Co delat?

1
Co delat?

• What do we do?

2
Scores on Midterm

• lt 60 4
• 60 lt y lt 65 6
• 65 lt y lt 70 4
• 70 lt y lt 75 6
• 76 lt y lt 80 2
• gt 80 2

3
Scores on Question 1
4
Scores on Question 2
5
Scores on Question 4
6
Scores on Question 5
7
Potential Causes for Poor Performance

• Unexpected questions
• Lack of proper preparation
• Lack of problem solving skills

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Unexpected questions?The Evidence Quote from FAQ

• One media article-based question on Firm
  Objectives (Chapter 2). 
• One question on present values (material from
  Chapter 3) however, this material could be part
  of another question as well.
• One question from Chapter 4, which, very likely,
  will be on the capitalization of RD and the
  capitalization of lease payments, as well as the
  modifications to operating earnings due to these
  computations (p. 90 and 91).  (I will not ask any
  questions on Statement of Cash Flows, or on the
  financial ratios.)  

9
Unexpected questions?The Evidence Quote from
FAQ (Contd.)

• One quantitative question on the computation of
  portfolio mean returns and variances, and on the
  computation of covariances and standard
  deviations of returns, from scenarios.
• One question on risk and return, including
  related topics such as diversification, the CAPM,
  etc.  This question may be media article-based
  and/or quantitative.

10
Unexpected questions?The Evidence Format of Exam

• One question on Firm Objectives (Media Article
  based)
• One question on Diversification (Media Article
  based)
• One question on covariance computation
• One question on capitalization of lease expenses
• One question on present value computation

11
Potential Causes for Poor Performance

• Unexpected questions
• Lack of proper preparation
• Lack of problem solving skills

12
Unexpected Questions?The Conclusion

• Unlikely!

13
Lack of Proper Preparation The Evidence

• I announced that there would be a question
  similar to Q. 3, and the question was
  straightforward.
• On Q. 3, I gave 20 points for saying pretty much
  anything that made some sense.
• Yet, 8 students out of 23 got 20 points or less
  on Q. 3

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Lack of Proper Preparation The Evidence

• Subpart (a) on Question 1 only required you to
  know the definition of covariance
• Subpart (c) required you to know when beta would
  be used to measure risk, and when standard
  deviation, something that we emphasized time and
  again in class, and went to the heart of the
  entire discussion of risk.
• I gave 5 points for answers that made minimal
  sense.
• Yet, 14 out of 23 students got 20 or less out of
  30

15
Potential Causes for Poor Performance

• Unexpected questions
• Lack of proper preparation
• Lack of problem solving skills

16
Lack of Proper Preparation The Conclusion

• Very, very likely, for at least half of the
  students in class.

17
Lack of Problem Solving SkillsThe Evidence

• The basics of Q. 4, i.e. present value, should be
  known to everybody.
• Subquestion (a) was direct
• I was very liberal in awarding points.
• Nevertheless, 16 out of 22 students got 13 points
  or or less.

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Lack of Problem Solving SkillsThe Evidence

• The first part of Question 3 (capitalizing
  operating lease expenses) was straightforward
  the only complication was that there was a lot
  of additional information.
• Yet, only two students attempted it.
• One student complained that we had not done
  balance sheets
• Also specifically question with balance sheet,
  etc. Never even was mentioned in class of were
  told how to do.

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Potential Causes for Poor Performance

• Unexpected questions
• Lack of proper preparation
• Lack of problem solving skills

20
Lack of Problem Solving SkillsThe Conclusion

• Clearly, a problem for most of the students in
  class.

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What then must you do?

• Work harder on assigned material
• Come prepared to class, and ask questions.
• Talk less in class.
• Come see me after class with questions.
• Participate more on WebBoard.

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What must I do?

• Be more willing to field questions.
• Do more problems in class.
• Give more problem assignments.
• Other?

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How you can help me

• Tell me what specifically is difficult for you.
• Follow it up with specific suggestions as to what
  I can do to help you.
• Show me that you mean it by doing the things that
  I am asking you to do.