- Know the n-firm concentration ratio and the Herfindahl index COLD including how to calculate each and the differences between the two. 2) Know how to calculate margin call trigger prices for a margin purchase and a short sale. 3) Know the different types of indices and how to calculate each (price-weighted, market cap-weighted, equally-weighted, etc.) 4) Know the 3 forms of market efficiency COLD and the anomalies associated with each. 5) Know technical analysis contrarian and follow-the-smart-money strategies COLD (do not mix up the credit and debit balances) 6) Know Porter’s 5 forces COLD 7) Know how to decompose ROE using the traditional DuPont and the extended DuPont – be able to calculate each component and know what each ratio is. 8) Know how to calculate growth rate of a firm (g= rr x ROE) – COLD!!! 9) Know the factors that influence the required rate of return 10) Know Gordon Growth model COLD 11) Know 2 stage DDM COLD 12) Know when to use Gordon and 2 stage DDMs 13) Know the strengths and weaknesses of multistage growth models (at least two) 14) Know how to calculate P/E and how to get P/E ratio from constant growth DDM formula 15) Know the industry life cycle stages COLD 16) Know that for margin transactions, the leverage factor is calculated as 1/margin percentage and that the levered return is calculated as HPR x leverage factor.