Thank you, this was ... By: oaselim. on 13 Mar 12, 10:01:23 Thank you, this was very helpful. ?
Your videos are ... By: rodctenis. on 25 Jan 12, 18:36:21 Your videos are very useful. Could you prepare some focused on services? Service sector is very important, but normally for the analysis? the models are based in those used in the goods sector and are not the same.
Thanks for the help ... By: ktkl68. on 19 Jan 12, 19:24:27 Thanks for the help. They use bottom-up? analysis and yes, I will look at some cash flow valuations and adjustments. Thanks!
Thank you, I am ... By: bionicturtledotcom. on 19 Jan 12, 01:54:51 Thank you, I am working with Manish of financetrain(dot)com on these, and we used pure PowerPoint (+ modest animations) here (camtasia in? PPT). Thanks!
thanks! fluency is ... By: bionicturtledotcom. on 19 Jan 12, 01:52:25 thanks! fluency is a whole enchilada, and I sincerely think the CFA curriculum does a good job establishing fluency. In your shoes, fwiw, I might 1. practice some use-case actual cash-flow valuations so you can speak to adjustments that analyss make; 2. I'd try to get hold of their (the firm's) research report to see? where they focus; and 3. if they cover INDUSTRIES, i would familiarize: different sectors focus on different FinStatement issues. I hope that helps, good luck!
Great video as ... By: ktkl68. on 19 Jan 12, 01:32:20 Great video as always. I have a quick question. For my junior equity research interview, the manager asked me to be FLUENT with financial statements. Could? you please tell me which areas I should focus on before I go in for the interview?
bionicturtledotcom ... By: marchesedesade89. on 18 Jan 12, 10:26:34 bionicturtledotcom is always the best ever. Really, I? could have not read the book...this is enough :)
bionicturtledotcom ... By: marchesedesade89. on 18 Jan 12, 10:26:28 bionicturtledotcom is always the best ever. Really, I could have? not read the book...this is enough :)
Very nice ... By: rkenshinn. on 18 Jan 12, 02:59:23 Very nice explanation, neat content. What? do you use to make your slides ?
@phongvo9989 @ ... By: bionicturtledotcom. on 01 Feb 12, 16:36:11 @phongvo9989 @phongvo9989 Yes, Manish (of financetrain) who is working on these with me, and I had planned to record at least one "use case" or "case study" application; if? you have other specific requests, we would love to hear them, thanks!
could? you made ... By: phongvo9989. on 01 Feb 12, 12:50:31 could? you made some tutorial for analyzing these ratios ?
Terrific, thanks, ... By: bionicturtledotcom. on 01 Feb 12, 01:19:07 Terrific, thanks, good luck with your studies!?
I'm studying for ... By: tomdilello. on 01 Feb 12, 01:18:05 I'm studying for level 1 now so these? videos have been great helpers. Thanks David!
Thank you so much ... By: bionicturtledotcom. on 29 Jan 12, 02:30:31 Thank you so much for? the support, we love to share the information.
amaaazing , thank ... By: houdapurple. on 28 Jan 12, 18:00:06 amaaazing , thank you ! very clear , and extremely helpful , i'm a finance student from? algeria and i luv what u do ^^
Liquidity is a short-term issue (I like to think of liquidity as -running out of time.- A liquidity problem per se is one that time can fix).
Liquidity ratios measure a firm's ability to meet its short-term obligations; or measure how quickly assets are converted into cash.
This is an ... By: JakDerrida. on 20 Apr 12, 09:53:14 This is an extremely high quality video. I think even Khan himself? could take some pointers from you.
pls. how to ... By: mtdonia9. on 31 Jan 12, 06:47:18 pls. how to calculate the cost of funds in banks ..... thank u? so much
It's my pleasure, ... By: bionicturtledotcom. on 27 Jan 12, 02:49:52 It's my pleasure, thank you for your nice feedback! David?
Man I appreciate ... By: farid1705. on 26 Jan 12, 04:57:46 Man I appreciate all of your videos. I have been looking for someone who is able to explain finance without making it? boring.
Thanks for everything
really i ,d like to ... By: mtdonia9. on 24 Jan 12, 21:10:07 really i ,d like to thank u for all your videos
pls i need to know about how to? calculate cost of funds in banks
included the reserve ratios
thank u soooo much
Thank you, I ... By: bionicturtledotcom. on 24 Jan 12, 17:03:37 Thank you, I appreciate it!?
