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 worked-out example, problem III, midterm 2)
- Understanding and manipulating the CAPM (Introductory
- Capitalizing Operating Leases (slides)
- Cost of capital (slides)
- Bottom-up beta computation (slides)
(look at worked-out 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 worked-out
assignment based on beta computations (look here
for the statement of the assignment)
See also, FIN 320, Assignment
4, Fall 2000.
Q. What will the format of
the final exam and what chapters will they cover?
A. The final will cover chapters 9-12, 14, and 18-20. Specifically, it
will cover the following topics:
- Model Choice
- Example: Problem 2, Chapter 14, Damodaran "Investment Valuation,"
- Forecasting Cashflows
- Example: Problem 5, Chapter 10, Damodaran "Investment Valuation,"
- Moving From Earnings to
- Example: Problem 4, Chapter 9, Damodaran "Investment Valuation,"
- Comparative valuation
- Example: Problem 5, Chapter 19, Damodaran "Investment Valuation,"
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 short-answer 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
Ans. Click here for more information.
Q. Can I do extra work to improve my
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
Q. What can I do to check my
understanding of the material and to prepare for the exams?
- 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
- 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
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.