I5.401 Recitation
Extra Session: Final Exam Review
General Advice
: Read carefully : Show your work! Answers only give you partial credit : Write down the formulas you use : Draw timelines for cash flows : Make sure you apply the annuity/ perpetuity formulas correctly -- Example:
Formula refers to value in t = 0
A
A
A
A
A
t=0 t= l
t=2
t=3
t = 4
: State your assumptions : Leave plenty of decimal places for interest rates (e.g., 1.2345%)
Sample Final Solutions
QI - True or False
Q2 - Present Value
Q3 - Fixed Income
Q4 - CAPM
Q5 - Common Stock
Q6 - Forwards & Futures Q7 -- Capital Budgeting Q8 - Portfolio Theory / CAPM Q9 -- Portfolio Theory QI0