Very clear and ... By: rodctenis. on 24 Jan 12, 10:17:57 Very clear and useful. Thanks for? this video
I am teaching myself R. My first goal is to plot the price-yield curve of a 10-year zero coupon bond, so I need to define the price function, and apply (i.e., lapply) the function to each element in a vector of yields. For my first step, this is a lot of fun. Very intuitive!
oh, thank you for ... By: bionicturtledotcom. on 22 Jan 12, 17:54:44 oh, thank you for help.search(), i will be using that! yes, i realize it's technically a scatter? but your ts.plot() works
@bionicturtledotcom ... By: smicha7. on 22 Jan 12, 17:41:22 @bionicturtledotcom @bionicturtledotcom Yes, your example is scatter plot - sorry for this. Also if you are looking? for any help type help.search("your word"). And maybe this might help, just google Farnsworth-EconometricsInR and choose first link.
oh, ts.plot() works ... By: bionicturtledotcom. on 22 Jan 12, 17:32:57 oh, ts.plot() works! even though it's not a timeseries. This is fantastic, i'm actually learning from youtube. I wanted to use "=" but
But? still: very ... By: Riverdale270. on 22 Jan 12, 10:01:44 But? still: very helpfull video so thanks for that!
As a MATLAB user I ... By: Riverdale270. on 22 Jan 12, 10:01:25 As a MATLAB user I can without doubt say that this would be much more intuitive in MATLAB, which is an often stated advantage of MATLAB. However, if you're used to something, I guess that's what works best for you. But I'm only going? to let MATLAB go if I really can't find what I'm looking for (not that likely) or if R or another package provides a package I need and MATLAB does not have that package... (not very likely either... but you never now). Not all econometrics is in MATLAB so we'll see
Sorry, it is a ... By: smicha7. on 22 Jan 12, 09:14:24 Sorry, it is a scatter plot, not? time series.
Hi, another great ... By: smicha7. on 22 Jan 12, 09:12:10 Hi, another great video. Your code can be simplified. You can use "=" istead of "
R! Good idea, thank ... By: AlejandroBjorg. on 22 Jan 12, 03:31:44 R! Good idea, thank you! I have been wanting to? get into R for some time.
I just opened it so ... By: bionicturtledotcom. on 22 Jan 12, 02:38:16 I just opened it so i can't say yet, i have similar questions. I sort of can already see why R is popular in Big Data. IMO Excel is not really great for large data sets. I don't know about R graphing yet? (mathematica is really strong there), but i think Excel is lame for graphing anything except the basics.
I? just opened it ... By: bionicturtledotcom. on 22 Jan 12, 02:38:03 I? just opened it so i can't say yet, i have similar questions. I sort of can already see why R is popular in Big Data. IMO Excel is not really great for large data sets. I don't know about R graphing yet (mathematica is really strong there), but i think Excel is lame for graphing anything except the basics.
I just opened it so ... By: bionicturtledotcom. on 22 Jan 12, 02:37:56 I just opened it so i can't say yet, i have similar questions. I sort of can already see why R is popular in Big Data. IMO Excel is not really great for large data sets. I don't know about R graphing yet (mathematica is really strong there), but? i think Excel is lame for graphing anything except the basics.
I just opened it so ... By: bionicturtledotcom. on 22 Jan 12, 02:37:48 I just opened it so i can't say yet, i have similar questions. I sort of can already see why R is popular in Big Data. IMO Excel is not really great for large data? sets. I don't know about R graphing yet (mathematica is really strong there), but i think Excel is lame for graphing anything except the basics.
I am learning it ... By: bionicturtledotcom. on 22 Jan 12, 02:30:54 I am learning it because it has become the leading statistics software? (i guess youtube doesn't let us link out, but TOIBE survey ranks it 19th, above SAS and matlab, among all languages). I don't think you need any prior knowledge as far as i can tell. Of course, programming backgrounds helps as usual (e.g. ,OOP)
Have you thought ... By: cwaddle. on 22 Jan 12, 02:14:10 Have you thought about how youre going to be using R? What do you need to? learn R?
