Lecture 3
Hedge Fund Strategies
(cont.)
"I don't think there are that many pure anomalies that can
occur. - Potential Investor
"As long as there continue to be stupid people like you,
we'll make money. - Myron Scholes
LTCM sales pitch
1
Hedge Fund Electiv

Principles of Finance
Problem Set 2: Solutions
Investment Decision Criteria
Q.1:
The present value of the 10-year stream of cash inflows is (using the annuity tables)
170,000 * 5.216 = 886,720.
Thus:
Q.2:
NPV = - 800,000 + 886,720 = + 86,720
To find the