
Q. What will the format of
the exams and what chapters will they cover?
A. The midterm will cover chapters 4, 7 and 8.
 Computation of variance of returns of a portfolio (Notes
on portfolio variance and portfolio risk; look here
for a workedout example, problem III, midterm 2)
 Understanding and manipulating the CAPM (Introductory
notes)
 Capitalizing Operating Leases (slides)
 Cost of capital (slides)
 Bottomup beta computation (slides)
(look at workedout problems on my site, as well, e.g. at Problem
4, Midterm, Summer 2007, FIN 647)
 Beta regressions and interpretation (for example, look at FIN
647 Prob. 2, Exam 2, Fall 2005)
Look also at a workedout
assignment based on beta computations (look here
for the statement of the assignment)
See also, FIN 320, Assignment
4, Fall 2000.
Word questions:
Q. What will the format of
the final exam and what chapters will they cover?
A. The final will cover chapters 912, 14, and 1820. Specifically, it
will cover the following topics:
 Model Choice
 Example: Problem 2, Chapter 14, Damodaran "Investment Valuation,"
2nd Edition
 Forecasting Cashflows
 Example: Problem 5, Chapter 10, Damodaran "Investment Valuation,"
2nd Edition
 Moving From Earnings to
Cashflows
 Example: Problem 4, Chapter 9, Damodaran "Investment Valuation,"
2nd Edition
 Comparative valuation
 Example: Problem 5, Chapter 19, Damodaran "Investment Valuation,"
2nd Edition
As for the format of the exam, there will be
 A media article with associated questions; this media article can
relate to any of the chapters assigned for the final.
 one section covering shortanswer questions.
 quantitative questions on at least two of the following areas:
 capitalizing R&D
 forecasting components of cashflow and
 comparative valuation.
Q. Are the exams open book or closed
book?
Ans. Click here for more information.
Q. Can I do extra work to improve my
grade?
Ans. Sorry. I believe that in order to be fair, I have to give every student
the same opportunity to do extra work. Obviously, this is not feasible.
However, on occasion I will allow you to resubmit an assignment for grade
improvement.
Q. What can I do to check my
understanding of the material and to prepare for the exams?
Ans.
 You can also try quizzes from past terms.
Frequently, the answers to quiz problems can also be found on my webpages.
 You can try to answer the questions at the end of media
articles.
 You can read current newspaper and magazine articles on relevant topics
and make up your own questions and articles.
Q. What do I have to study from
each chapter?
Ans. In each chapter, you should know the definitions and the meanings
of key terms, and be able to put them into context. Also, look at the
list of terms and short questions on the Some
Importants Terms and Concepts page.