Just as I also ... By: cwaddle. on 22 Jan 12, 02:11:41 Just as I also started to become fascinated by R and I've? been thinking how to us R to design a valuable product. R has very strong plotting functions, it's fairly easy to use... but I'm struggling to think of a situation where R is more useful than say spreadsheet, unless you need to do advanced stat tests and produce graph maybe. It's certainly more useful in academia.
this makes? two of ... By: geiko187. on 22 Jan 12, 01:59:19 this makes? two of us!
No, i've been a ... By: bionicturtledotcom. on 22 Jan 12, 01:40:03 No, i've been a longtime user of mathematica (and? have trained using mathematica). Is Matlab is? the same category?
Have you tried? ... By: ad2181. on 22 Jan 12, 01:32:05 Have you tried? Matlab?
Thank you, this ... By: oaselim. on 13 Mar 12, 10:01:23 Thank you, this was? very helpful.
Your videos are ... By: rodctenis. on 25 Jan 12, 18:36:21 Your videos are very useful. Could you prepare some focused on services? Service sector is very important, but normally for the analysis the models are based in those? used in the goods sector and are not the same.
Thanks for the help ... By: ktkl68. on 19 Jan 12, 19:24:27 Thanks for the help. They use bottom-up analysis and yes, I will look at some cash flow? valuations and adjustments. Thanks!
Thank you, I am ... By: bionicturtledotcom. on 19 Jan 12, 01:54:51 Thank you, I am working with Manish of financetrain(dot)com on these, and we used pure? PowerPoint (+ modest animations) here (camtasia in PPT). Thanks!
thanks! fluency is ... By: bionicturtledotcom. on 19 Jan 12, 01:52:25 thanks! fluency is a whole enchilada, and I sincerely think the CFA curriculum does a good job establishing fluency. In your shoes, fwiw, I might 1. practice some use-case actual cash-flow valuations so you can speak to adjustments that analyss make; 2. I'd try to get hold of their (the firm's) research? report to see where they focus; and 3. if they cover INDUSTRIES, i would familiarize: different sectors focus on different FinStatement issues. I hope that helps, good luck!
Great video as ... By: ktkl68. on 19 Jan 12, 01:32:20 Great video as always. I have a quick question. For my junior? equity research interview, the manager asked me to be FLUENT with financial statements. Could you please tell me which areas I should focus on before I go in for the interview?
bionicturtledotcom? ... By: marchesedesade89. on 18 Jan 12, 10:26:34 bionicturtledotcom? is always the best ever. Really, I could have not read the book...this is enough :)
bionicturtledotcom ... By: marchesedesade89. on 18 Jan 12, 10:26:28 bionicturtledotcom is always the best ever. Really, I could have not read the book...this is enough? :)
Very nice ... By: rkenshinn. on 18 Jan 12, 02:59:23 Very nice explanation, neat content. What do you use to make your slides? ?
The optimal hedge ratio tells us how many contracts to use to produce a net position with the minimum variance (but its limited by the weakness of correlation, a linear relationship metric!)
Ah, how silly of? ... By: 2009worstyearever. on 18 Jan 12, 06:00:32 Ah, how silly of? me. Thank you!
@2009worstyearever ... By: bionicturtledotcom. on 18 Jan 12, 00:41:53 @2009worstyearever yes, as the underlying is long, a long futures contract would increase the net position beta. But, if you see @7:20 , the answer here? is to SHORT ~117 contracts to approximately neutralize beta. So if market goes up, portfolio gain is offset by futures loss; if market up, portfolio loss is hedged by futures gain
David I had a ... By: 2009worstyearever. on 17 Jan 12, 23:32:53 David I had a question -- isnt buying the S&P index hedging the portfolio only one way, up? What if there is a general downturn, wont you suffer on both your portfolio and? on your 'hedge'?
good point: agreed ... By: bionicturtledotcom. on 17 Jan 12, 22:47:59 good point: agreed past prices can inform fundamental perspective; e.g., expecting a company to revert to its long term P/E.
ex post i see traces of poetry :) I am sloppy to mix growth & momentum. I meant I don't naturally invest (fear) in "growth" b/c they don't meet my primary goal to manage risk,? high expectations impounded & vulnerable (pretty much at each quarter far as i can tell) to "disappointments" ... to me, to own a high growth is to fear each quarterly result
I just wanted to be ... By: mvogt. on 17 Jan 12, 22:33:31 I just wanted to be a little poetic, but since I was semi-drunk that might not have worked so well. :)
"if i really did not believe at all in TA, then I would ignore the price? charts (is logical?)." - Yes, sort of. The only reason to care about past prices would be to set the past prices into perspective with past fundamental data.
