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Category Archives: course-related

Items Posted

27-Aug-10

A few items have been posted: Answer key for last week’s exam. Beta Mgmt. Co. case spreadsheet (please download for tomorrow’s class). A review of regression output variables. Review these for tomorrow – we will be going through all three. They are in the sidebar to the left. addthis_url = ‘http%3A%2F%2Fblog.arnavsheth.net%2F2010%2F08%2F27%2Fitems-posted-2%2F’; addthis_title = ‘Items+Posted’; addthis_pub [...]

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Bonds, Bonds, and Bonds

27-Aug-10

The bond market is booming, with investors (some say) diving into safe securities, driving bond prices up and yields down. In addition, the Fed has kept interest rates low for one of the longest periods in history. As a consequence, lots of interesting things are happening in the bond markets. For instance: Companies are issuing [...]

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Items Posted

31-Jul-10

Class, I’ve posted to the blog (see left, under ‘Lecture 4′): The answers to Exam 1 A spreadsheet with: Amortization tables for Problems 4-20a,b,c, and 4-29. Let me know if you have any questions. addthis_url = ‘http%3A%2F%2Fblog.arnavsheth.net%2F2010%2F07%2F31%2Fitems-posted%2F’; addthis_title = ‘Items+Posted’; addthis_pub = ”;

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Your Personal Discount Rate

28-Jul-10

Scientist Jeff Schweitzer has an interesting and unique, but disturbing (and very real) application of the time value of money concept. He says environments in developing countries are being destroyed because of the infinite discount rates of their starving populations. They prefer the immediate provision of (say) fish from the sea, rather than the distant [...]

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Good New-Bad News

26-Jul-10

James Surowiecki (over at the New Yorker), wrote about financial illiteracy in the issue from a couple of weeks ago. The bad news is that we Americans are clueless about finance, and particularly, our personal finances: The depth of our financial ignorance is startling. In recent years, Annamaria Lusardi, an economist at Dartmouth and the [...]

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Welcome Managerial Finance Students!

21-Jul-10

It was nice meeting you all last week. I hope you enjoyed it as much as I did. A couple of things: I mentioned last week, that I was on the fence about you using Excel for all your calculations. Well, I have hopped over the fence and decided that you may use Excel for [...]

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FAIM 608: Spreadsheets Uploaded

03-Jun-10

I’ve uploaded some spreadsheets to help you with: Understanding conversion factors. Convexity adjustments. Solving Problem 3.23. Understanding the relationship between futures and expected spot using CAPM (from Chapter 5). See the sidebar to the right (Lectures 6, 7 and 8). I’ll be talking about #s 1, 2 and 3 in class today. See you then. [...]

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FAIM 608: Hunt Brothers (Japanese Version) And Copper Hoarding

13-May-10

If you thought the Hunt brothers story we discussed in class had a moral which was implemented, think again. It was repeated almost two decades later, with very similar consequences. This time though, it wasn’t silver, it was copper. And it wasn’t the US, it was Japan. And the firm was in on it. And [...]

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An Index for Forward Rates, FRAs in South Africa

27-Apr-10

This has to do with our discussion of forward interest rates, and forward rate agreements (FRAs), in class last week. Two interesting news items: Firstly, about a year ago, Standard & Poor’s came out with a number of country-specific forward interest rate arbitrage indices, that: …model the outcome of a forward interest rate arbitrage strategy that [...]

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And a welcome to FAIM 608 also!

18-Apr-10

FAIM 608 students – welcome to my blog. I have posted links to the futures handouts we used in class. If you have any questions, please feel free to email me. addthis_url = ‘http%3A%2F%2Fblog.arnavsheth.net%2F2010%2F04%2F18%2Fand-a-welcome-to-faim-608-also%2F’; addthis_title = ‘And+a+welcome+to+FAIM+608+also%21′; addthis_pub = ”;

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