Question 1. How would you use the present and future value techniques in preparing a financial plan for retirement?
How would required rates of return affect your decision? Explain your reasoning.
Question 2. What is a loan amortization schedule?
How would you use it to determine your loan interest rate?
What factors would impact your choice between two loans?
Question 3. What are the three key inputs to the valuation model?
How would you determine the valuation of an asset?
How would the intrinsic value differ from the market value?
Question 4. Describe the free cash flow valuation model and explain how it differs from the dividend valuation models. What is the appeal of this model? Give an example of how you would use this model.
Question 5. What is the impact of international assets on a portfolio?
Is there more or less risk?
Question 6. What are two types of risk involved in a portfolio or a security? Give an example.
Question 7. Explain the term Beta in determining risks in a portfolio or security.
Question 8. What is the CAPM? When would you use it?
Question 9. What is the SML? When would you use it?
What is the relationship between the CAPM and the SML?