"But, i do look at price charts (b/c i fear momentum/growth stocks)."
- I donīt understand why you fear those.
I just have a ... By: mvogt. on 17 Jan 12, 22:15:52 I just have a pretty hostile attitude towards these theories, because I think the only? guys getting richer through spreading these theories are brokers and banks which contribute nothing positive to society. Itīs hard to lose by collecting fees after all.
It is a sure thing that in a hypothetical world where these theories were nonsense, they would definately still be advocated!
If that was true, ... By: mvogt. on 17 Jan 12, 22:02:17 If that was true, then the ones reacting faster to these patterns would be the winners and those that react too late are the suckers? Obviously someone has to lose longterm wenn someone wins.
And by "investors" you mean big money professionals or whom?
I did not run any tests, but if all this was true,? wouldnīt the big players with their low latency automated systems be the winners and the "people" be the suckers?
Thanks David. I ... By: tomdilello. on 17 Jan 12, 00:49:10 Thanks David. I love these videos so please keep up the good work. I too used to think? TA was a bunch of voodoo, until it started helping me make better entries and exits.
@bionicturtledo ... By: NicosMind. on 16 Jan 12, 23:49:51 @bionicturtledo Support it in a sense of a self fufilling prophecy, Yes thats what i said. I wasnt call TA nonsense. But if you ask me a lot of what drives it is down to sfp. In 100 years time people may? change their minds about some? of the patterns. That could be just more sfp. I wonder the effect if experts taught differently?
But anyway while we have the likes of goldman sachs out there doing high frequency trading we wont have a true market place for establishing prices
I hear you. Again i ... By: bionicturtledotcom. on 16 Jan 12, 23:28:09 I hear you. Again i think your evidence bar is higher than I demand (e.g., statistical evidence for outperformance is hard to find also on the fundamental side). I was thinking? the following: if i really did not believe at all in TA, then I would ignore the price charts (is logical?). But, i do look at price charts (b/c i fear momentum/growth stocks).
that's interesting ... By: bionicturtledotcom. on 16 Jan 12, 23:26:13 that's interesting IMO, because if true, it would arguably? support theory of TA
very little. ... By: bionicturtledotcom. on 16 Jan 12, 23:24:59 very little. Apparently, just one TA question on last? exam
I see a lot of ... By: NicosMind. on 16 Jan 12, 22:47:15 I see a lot of techincal analysis as self fufilling prophecies. If people see those patterns and they think they see a buy signal. Then investors rusing to buy are gonna push? that stock up. And vice versa
as long as i dont ... By: mvogt. on 16 Jan 12, 18:22:04 as long as i dont see a support line, namely statistical 'evidence'? i cannot find resistance calling both bearshit and bullshit :-). your non-ta videos are pretty good though.
How? much TA is ... By: tomdilello. on 16 Jan 12, 05:01:22 How? much TA is actually on the level one exam?
thanks, me neither ... By: bionicturtledotcom. on 14 Jan 12, 00:27:58 thanks, me neither don't make short term trades, it takes me forever b/c i keep wanting to research.? Total agree re "rational agents" assumptions
It should be ... By: genesis213. on 13 Jan 12, 23:51:12 It should be testable though, if you look for a random sample of stocks that meet the criteria for the initial formation of one? of these patterns and then measure the outcome based on "target price". If the expected return is greater than 0 by a statistically significant amount taking into account trading costs. You could prove disprove they hypothesis. Though it would be hard to prove its not a self fulfilling prophesy driven by advocates who trade on the patterns.
Thanks for response ... By: genesis213. on 13 Jan 12, 23:44:20 Thanks for response. I generally don't make short term trades which generally means I don't consider TA at all. From an efficient market hypothesis perspective there is also the assumption of rational investors, which there is plenty of evidence against, and when considering "Black Swans" there is the question of whether any advantage would be completely eliminated in a? random event/outlier.
thanks but you? ... By: bionicturtledotcom. on 12 Jan 12, 03:25:19 thanks but you? should see the BS i did filter out for you, to get it down to 5 minutes. But i see you are unhappy so i am going to issue you a refund ... oops ... nevermind
5 minutes of ... By: nartiles. on 12 Jan 12, 03:16:27 5 minutes of continuous uninterrupted pure and? unfiltered BS!
