I don't know about the other seminars, but if you attend the seminars I
am teaching in Chicago & San Antonio you will receive several hundred
additional questions, all with full solutions, including questions I
have written (about 10 per chapter), questions pulled from real life
events, true/false and multiple choice questions (about 30 per chapter)
and selected questions from the textbook.
But for those of you who don't want to or cannot attend, here's some
advice - get a copy of the Study Guide, which has a lot of questions
with solutions (though many errors, so be careful, especially with the
options chapter) or go to a bookstore (or AMAZON.COM) and purchase
ANOTHER Corporate Finance textbook (I recommend the ones by Ross,
Westerfield & Jaffe or by Damodaran). These books cover virtually the
same material and have a lot of very good questions with solutions.
Good luck.
> -----Original Message-----
> From: Mike Gunn [SMTP:GUNN_MI@WillisCorroon.COM]
> Sent: Tuesday, August 18, 1998 9:14 AM
> To: studygroup5b@lists.casact.org
> Subject: Re: Chapter 9 Problems
>
> Because there are no other answers in the text, I have only been doing
> the
> quizes. If you're doing the other problems, you'll probably get that
> 1-point more than those of us who are merely trying to pass. That's
> the
> goal.
>
> However, in response to your questions:
>
> (1b) Since beta is the measures a stock's CHANGES relative to the
> market,
> the stock whose changes were most in line with the market would be the
> one
> whose beta was closest to the market beta. your selection of
> Mississippi
> Power Co (the second one) is correct. Following this logic if a
> company had
> the highest percent of market risk (R-sq), it would not necessarily be
> most
> closely related as regards changes in price. In the absence of
> Mississippi
> Power, Minerals Technologies with beta=1.06 most closely relates to
> market
> changes. However, its R-sq is only .02.
>
> (2) The best forecast of alpha is the estimate of the y-intercept
> using
> least squares regression.
>
>