PAK?

[PKlove]

is one being done?

[Badger484]

Normally somebody posts their answers and then everyone discusses ones that they disagree on

[Badger484]

1 A 26 C
2 A 27 B
3 D 28 A
4 B 29 E
5 A 30 B
6 B 31 D
7 C 32 D
8 C 33 C
9 C 34 E
10 A 35 B
11 E 36 D
12 C 37 A
13 A 38 A
14 B 39 C
15 D 40 E
16 A 41 B
17 D 42 D
18 B 43 D
19 A 44 B
20 A 45 A
21 C 46 D
22 E 47 B
23 B 48 A
24 E 49 C
25 E 50 D

[jenn3539]

Here's mine:

1 A
2 A
3 D
4 B
5 D
6 A
7 C
8 C
9 C
10 A
11 E
12 C
13 A
14 B
15 D
16 A
17 D
18 B
19 A
20 B
21 C
22 D
23 B
24 C
25 E
26 C
27 B
28 A
29 E
30 B
31 B
32 D
33 D
34 E
35 B
36 D
37 A
38 C
39 B
40 E
41 B
42 D
43 D
44 B
45 A
46 B
47
48 C
49
50 D

[carrytheCrøss]

Only questions for which I don't have either two of you's answers are 12, 13, 18, and 45. I very easily could have missed these, though missing #45 would be strange since this appeared very straightforward.

Good to see the agreeance, though.

[Badger484]

45 should be E. I should have read more carefully

[J_C]

We have different answers for #6. I didn't know how to do it.

[mreevit]

for 45 they give the market rate, not the market premium... you have to subtract. If you got E I agree with you.

[mreevit]

for #6, beta for asset, old rate was 11%, irrelevant, new coupon rate = 9%. Since the 9% is the coupon (current) it is safe to assume that is also the yield rate. (.09-.07)/.06 =1/3

[DudeMan]

comparing all the answer keys, looks like i scored in the lower 20's. Not bad for doing 3 homeworks, no readings, and 2 hours of cramming last night. Also looks as if random guessing only gave me 1 correct answer (out of 18)

[J_C]

That might be a pass -- I don't think 70% is the real mark. I'm not even sure how carefully they grade these exams.

[td25er]

45 is definitely E

[DudeMan]

That might be a pass -- I don't think 70% is the real mark. I'm not even sure how carefully they grade these exams.

were you referring to me? pass with 45% correct? if that was ajoke then haha, but if you're serious then thats awesome.

[J_C]

I've heard of people who definitely got below 35 and got their results back with 70% - pass.

[ebony]

think i got at least THEE wrong!

NEAS (or should I say Racheal and Jacob) is/are awesome!

[sifiasco]

Another data point for ya:

A
A
C
B
D
B
C
C
C
A
E
C
C
B
D
A
D
B
A
B
C
E
B
C
E
C
B
A
E
B
B
D
C
E
B
D
A
A
E
E
B
D
D
B
E
D
B
A
C
D

[mreevit]

Do they ever post answer keys?

[jenn3539]

think i got at least THEE wrong!


LOL

My favorite was, "For a call option, the investor pays the strike price to exercise the option. For a call option, the investor receives the strike price to exercise the option."

[td25er]

i think 5 is D, 20 B, 24 E, 31 B, 33 D, 38 A, 48 A

[Bison]

I also got E for 45.
Why isn't #13 C? Wnen you buy an option, you know the stock price (A.)

[td25er]

I also got E for 45.
Why isn't #13 C? Wnen you buy an option, you know the stock price (A.)

i got C for 13 too, but wasn't sure

[mreevit]

think i got at least THEE wrong!


LOL

My favorite was, "For a call option, the investor pays the strike price to exercise the option. For a call option, the investor receives the strike price to exercise the option."

haha noticed that too.

OK...

from the 3 sheets given and mine, there are 31 that we all agree on,

1 A
2 A
3
4 B
5
6
7 C
8 C
9 C
10 A
11 E
12 C
13
14
15 D
16 A
17 D
18
19 A
20
21 C
22
23
24
25 E
26 C
27 B
28 A
29 E
30 B
31
32 D
33
34 E
35 B
36 D
37 A
38
39
40 E
41 B
42 D
43 D
44 B
45
46
47
48
49
50 D


and 39 that at least two agree with me

1 A
2 A
3 D
4 B
5
6 B
7 C
8 C
9 C
10 A
11 E
12 C
13
14
15 D
16 A
17 D
18
19 A
20
21 C
22
23
24
25 E
26 C
27 B
28 A
29 E
30 B
31 B
32 D
33 E
34 B
35 D
36 A
37 A
38
39 E
40 B
41 D
42 D
43 B
44
45
46 D
47 B
48 A
49 C
50 D

[mreevit]

Anybody else care to give me more data?

