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Finance 2302

Time Value of Money

Finance 3300

Mutual Funds

Options

Bonds

Fededral

Reserve

Economic

Analysis - Stocks

Finance 3303

Mean & Standard Deviation

FINANCE 2302 - EXAM 1 INFORMATION

The exam will be approximately 30 questions. I will give you the six time value of money equations (you do not need to memorize them). [Remember to bring a scantron form].

Questions will deal with concepts on the following terms. There will be several calculation-oriented questions (time value, arithmetic mean, etc).

There may be questions about the syllabus.

Setting of Investment Information: Found in the "First Class Notes." Understand them.

Risk & Safety of Principal

Current Income vs Capital Appreciation

Liquidity Considerations

Short Term vs Long Term

Tax Factors

Ease of Management

Risk & Safety of Principal

Current Income vs Capital Appreciation

Liquidity Considerations

Short Term vs Long Term

Tax Factors

Ease of Management

Time Value of Money (6 time value equations)

Arithmetic Mean

Geometric Mean

Variance

Standard Deviation

Arithmetic Mean

Geometric Mean

Variance

Standard Deviation

Mutual Funds:

Load, No Load, Front-end Load, Back-end Load

Dollar Cost Averaging

Net Asset Value (NAV): Know the calculation.

Open-end, Closed-end

Prospectus

Sector Funds

Index Funds

Morningstar

Lipper Analytical Services

Load, No Load, Front-end Load, Back-end Load

Dollar Cost Averaging

Net Asset Value (NAV): Know the calculation.

Open-end, Closed-end

Prospectus

Sector Funds

Index Funds

Morningstar

Lipper Analytical Services

Questions about current financial events as discussed in class and on CNBC during the first few minutes of class.

Questions on Wall Street Journal articles that I asked you to read (I would have emailed you concerning an article).

FINANCE 2302 - EXAM 2 INFORMATION

Bond indenture, call provision, coupon rate, debenture, junk bonds, maturity date, par value, put provision, sinking-fund provision.

Treasury Bills/Notes/Bonds/Strips, Zero-coupon bonds.

Expectations Hypothesis, Liquidity Preference Theory, Market Segmentation Theory, Term Structure of Interest Rates, Yield Curve

Federal Reserve: Discount Rate, Federal Funds Rate, Reserve Requirements, Open Market Operations, Fed. Chairman, Federal Open Market Committee (FOMC)

Agency Securities: Pass-Through, Mortgage-backed security. Securitization.

CALCULATIONS:

Coupon Yield, Current Yield, Yield-to-Maturity, Yield-to-Call, Bond Valuation, Converting a bond quotation into a price.

YOU WILL ABSOLUTELY HAVE BOND PROBLEMS ON THE EXAM. Finding a price from a quote, finding a price when interest rates change, YTM, YTC.......There are practice problems on this site, click on the "Bond" link on the homepage, then the link should be right in front of you.

I will provide time value formulas, the others are up to you.

Questions about current financial events, articles I may have sent the class or pointed out in the Wall Street Journal, CNBC broadcasts and discussion.

FINANCE 2302 - EXAM 3 INFORMATION

The third exam will cover The Economy, Industries, Stocks, Securities Business, Averages, Indexes and Brokerage Firms.

Business Cycle, Coincident Indicators, Fiscal Policy, Lagging Indicators, Leading Indicators. Bottom-Up Approach (Stock Pickers), Top-Down Approach.

Monopolies, Oligopolies, Pure Competition, Imperfect Competition.

Monopolies, Oligopolies, Pure Competition, Imperfect Competition.

Beta, General Dividend Valuation Model, Dividend Growth Model, Equity Risk Premium, Earnings Valuation Model (P/E), Price-Earnings Ratio, Required Rate of Return, Risk-Free Rate, Valuation.

Dividends on Stocks and Stock Splits

Preferred Stocks and their characteristics

Count on calculations dealing with: the CAPM (Required Rate of Return), Price-Earnings Ratio, Dividend Yield. You will NOT have to find the price of a stock using the dividend discount model. The models are fair game for questions.

Averages & Indexes: Dow Jones Industrial Average, Standard & Poors 500.

Securities Business: Primary and Secondary Markets, Investment Bankers, Best Effort Underwriting, Stand-by Underwriting, Un-syndicated offering, Syndicate, Secondary Distributors.

Brokerage Firms: Cash account vs Margin account, Full-Service Firm vs. Discount Firm.

Trades: Long, Market Order, Limit Order, Stop Order, Short sale, Short Interest, Days to Cover, Short Squeeze, Short Against the Box.

