Payoff from the online feedback form

From a student input on the online feedback form:

"Please provide some sample problems/questions we can use to test our knowledge. I realize that may be a little juvenile to request, but in discussing with classmates it would seem that most have that same concern that we may be overestimating our understanding of the material. We do not want graded homework..."

You asked, so here you go:

1. What are some of the assumptions behind CAPM? How well are they met? How might they matter?
2. Be able to state current state of CAPM.
3. Why do we study CAPM given it is probably wrong?
4. What is significance of the Fama-French three factor model?
5. Why are assumptions more important in valuing longer term assets?
6. Graph the long term historical relationship between risk and return of different financial assets?
7. What is Yield to Maturity? How do you calculate it?
   
8. Be able to calculate duration and modified duration.
9. What inputs change the duration of a fixed income asset. How? For instance, two bonds, equal maturity and both selling for par. One is rated AA and one is rated BA. Which probably has a longer duration and why? (hint higher coupon, shorter duration ceteris paribus)
10. What is a perpetuity? Annuity?
11. How does one get from Sensitivity Analysis to Scenario analysis? What is the difference between each?
12. What is the price of a 5 year bond that pays a semiannual coupon payments, 4% coupon bond if market interest rates are 5% and pay value is $1000. Answer: $956
13. What does a tornado diagram do?
14. A callable bond gives the _______ the right to ______ at certain points of time.
15. The main rationale for callable debt is???
    
16. Bond investors would prefer _____ debt. (non callable)
17. The manager-shareholder conflict is often called an ________ problem. (agency cost)
18. Why is capital budgeting and valuation essentially the same thing? (Think of valuation as capital budgeting with zero cost, or both use present value of DCF).
19. What can ratios do? What can they not do? How can ratios be used internally and externally?
20. Give examples of stakeholder conflicts
21. Why are shareholders so important?