[Anonymous]

Is it okay if I just know “risk-free rate” instead of knowing all the abbreviations? In the exam, will they tell us what the abbreviations stand for OR is it important to know them? I know the formula for cost of equity, however, I can’t keep krf, km, PMR straight.

Am I making sense? Having difficulty explaining it properly…

Thanks!

[futuremdcpa]

I would know what they mean.

Its not hard though, so I don't quiet understand the problem?

kre = krf + [bi x (km-krf)]

kRF = RISK FREE RATE

kM = MARKET Rate

Bi = Beta

If you have a question on the exam, usually they will give you the numbers needed. You just need to know what numbers go where in that formula..

REG: PASS || BEC: PASS || AUD: PASS || F: SCORE PENDING..

[Anonymous]

All of those Becker abbreviations for that chapter are completely stupid. I studied finance, and those are definitely not real abbreviations. Becker just made them up to help you memorize them except they don't help you at all. Memorizing what the actual components of the abbreviation are much easier. You don't need to know the abbreviations on the test as they're just supposed to be Becker study tools like their mnemonics.

[Anonymous]

Exactly, I don't think they are necessary at all. I feel like I have to spend extra time memorizing those abbreviation. I know the components, just having little difficulty memorizing those abbreviations.

Good to know I won't need to know them for the actual exam!

Thanks, guys!

[Author]

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