[carrytheCrøss]

think i got at least THEE wrong!

NEAS (or should I say Racheal and Jacob) is/are awesome!
Nomination for best VEE Finance post to date. I certainly chuckled. Hope you receive some case for passing, ebony!

I also got E for 45.
Why isn't #13 C? Wnen you buy an option, you know the stock price (A.)I thought the same thing. You certainly would know today's stock price, just not the price at expiration.

[tables]

B ?
A
D
D ?
E
B
C
C
C
A
E
D ?
C
C ?
D
A
D
B
A
A
C
E
B
C ?
E
D ?
E
A
E
C ?
B ?
D
C
E
B
D ?
A
A
E
E
C
D
C
B
E
D
B
A
C
D

[Bison]

Here goes, although I know a decent number are incorrect now:

1. A
2. A
3. D
4. D
5. E
6. B
7. C
8. C
9. C
10 A
11 E
12 C
13 C
14 A
15 B
16 A
17 D
18 B
19 A
20 B
21 C
22 D
23 D
24 D
25 C
26 E
27 E
28 A
29 E
30 B
31 B
32 D
33 D
34 E
35 B
36 D
37 A
38 A
39 C
40 E
41 B
42 D
43 E
44 B
45 E
46 B
47 A
48 A
49 C
50 D

[The Reverend]

Anybody remember what question 13 was?

[J_C]

24 is E, right? beta is (correlation times the standard deviations of the market and the stock) divided by the variance of the market. The only thing that changes is the stock's standard deviation, which goes up 25%.

[carrytheCrøss]

24 is E, right? beta is (correlation times the standard deviations of the market and the stock) divided by the variance of the market. The only thing that changes is the stock's standard deviation, which goes up 25%.
's what I got.

[Bison]

#13)
Five input parameters affect the value of a European call option on a non-div paying stock: stock price, strike price, volatility, risk-free rate, and maturity. Some of these are known w/ certainty and some are not.

Which of the below is most uncertain?

A. Stock Price
B. Strike Price
C. Stock Price Volatility
D. The Risk-free rate
E. The term to maturity

[The Reverend]

Anybody remember what question 13 was?Which input parameter of the five given was most uncertain?
Only uncertain parameters would be volatility and risk free rate I think. You know the time, exercise and current prices. Which is more uncertain between volatility and risk free rate I didn't know for sure.

[Col323]

Here's mine...mistakes included.

1 A
2 A
3 D
4 B
5 A
6 B
7 C
8 D
9 C
10 A
11 E
12 C
13 C
14 A
15 D
16 A
17 D
18 B
19 A
20 B
21 C
22 E
23 B
24 E
25 E
26 C
27 B
28 A
29 E
30 B
31 B
32 B
33 B
34 E
35 B
36 D
37 A
38 C
39 C
40 E
41 B
42 D
43 E
44 B
45 E
46 D
47 B
48 A
49 C
50 D

[Bison]

24 is E, right? beta is (correlation times the standard deviations of the market and the stock) divided by the variance of the market. The only thing that changes is the stock's standard deviation, which goes up 25%.
's what I got.

Probably is... I didn't know, other than that it was positive. I likely just guessed wrong between the two (+5 or +25.)

[Col323]

Wouldn't risk free rate be close to the gov't bond rate?

[Bison]

Which input parameter of the five given was most uncertain?
Only uncertain parameters would be volatility and risk free rate I think. You know the time, exercise and current prices. Which is more uncertain between volatility and risk free rate I didn't know for sure.

I believe risk-free rate would be known just by looking up the price of a treasury note or something like that.

[beck]

forget about it guys, we ALL passed....
:tup: :toast: :crazy: :viola: :guitar: :rimshot: :judge:
now the uncertain result comes out on friday, lets hope we all do well on those things... :)

[mreevit]

# 10 and # 11 stock dividens. Does a 20% stock divident really mean 1 share extra for every 4 given. shouldn't it be 1 for 5?

[ebony]

# 10 and # 11 stock dividens. Does a 20% stock divident really mean 1 share extra for every 4 given. shouldn't it be 1 for 5?


HAHAHAHA

I thought 1 for 5! I solved it the way they stated it in the problem 1 for 4. Then the next problem says 10% stock div and I solved that as 1 for 10. This was by far the best typo on the exam and I could imagine it being chucked!!!

NEAS math: Jacob's score (15 correct) + Racheal's score (20 correct) = 35 correct. :toast: Jacob AND Racheal both pass!!!

