Topics You're Banking on Not Being On Exam completely, hypothesis, testing, banking, related

burning0spear

The things you're banking on not being on there, and if they are, you chalk one up for the bad guys. EDIT: For the record, I know many of these will be on there, but if I have to completely guess on like 30 questions, that's only 20 wrong.

For me:

Covariance of Joint Probability Function

Covariance of Portfolio with more than 1 risky asset

Most of hypothesis testing

Calculating Beta

CML Equation

Biases related to index weightings (just don't get the "downward bias" stuff)

Currency Swaps (I might be able to give it a go)

CMO and MBS stuff (always seem to get this question wrong)

Put-call parity

Other than those, I think I'm ok. What are yours?



Edited 1 time(s). Last edit at Friday, June 5, 2009 at 03:36PM by billy22g.

kmf229

DTL and DTA

Qualities of FS framework and all these words that you can use interchangeably... Consistent, Timeless, Transparent, Comprehensive, Relevant, Reliable, Comparable...

I know it's a big stretch, but I also hope there's no IFRS vs. GAAP.

Beatnik

billy22g Wrote:
-------------------------------------------------------
> tfc Wrote:
> --------------------------------------------------
> -----
> > country risk premium,
> >
> > Project Beta (PB= AB {1+ (1-t) d/e} from one
> to
> > another
> >
> > min and max value for European, Americal put
> call
>
> Dude, CRP is VERY easy. Don't skip that one. If
> you know the CAPM, then just add CRP to the Market
> Risk Premium in the CAPM equation. So if the
> market risk premium is 5% and CRP is 3%, then it
> adjusts like this:
>
> E = RFR + B(8%)
>
> Or if instead they give you the market return and
> RFR, it looks like this:
>
> E = RFR + B(Em - RFR + CRP)
>
> Don't give away points on that.

Sometimes to calculate the country risk premium from sctratch they will give you the standard deviations of the foreign country's bond and stock markets.

Londonrocks

Topics I expect not to be on the exam:

Ethics
Quantitative Methods
Economics
FRA
Equity
Fixed Income
Derivatives

Topics I expect to be heavily weighted on the exam:

corporate finance
AI
PM

Good thing I didn't study any of those crappy topics and spent all my time on AI, that's really going to drive it home for me.

(If you don't know i'm joking by now, you need a break).

scr879

Swaps. I seem to have memorized alot of the equations i didnt initially get somehow. Im sure my brain made way for them by deleting historical sports scores, childhood memories, and names of family members from my brain.

Finalnub

well for me its more like those questions with effects on ratios due to capitalizing and expensing, financing or operating the lease...freaking mental trip!

draz

put call parity NOT on the exam.... you've got high hopes

kd26gioi

tfc Wrote:
-------------------------------------------------------
> country risk premium,
>
> Project Beta (PB= AB {1+ (1-t) d/e} from one to
> another
>
> min and max value for European, Americal put call

Did you use Schweser? I thought they explained the min/max for options very poorly.

JRossSter

Bayes Theorem.

johnnyBuz

yes, I did use the schweser,

Agree with the explanation.

All I get out of it, is how to compute the min and max value for both european/american.

other than that, I'm completely clueless.