Last Minute Help: Accg 253 (2 Viewers)

[choco]

cml measure returns to toal risk ...sml measures returns to systematic risk...right?....
you think they'll focus heaps on wacc?....howabout rights issues?...hate those the most!

 

[Orange Juice]

i think theyll have something on wacc ...
the thing im hoping for is advantages of IRR,NPV all that shit...
fewer calculations is better cuz theres too many formulas

 

[Grizzly]

CML and SML dont really make sense... its something about investing on those lines to get the most efficient portfolio...

CML is a portfolio of risky and risk free assets that are plotted against expected return and risk.
SML is the linear relation between systematic (non-diverisfiable risk) and expected return.

 

[Orange Juice]

griz: isnt there a formula that i can unleash to get full marks?

 

[redruM]

advantages of NPV and IRR????


i am so fucked. so so fucked.

 

[Orange Juice]

ad/disadvantages... also of AEC or something and ARR, and all those shitty things... theres like 50 of them


what does long and short mean?

 

[yenta]

I think I'm in for a long night. I'm revising the chapters in order of lowest to highest, and I'm only up to 13

 

[Orange Juice]

really? im still up to 11! im not even half way yet

 

[redruM]

AEC is a chance i reckon of being in there.

it is easy. you have to compare the equivalent c'flows for 2 different investments.
asset 1 = 5 yrs. asset 2 = 3 yrs.

find npv for both (chances are that the will have diff c'flows for each yr. now use the present value equation to find the coupon payments for 5 yrs. the coupon payments are the c'flows. i think of as standardising the c'flows.

i love ch 7 and 8 stuff.

options...someone want to give me a crash course?

 

[Grizzly]

options...someone want to give me a crash course?

Here yah go

 

[Orange Juice]

griz is that actually useful? cuz i dont want ya confusing me anymore lad...

redrum what you said was useless to me... you got me even more confused...

ok so i find the NPV for both assets... then what do i do? use small words plz

 

[Grizzly]

griz is that actually useful? cuz i dont want ya confusing me anymore lad...

Duno, i dont do accg253
First 2 should be OK, week6.pdf maybe not, depends, do you do Black Scholes ? If so, yer.

 

[Orange Juice]

we did do scholes but we dont need his formula...

dude this is the worst accounting ive ever had... it feels like having a baby

 

[yenta]

really? im still up to 11! im not even half way yet

Just finished 13...now onto 14. How thoroughly are u going through it? And how long are u spending on each? Coz I'm fully reading each chapter then doing the tute questions again, taking forever

 

[yenta]

For EMH and Portfolio Theory, have u guys gone through chapters 10 and 11 of the text? Cos I remember the lecturer saying we should be right with his lecture notes, so I dunno if there's stuff in the textbook that's not in the notes that we should know?

 

[redruM]

find npv of both..then you want to find the equal annual cashflows for each asset. ie- c'flow for for a 'common' time in yrs.

eg:
you will have NPV1 and NPV2 (you said you get it up to this point)

then do this:

NPV1 = C1[(1-(1+i)^-n)/i]
NPV2 = C2[(1-(1+i)^-n)/i]

your i and n will remain the same, and depending on your NPV1 and NPV2, you will get different C1 and C2. now, since these are c'flows for the same period of time, we can directly compare them. whatever is greater is the better investment.

 

[Orange Juice]

redrum: so if ive got Asset A with 3 years life... B with 5 years life..

i can use N as 3... since they both live up to at least 3 years...
and R should be the same...

wtf am i even finding? cuz ive got 2 different NPVs...

yenta: im reading the textbook because i realised how lil i knew about chp10/11... i noticed that about the strong markets and semi strong markets wasnt in the notes was it?
right now im still on 11 because i havnt really done much... but ive just done the self test questions and now im about to do the questions at the end of the chapter... (theres answers to some at the back) then ill move onto the tute questions then to the next chapter...
god accounting sucks my balls

 

[Grizzly]

god accounting sucks my balls

none of this sounds like traditional accg to me

 

[Orange Juice]

mate all this theory stuff is useless in real life...
companies dont give investors BETA value... i mean... i dont think they do

 

[yenta]

mate all this theory stuff is useless in real life...
companies dont give investors BETA value... i mean... i dont think they do

Lol I don't give a shit about any accounting stuff, cos I don't want to be an accountant...so all of it is useless to me