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#263




The exam was fair. I felt very confident my first ten, then skipped around a bit.
I'm almost certain I passed. I'm going to finish up my last VEE and study for exam C. Best of luck to everyone, it's been a fun ride with a lot of ups and downs. cheers, John
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Last edited by Johns; 11252017 at 08:22 AM.. 
#265




Quote:
I think a reasonable workaround may be to change details/numbers so that it's no longer an "exam question." Someone who knows more about this, correct me if I'm wrong.
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#266




There was one involving sharpe ratio that for some reason I didn't get any of the answer choices, but I just chose the closest answer choice which was like 0.07 off.
Also anyone know if the borrowing rate is typically known or not? 
#267




I'm not sure what the context is, but if the BlackScholes framework is assumed, then the borrowing rate = riskfree rate, since one of the assumptions under the BlackScholes framework is that investors can borrow or lend at the riskfree rate.

#269




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 Expected Stock Price at time T = S(0)*exp[(alpha  delta)T]  Forward Price at time T = S(0)*exp[(r  delta)T] Assuming both alpha and r are greater than the dividend yield, since alpha > r, the expected stock price is greater than an equivalent forward price. 
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