AFM121 Study Guide - Final Guide: Risk-Free Interest Rate, Standard Deviation, Sharpe Ratio
16 Jun 2018
School
Department
Course
Professor
Chapter 9 (pages 95-99)
Margin Accounts
Short Sales
Buy and Sell Orders
Chapter 10 (pages 105-118)
Derivatives
Chapter 11 (pages 123-135)
Financing and Listing of Securities
Underwriting
Bought Deals, Proxy, Voting Trusts
Chapter 13 (pages 151-160)
Fundamental and Technical Analysis
DDM, P/E, ROE, etc
Chapter 15 (183-191)
Portfolios
Total Returns and Correlation
Safety, Income, Growth
Chapter 16 (197 – 203)
Portfolio Management
Asset Mix and Allocation
Equity Cycle and Asset Timing
Chapter 18 (214-223)
Mutual Funds
NAVPS and MER
Chapter 19 (229 – 233)
Types of Mutual Funds
Withdrawal Plans
Chapter 21 (251-257)
Hedge Funds
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Intrinsic value: the amount an option is in the money or out of the money. Call: iv = max (p s, 0) Where p = share price and s = exercise price. Time value = option price intrinsic value. Cum rights period: iv = (market price subscription price)/(n+1) Ex rights period: iv = (market price subscription price)/(n) Leverage potential = (market price of underlying share) / (market price of warrant) Time value = price of warrant iv. Roe = (net earnings before extraordinary items)/(total equity) Constant growth ddm: p = div1/(r g), where g = the rate at which the dividends are expected to grow per year. Div1 = div0 * (1 + g) p/e = b/(r g) b = div1/eps1 div1 = (eps0 * b) * (1 + g) Return % = cash flow + (ending value beginning value)/beginning value * 100% Where rf = risk free rate rp = actual return op = standard deviation.