Trades: Long, Market Order, Limit Order, Stop Order, Short sale, Short Interest, Days to Cover, Short Squeeze, Short Against the Box.

Questions about current financial events as discussed in class and on CNBC during the first few minutes of class.

Questions on Wall Street Journal articles that I asked you to read.

FINANCE 2302 - FINAL EXAM TERMS

Here is the information for the final exam. The exam will be about 50 questions, 2 points each.

In each of the sections below are comments relating to how important the info is in relation to the exam.

First class notes - the definition of an investment. Ingredients of the investment objectives.

Time Value of Money: Look at the sample questions on the website. I suspect that there will be about 5 time value questions. Time value formulas WILL be provided. This section includes Mean and Standard Deviation calculations, arithmetic mean, geometric mean.

Mutual Funds: Probably about 5 questions.

Load, No Load, Front-end Load, Back-end Load

Dollar Cost Averaging

Net Asset Value (NAV)

Open-end, Closed-end

Investment Objective

Load, No Load, Front-end Load, Back-end Load

Dollar Cost Averaging

Net Asset Value (NAV)

Open-end, Closed-end

Investment Objective

BONDS: About 15 questions

Bond indenture, Call provision, coupon rate, debenture, junk bonds, maturity date, par value, put provision, Treasury Bills/Notes/Bonds/Strips, Zero-coupon bonds.

Current yield, Expectations Hypothesis, Liquidity Preference Theory, Market Segmentation Theory, Term Structure of Interest Rates, Yield-to-Call, Yield-to-Maturity.

Bond indenture, Call provision, coupon rate, debenture, junk bonds, maturity date, par value, put provision, Treasury Bills/Notes/Bonds/Strips, Zero-coupon bonds.

Current yield, Expectations Hypothesis, Liquidity Preference Theory, Market Segmentation Theory, Term Structure of Interest Rates, Yield-to-Call, Yield-to-Maturity.

Federal Reserve: Discount Rate, Federal Funds Rate, Reserve Requirements, Open Market Operations, Fed. Chairman, Federal Open Market Committee.

Calculations that we need to aware of:

Coupon Yield, Current Yield, Yield-to-Maturity, Yield-to-Call, Bond Valuation, Converting a bond quotation into a price.

Calculations that we need to aware of:

Coupon Yield, Current Yield, Yield-to-Maturity, Yield-to-Call, Bond Valuation, Converting a bond quotation into a price.

STOCKS: About 15 questions

Business Cycle, Coincident Indicators, Discount Rate, Fiscal Policy, Lagging Indicators, Leading Indicators, Monetary Policy.

Bottom-Up Approach, Industry Life Cycles, Monopolies, Oligopolies, Pure Competition, Top-Down Approach.

Beta, General Dividend Valuation Model, Dividend Growth Model, Equity Risk Premium, Growth Companies, Growth Stock, Price-Earnings Ratio, Required Rate of Return, Risk-Free Rate. Common stock, preferred stock.

Bottom-Up Approach, Industry Life Cycles, Monopolies, Oligopolies, Pure Competition, Top-Down Approach.

Beta, General Dividend Valuation Model, Dividend Growth Model, Equity Risk Premium, Growth Companies, Growth Stock, Price-Earnings Ratio, Required Rate of Return, Risk-Free Rate. Common stock, preferred stock.

Brokerage Firms/Accounts: About 6 questions.

Cash and margin accounts. Full Service vs Discount Firms. Types of Orders: Market, Limit, Stop Loss, Long positions, Short Selling. Short Covering, Days to Cover, Short Interest. The securities business, investment bankers, underwriters.

Cash and margin accounts. Full Service vs Discount Firms. Types of Orders: Market, Limit, Stop Loss, Long positions, Short Selling. Short Covering, Days to Cover, Short Interest. The securities business, investment bankers, underwriters.

OPTIONS: About 15 questions

Calls, Covered Options, Exercise (Strike) Price

At-the-Money, In-the-Money, Out-of-the-Money

Intrinsic Value, Naked Options, Option Clearing Corporation

Put, Speculative Premium. Black-Scholes Option Pricing Model, you won't have to calculate it. Elements of it are fair game for questions (like N(d1) and N(d2))

Calls, Covered Options, Exercise (Strike) Price

At-the-Money, In-the-Money, Out-of-the-Money

Intrinsic Value, Naked Options, Option Clearing Corporation

Put, Speculative Premium. Black-Scholes Option Pricing Model, you won't have to calculate it. Elements of it are fair game for questions (like N(d1) and N(d2))

Read the articles that I have included on the site about Dell Computer company and their use of options. Questions on these articles are on the final exam. Links to the articles are at the bottom of the first page of my Options notes.

Updated: May, 2016