1. avatar says

    Is it true that if the B=0.8 then it means that it’s 20% less Risky then the Market, So the Premium we want will be 20% less then the Market(i.e 8%) that’s why in Example No.2 we Subtract 20% then the Market Premium(i.e 8%)
    Ex= 20% of 8 is 1.6
    The Premium we want will be 6.4%

  2. Profile photo of sonria says

    I know you’ve shown us how to calculate Beta and you said that the examiner is not likely to ask us to calculate Beta but I was told by my workplace mentor that if beta is not given, then make a note to the examiner that I am assuming Beta is 1 and continue as such… Will this cost me any marks?

    • Profile photo of John Moffat says

      You will either be given beta, or you will be asked to find beta by using the formula backwards (although this is not so likely).
      You certainly will not be asked to calculate beta from other information – that is not in the syllabus for F9.

      However – and this applies to all questions – if for any reason you cannot find a figure you need (probably because it is always harder in the exam with time pressure and panicking) then do invent a figure so you can still prove that you know what to do with it.
      You will lose marks, but nowhere near as many marks as you would have lost if you just gave up on the question.

  3. Profile photo of Zohaib says

    sir, although i am demanding a lot but i know you are generous enough to cope with it…ECONOMIC ENVIRONMENT is a tough theory, If you can assist us by throwing a lecture…PLEASE its a humble request….

  4. avatar says

    it’s always lovely listening to you sir, so you don’t have to feel guilty about your chat. and in fact it keeps me wide awake 😛
    lots of sincere wishes for you, thanks a lot for your wonderful and generous services.

  5. avatar says

    i find these series very helpful to my success in f9. i am sure any body can pass with it. now am studying p4, i have go over it another time to solidify my basis.
    thanks to the entire team of opentuition

  6. avatar says

    This is beyond any human imagination, Indeed a revelation. You absolutely break the concepts like an Angel Joe. You are indeed a supernormal and exceptional blessing to us John. May the Almighty God add his abnormal blessings upon you- Great John.

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