Would someone be able to email me the excel sheet - jskhambhaita@hotmail.com. Thanks!
Would also appreciate if someone emailed the formula Excel sheet - (kuszynski@gmail.com). Many thanks.
Don’t forget this bad larry Market Model predictions Variance(i) = B(i)^2*Variance(m) = variance(Ei) Cov(ij) = Bi*Bj*variance(m) Christ that’s hard to type
Think there was a typo, should be Variance(i) = B(i)^2*Variance(m) + variance(Ei)
Had trouble with the formatting and didn’t bother to insert the std deviation symbol. I just substituted D for std deviation. B(i) ^2 * D(m) ^2 + D(e) ^2 So there’s no typo, D^2 = std dev squared = Variance. Also, I happened to know that the error term was related to asset i so didn’t bother to include the extra letter on the last term.
not sure if this a top tier formula, maybe a seconday one, but i’ve run into twice on different practice exams and i couldn’t recall it, so i made it a notecard. expected dividend: previous div + (expected increase in eps)x(tgt payout ratio)x(adjustment factor) where adjustment factor = 1/number of years it will take to reach tgt ratio.
Yeah that’s a good one. I think it was on schweser 1 PM exam.