CFAI MOCK QUESTION (disappointed) particular, posting, question, finance, expect

jawz

Ok, i don't know if you agree with me but i am really disappointed with the question structures of the mock exam and hope this is no what i will expect in the real thing. There are two questions in particular, i will not cut and paste them since there is a fine prints about posting the question on sites etc.

However for those who have taken it, my first question relates to corp. finance where they talk about unlevered beta. question 75. They say the ans. is 0.75 which is basically the project beta, the question specifially asks for unlevered beta, (asset beta). where am i going wrong?

Second question is from equity. question 90. valuing a stock based on forward looking p/e. I computed the fig. and came with 49.5 as the instrinsic value. The stock is currently valued at 50 bucks. So i choose fairly valued based on rounding it off.. to my surprise the correct answer is over-valued!!

How should one account for such question?!?!!?

Finalnub

1) I cant remember the question, but when if you say unlevered, the formula is 1/ 1+(1-tax)D/E
I think it might be the best to try and avoid thinking too much of asset beta vs project beta... Just think of the concept... To unlever you need to use tht formula.

2)I feel you on this one... I mean, something like this could be strickly due to rounding... I hope the answers are a little more varied.

draz

But on a side note, I do find some of the questions to be a little :-s... Especially my experience with the Ethics and the several mocks that I did... It seems alot of assumptions are needed for some, which sometimes contradict a an assumption for a different ethics questions on a different exam...