I am almost over checking the AF daily. Only once today. I keep replaying the fact i had 3 or so answers correct in the first pass and then since i finished PM in 2:15 i stayed and tried to check over them. Well i changed 3 answers from correct to incorrect, so it looks like i should have left right away. I didn’t change any the other direction unfortunately. k-g = Div yield instead of Equity Risk Premium FCFE= 2274 instead of 2176 P/E changed from 16.3 to 15.8, but still unsure about that one. As i said, i have just about gotten over it…almost.
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To clarify I changed from Div Yield to ERP And from 2274 to 2176
i’m fairly sure there was only one answer in the PM in the 2,100-2,300 range.
oskigo Wrote: ------------------------------------------------------- > i’m fairly sure there was only one answer in the > PM in the 2,100-2,300 range. definitely were two answers above 2000. it was something like 1700, 1800, 2100, 2200 or roughly there abouts. are we sure that 2274 is correct?
From what I recall, there was: 19xx 2104 22xx or 23xx 3xxx
Three’s a charm Wrote: ------------------------------------------------------- > To clarify > > I changed from Div Yield to ERP wait, you think ERP is wrong? how is k-g dividend yield? i must not be reading this correctly.
k - rf = ERP
so k-g is dividend yield? wow, i got destroyed on the econ section.
p = d / (k-g) => k-g = d/p = dividend yield
actually, come to think of it, i am not even sure what i put. i think i failed this test though lol.
prockets Wrote: ------------------------------------------------------- > p = d / (k-g) > > => k-g = d/p = dividend yield Took a leap of faith on this one but I could eliminate the other 3 options so I picked dividend yield! +3
Three’s a charm Wrote: ------------------------------------------------------- > I am almost over checking the AF daily. Only once > today. > > I keep replaying the fact i had 3 or so answers > correct in the first pass and then since i > finished PM in 2:15 i stayed and tried to check > over them. Well i changed 3 answers from correct > to incorrect, so it looks like i should have left > right away. I didn’t change any the other > direction unfortunately. > > k-g = Div yield instead of Equity Risk Premium > FCFE= 2274 instead of 2176 > P/E changed from 16.3 to 15.8, but still unsure > about that one. > > As i said, i have just about gotten over > it…almost. What was the actual question for k-g? I thought the question was what is the implied difference between k and the risk free rate - so I selected the equity risk premium. Was the question really what is the difference between k & g?
yes, k-g is dividend yield
Sai Wrote: ------------------------------------------------------- > yes, k-g is dividend yield I agree with what k - g is - I just thought the question is what is the difference between k and the risk free rate.
I seem to have changed about 3-5 answers from correct to in-correct. And the last one in the last second of the exam. I was done with the first pass with 90+ minutes to go. If I had left early, I might have passed. I can’t stop cursing myself!
k = rf + beta (equity risk premium) equity risk premium = market return - rf L2 Candidate Wrote: ------------------------------------------------------- > Sai Wrote: > -------------------------------------------------- > ----- > > yes, k-g is dividend yield > > I agree with what k - g is - I just thought the > question is what is the difference between k and > the risk free rate.
Sai Wrote: ------------------------------------------------------- > k = rf + beta (equity risk premium) > > equity risk premium = market return - rf > > > > L2 Candidate Wrote: > -------------------------------------------------- > ----- > > Sai Wrote: > > > -------------------------------------------------- > > > ----- > > > yes, k-g is dividend yield > > > > I agree with what k - g is - I just thought the > > question is what is the difference between k > and > > the risk free rate. I understand both how to calculate the equity risk premium and the dividend yield - my confusion is, what was the question on the test??? I though they asked the implied difference between k and the risk free rate, i…e the equity risk premium. Some are saying they asked the difference between k and g. I am simply looking for clarification on the question, not the answer.
as far as I remember it was difference between k and g.
this is a level I Q… good that I got 3+ thinks god didn’t overthink this 16.3 was the last Q I attempt, almost forgot all the LI and LII Qs - good thing is finally got the correct answer - took me at least 5 min… another 3+ if i could keep this momentum - i may have a slim chance of passing this