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, I hope this helps with your studying.
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.
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
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.
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.
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.
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))
Brokerage Firms/Accounts: About 6 questions.
Cash and margin accounts. Full Service vs Discount Firms. Types of Orders:
Market, Limit, Stop Loss, Short Selling.
Short Covering, Days to Cover, Short Interest.
The final will be graded right after the exam is finished and the results
will be posted on this page.
Email me if there are questions.