Friday, October 14, 2005

Corporate finance midterm

Well, Yesterday was the midterm for a UC extension class on "Basic Corporate Finance" that I am taking. The exam was pretty straightforward except for some True or False questions regarding transaction costs as they relate to market efficiency and CAPM assumptions.

I have been enjoying this basic class - it dwells on basic issues of investments as well as corporate finance. Looks like MFE program would also offer an introductory class on Corporate finance (in January alongwith Math and Programming class), so I will have to weigh whether I need that extra class or not!!

In other news, all this news of global inflation and rising interest rates (with a possibility of recession, coupled with real-estate bubbles crashing due to changes in tax laws) is not bringing me much joy, especially since I want the market to be upbeat when I graduate and am looking for jobs. Comments?

4 Comments:

Blogger shooGu said...

Probably not a coincidence that the questions I felt least confident about were those same two, the ones that dealt with transaction costs.

I've been enjoying the class also--a nice gentle intro to finance for us.

12:32 AM, October 18, 2005  
Blogger kenshin said...

Hello there! I google'd "mfe berkeley", and your site showed up in the result. It's definitely a interesting site. Congratulations on your acceptance to the haas mfe program. it's something that I am thinking about as well.

Funny that you mentioned the corp. finance class midterm, I think I am in the same class(Thursday, downtown SF).
I felt the same way about the midterm. It's straight forward, except those 2 transaction costs problems. I guess we will see the answer tomorrow=).

11:59 PM, October 19, 2005  
Blogger derivativesgeek said...

good luck on that exam. please let us know how you did. capm isn't that difficult, where you suprised "assumption" questions appeared? This is typically the patter for exams, going as far back as Intro to Econometics, and Financial Economics in undergrade. Since we're talking about summptions, you may want to also look into Black & Scholes BSOPM vs Variance Gamm VGOPM Option Pricing Models.

- derivatives geek aka quantphd

6:35 PM, October 25, 2005  
Blogger Quantjock said...

Kenshin,

yes I am in the same class... but I havent been to class last week or will this week, since I am away on business...

3:32 PM, October 26, 2005  

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