I'm not defending ... By: bionicturtledotcom. on 11 Jan 12, 20:44:10 I'm not defending TA (I don't advocate, I am a learner primarily). I agree with you w.r.t. outperformance research, but for my own investing, i have a lower standard: i would be satisfied to add a tool that might help me, anecdotally, avert a loss (I seek outperformance indirectly by minimizing losses).? In a previous life i thought this was pure voodoo, but lately I have come around to the potential importance of volume in particular.
I did not say ... By: mvogt. on 11 Jan 12, 20:12:26 I did not say prices were perfectly efficient, they are almost certainly? not. But they are efficient enough that simple observable patterns you can find in any 5$ ebook on the net about TA can hardly yield an edge, especially not in markets with high liquidity. If you have statistically significant data indicating that any simple chart pattern can outperform the market, I would be more than happy to see it.
I don't know, i've ... By: bionicturtledotcom. on 11 Jan 12, 19:37:54 I don't know, i've learned to keep an open mind. I do have experience w/ the higher math. It's strange what some geniuses do (e.g., employ advanced copulas where sensitivity of a single assumption renders a false precision). I almost fear? "too clear by half" more than technical analysis. I used to the dismiss TA exactly as you do, but did you see the tenets? do you think supply/demand and behavior impact prices? I do. And that prices contain information. Its starts very reasonably.
lol at anyone who ... By: mvogt. on 11 Jan 12, 19:21:58 lol at anyone who is naive enough to think that you can outperform the market with this astrology? like bs, when genius level mathematicians and engineers with state of the art technology using state of the art mathematics, signal processing, etc have trouble finding any edge in any market niche.
Some advocates of ... By: bionicturtledotcom. on 11 Jan 12, 17:58:51 Some advocates of TA support by observing markets aren't efficient (EMH? is not empirically justified). And? I agree with that premise. But they often leap from? (i) EMH is not? valid to (ii) TA is valid. But this is an inverse fallacy:
This is TRUE: If EMH --> TA is not useful
(i.e., arguably the definition of weak form EMH)
but this does NOT follow: if not EMH --> TA is useful
(this follow: if TA is useful --> EMH is not true)
great question ... By: bionicturtledotcom. on 11 Jan 12, 17:37:05 great question because i have it myself. I personally have never used technical analysis to trade, although I am keen to keep an open mind i can't argue with the supply/demand tenet. Unlike? my fundamentally-based videos, I do not have practical experience with TA and, frankly, in researching the topic, i find some equivocation to justify anything ex post (e.g., variations on head & shoulders + volume leave it wide open) ... these videos are b/c TA is in the CFA L1, fwiw
How much support do ... By: genesis213. on 11 Jan 12, 17:25:57 How much support do these types of patterns have in practice? Are there actually people who trade successfully based on these patterns? My experience in researching these has been that they are highly unpredictable therefore not providing? significant advantage, though I had not considered volume in looking for the patterns.
I agree, I don't ... By: bionicturtledotcom. on 11 Jan 12, 23:14:58 I agree, I don't see how tenet (3) follows from the first two; although i regard the first 2 tenets as rather self-evident. In that sense, I disagree w.r.t supply/demand: i think, ultimately, the only? direct impact on bid-ask prices is supply/demand. Future expectations, variously held, indirectly inform decision to buy (demand) or sell (supply).
As a fundamental analyst, the thing that most challenges me is the truth of 1 and 2 and related: that sentiment shifts prices in the short run
but even if prices ... By: mvogt. on 11 Jan 12, 22:34:14 but even if prices moved in trends, e.g it was 10x as likely for the price to go up in a given time interval, then the magnitude of an average loss would be 10x as high compared to a win.
So from an outperformance standpoint trends would not be of any importance assuming they existed, and since the lowering of systematic risk is equivalent to gaining outperformance, because
of their practical interchangeability - there would not be any? importance of trends at all.
So the fundamental ... By: mvogt. on 11 Jan 12, 22:34:07 So the fundamental tenet for TA you depict is "Prices can be? projected because" 1. "prices tend to move in trends" and 2. "patterns tend to repeat"
and that is somehow implied from "Supply and demand determine prices" and from the derivatives (mathematical sense) of those.