[CaptainAwesome]

# 10 and # 11 stock dividens. Does a 20% stock divident really mean 1 share extra for every 4 given. shouldn't it be 1 for 5?

A 20% stock dividend means that if you have X shares, you'll have 1.2X shares after the dividend. So, if you have 5 shares, you'll end up with 6.

[The Reverend]

# 10 and # 11 stock dividens. Does a 20% stock divident really mean 1 share extra for every 4 given. shouldn't it be 1 for 5?

A 20% stock dividend means that if you have X shares, you'll have 1.2X shares after the dividend. So, if you have 5 shares, you'll end up with 6.
Wasn't the key to that question the fact that every event (split, stock dividend, cash dividend) was reinvested in more shares, so the actual MV of investors holdings never changes.

[mreevit]

# 10 and # 11 stock dividens. Does a 20% stock divident really mean 1 share extra for every 4 given. shouldn't it be 1 for 5?

A 20% stock dividend means that if you have X shares, you'll have 1.2X shares after the dividend. So, if you have 5 shares, you'll end up with 6.


I agree, but #10 said:

"...
On Jan 18, the stock pays a 20% stock dividend, whereby for each 4 shares owned the, the investor receives one additional share. ..."

seriously, wtf?

isn't this a 25% stock dividend?

[theteacher]

Here are mine. I know I got quite a few wrong. I got frustrated towards the end when I couldn't remember a couple of formulas and just guessed. Those would be the ones where everyone else agreed, or where my answer didn't match anyone's. In hindsight, I would have been better off spending more time on the practice exam problems and less time on the homework! I only had time to get through the practice problems once.

D
A
D
A
D
A
C
C
C
A
D
C
A
B
D
D
D
B
D
A
B
E
B
B
E
C
B
A
E
D
C
A
C
E
B
D
A
C
C
C
B
D
D
B
E
D
B
A
C
D

[mreevit]

A 20% stock dividend means that if you have X shares, you'll have 1.2X shares after the dividend. So, if you have 5 shares, you'll end up with 6.
Wasn't the key to that question the fact that every event (split, stock dividend, cash dividend) was reinvested in more shares, so the actual MV of investors holdings never changes.



yes you are right, the total value doesn't change, but the value of each share. If I have 5 million shares at 100 dollar and split it 2 for 1 I have 10 million at 50 dollars. Now there is a dividend after the split for 1 dollar. So I get 10 million instead of 5 million.

The question asked after the stock dividend, a cash dividend is paid out, how much is the new value of the portfolio?

[The Reverend]

yes you are right, the total value doesn't change, but the value of each share. If I have 5 million shares at 100 dollar and split it 2 for 1 I have 10 million at 50 dollars. Now there is a dividend after the split for 1 dollar. So I get 10 million instead of 5 million.

The question asked after the stock dividend, a cash dividend is paid out, how much is the new value of the portfolio?

Agreed. There were two questions very similar to one another. If I remember correctly, the first question had all events reinvested, the second question had a cash dividend at the end that wasn't reinvested.

[yoowoo]

50 questios, too many, I even did'nt have time to breath!

[td25er]

50 questios, too many, I even did'nt have time to breath!

for this reason, i thought this was a lot tougher than Spring '06 FM....i was on number 31 with 25 minutes left!! luckily the last 20 went by MUCH faster for me and i finished in time

[yoowoo]

HERE IS MINE:
1 A
2 A
3 D
4 B
5 D
6 B
7 D
8 C
9 C
10 B
11 D
12 C
13 A
14 D
15 D
16 A
17 A
18 E
19 A
20 A
21 C
22 C
23 B
24 A
25 E
26 C
27 B
28 A
29 E
30 B
31 B
32 D
33 D
34 E
35 D
36 B
37 A
38 D
39 C
40 E
41 B
42 D
43 C
44 B
45 E
46 D
47 B
48 A
49 C
50 D

[yoowoo]

I think I will take Transitional VEE exam next time. If I take NEAS, I have to take 2 exams for Economics and so many questions, that sucks.

[Stat-Man]

I don't think I did too badly. I truely believe i have approximately 5 wrong.

1. A
2. A
3. D
4. B
5. D
6. B
7. C
8. C
9. C
10. A
11. D
12. C
13. C
14. B
15. B
16. A
17. D
18. B
19. A
20. B
21. A
22. A
23. B
24. E
25. E
26. C
27. B
28. A
29. B
30. B
31. B
32. D
33. A
34. E
35. B
36. D
37. A
38. A
39. C
40. E
41. B
42. D
43. D
44. B
45. E
46. D
47. B
48. A
49. C
50. D

Im unsure of #21, #22 i think is E, #33 should be D, unsure on #42, there were some other iffy ones but I still think I got most of those correct.

