The test will consist of 8-10 short answer/short problems and will focus on the material that we have covered in class and will stress what we have covered after our first test. Therefore, focus on the material beginning with Risk & Return and continuing through the end of our class on August 5. While the test is not officially cumulative, knowledge of the material from the first portion of the class is important when addressing our more recent issues. For example, to solve for bond value, we need to understand the time value of money calculations from the first portion of the course.
Some parts of the test will involve no calculations at all. The format of the questions will be similar to that of the extra problems that I have distributed. Please read the instructions to each question carefully. Some of the questions have specific limitations regarding the length of the response.
You may prepare a one-page (front & back) sheet of formulae. Please include just the formula and the definition of each variable in the formula. You may use calculators and may use your computers to do calculations. You may use Excel-based templates that you have specifically prepared to do calculations.