[mreevit]

I think I will take Transitional VEE exam next time. If I take NEAS, I have to take 2 exams for Economics and so many questions, that sucks.

Me too. Im gonna go for the BPP study manual.

[J_C]

I think I will take Transitional VEE exam next time. If I take NEAS, I have to take 2 exams for Economics and so many questions, that sucks.

Me too. Im gonna go for the BPP study manual.

Come on - NEAS just seems like more work, but it's the easier option by far.

[The Reverend]

Come on - NEAS just seems like more work, but it's the easier option by far.

I thought it was pretty easy too. If you did the sample set of problems, it was pretty much identical to those. I was done in an hour and 15 minutes. Some of the questions had a bunch of info you didn't need, so if you'd done the practice set, you could filter that out quickly I thought.

[beck]

Come on - NEAS just seems like more work, but it's the easier option by far.

I thought it was pretty easy too. If you did the sample set of problems, it was pretty much identical to those. I was done in an hour and 15 minutes. Some of the questions had a bunch of info you didn't need, so if you'd done the practice set, you could filter that out quickly I thought.

same here... i mean, the final exam questions even have hints?? i've never seen that kind of treat in any other places, you have to say it's easy...
but they got some good money out of my pocket as well... :oops: but still seems like a reasonable trade-off for me... :crazy:

[dedalusx]

Here's a summary of what people have so far... (my answers which are all, by definition, correct aren't posted yet because I left 'em at work.)

Question Answer Confidence
1……..… A…….... 75.0%
2……..… A…….... 100.0%
3……..… D…….... 87.5%
4……..… B…….... 62.5%
5……..… D…….... 62.5%
6……..… B…….... 75.0%
7……..… C…….... 87.5%
8……..… C…….... 87.5%
9……..… C…….... 100.0%
10……..… A…….... 87.5%
11……..… E…….... 62.5%
12……..… C…….... 87.5%
13……..… C…….... 62.5%
14……..… B…….... 50.0%
15……..… D…….... 75.0%
16……..… A…….... 87.5%
17……..… D…….... 87.5%
18……..… B…….... 87.5%
19……..… A…….... 87.5%
20……..… B…….... 62.5%
21……..… C…….... 75.0%
22……..… E…….... 50.0%
23……..… B…….... 87.5%
24……..… C…….... 37.5%
25……..… E…….... 87.5%
26……..… C…….... 75.0%
27……..… B…….... 75.0%
28……..… A…….... 100.0%
29……..… E…….... 87.5%
30……..… B…….... 75.0%
31……..… B…….... 87.5%
32……..… D…….... 75.0%
33……..… C…….... 37.5%
34……..… E…….... 100.0%
35……..… B…….... 87.5%
36……..… D…….... 87.5%
37……..… A…….... 100.0%
38……..… A…….... 50.0%
39……..… C…….... 62.5%
40……..… E…….... 87.5%
41……..… B…….... 87.5%
42……..… D…….... 100.0%
43……..… D…….... 50.0%
44……..… B…….... 100.0%
45……..… E…….... 87.5%
46……..… D…….... 75.0%
47……..… B…….... 85.7%
48……..… A…….... 87.5%
49……..… C…….... 100.0%
50……..… D…….... 100.0%

This is of the 9 sets posted so far.

[carrytheCrøss]

Thanks for doing this, dedalusx.

Only one I really have issue with (and this is not to suggest that I missed none) is #24, and I will simply re-post J_C's explanation, with which I agree:


24 is E, right? beta is (correlation times the standard deviations of the market and the stock) divided by the variance of the market. The only thing that changes is the stock's standard deviation, which goes up 25%.

[Bison]

I hope that PAK is right. I missed 14... whew

[theteacher]

I hope that PAK is right. I missed 14... whew

Ha! Me too. According to the PAK, I missed 15. Eeek!

[Distracted]

Thanks for doing this, dedalusx.

Only one I really have issue with (and this is not to suggest that I missed none) is #24, and I will simply re-post J_C's explanation, with which I agree:


24 is E, right? beta is (correlation times the standard deviations of the market and the stock) divided by the variance of the market. The only thing that changes is the stock's standard deviation, which goes up 25%.


I agree.

[carrytheCrøss]

Just for future reference to anyone who gets ahold of the Fall 2006 Final Exam, the PAK key was correct on all questions except #24; its correct answer is E. (I believe this based on my exam result.)

[dedalusx]

...but I'm skipping both. I memorized the definitions, but those formulas are just to unwieldy for me to memorize. Too much important stuff would be forced out the other ear...