Firstly I do not think that the premise is true, because AT BEST prices are determined indirectly by future expectations of supply and demand and not directly and solely by
supply and demand,
Thanks a? lot By: Touramful. on 08 Jan 12, 23:20:16 Thanks a? lot
Thanks? so much By: candybar123486. on 08 Jan 12, 08:02:33 Thanks? so much
Two bonds with same face of $1,000 have the same modified duration of 3.0 years. Bond A is a zero-coupon bond with current price of $900; Bond B is a coupon-bearing bond priced at par. If the yield curve shocks up (in parallel) by 1 bps, the dollar change is greater for which bond?
The spreadsheet I used is located here @ http://db.tt/sZUabw2 g
In the second part ... By: bionicturtledotcom. on 04 Jan 12, 22:16:49 In the second part of this video, I show why the maturities of the bonds must be as follows: maturity of coupon-bond > maturity of zero > 3.0 years. And, also, you can see that convexity is not included in our answer, and would muddy the result as the bond's do not have equal convexity, but when the shock is only 1 bps, the convexity? adjustment is tiny.
Question: A bank pays a stated annual interest rate of 8 percent. What is the effective annual rate using the following types of compounding? A. Quarterly; B. Monthly; C. Continuous
You are asked to estimate the VaR of an investment in Big Pharma Inc. The company's stock is trading at USD 23 and the stock has a daily volatility of 1.5%. Using the delta-normal method, what is the 1-day (holding period) 95% confident VaR of a long position in an at-the-money put on this stock , if the put has a delta of -0.50? Bonus: what is the put option's 10-day VaR?
@audguy21 I think I ... By: bionicturtledotcom. on 04 Jan 12, 22:51:42 @audguy21 I think I said (see @7:25) that 5% of the time, the put value will drop at least 28.4. There are two ways to express? VaR:
a 95% probability the loss will not exceed--i.e., will be less than or equal to--the quantile (e.g., 28.4), or EQUIVALENTLY
5% probability the loss will exceed the quantile.
I prefer the latter as it emphasizes VaR is aware of? the (extreme) tail but, unlike say ES, gives no real information on the tail.
Great video, but I ... By: audguy21. on 04 Jan 12, 22:39:32 Great video, but I have a doubt. When we say that 95% of time the loss would be at most 28.4 cents, it would mean that the other 5%? of time, the loss may or may not be more than 28.4 cents. This is in contrast to what you said in the video that the loss would be at least 28.4 cents.
normsinv( 0.95? ) By: TheRonDoe. on 02 Jan 12, 18:42:39 normsinv( 0.95? )
What is the formula ... By: Vofcr. on 01 Jan 12, 07:53:21 What is the formula you have input into cell F12 to return the normal? deviate at X% confidence?
@bionicturtledotcom ... By: TheRonDoe. on 30 Dec 11, 22:26:57 @bionicturtledotcom Having just read @QuaQuoHD 's comment, I can't believe he's saying such a thing. Not being blessed with 'higher education' for even one day, I can say that by hook or crook I have had to learn this stuff 'alone', and free resources such as yours have been a fountain of quality info. Trading stock and options for real on a daily basis, I can? say that I use info like this as the backbone of my risk management. It is very much a practical exercise. Thx David
ahahah great answer ... By: borghese84. on 30 Dec 11, 03:05:49 ahahah great answer David..and amazing video. What u do has really few equals in the web. Thanks..seriously?
Very good ... By: gutrp. on 29 Dec 11, 22:20:31 Very good explanation!?
I guess you know ... By: bionicturtledotcom. on 29 Dec 11, 21:24:47 I guess you know better than GARP. But even if you think option? VaR is not practical, the exercise gives illustration to volatility, delta-normal VaR, and option delta. At a minimum, it shows? a modest application of option delta.
But thanks for not just making a negative (negating) comment and instead offering a positive (affirmative) example of what you have in mind ... oops, nevermind, that's somebody else I am thinking of
It's difficult to? ... By: QuaQuoHD. on 29 Dec 11, 21:02:31 It's difficult to? imagine an exercise that is further from practice of options risks than the one in the video.
Client invests $100,000 in bank account with stated annual interest rate of 7.0%. How much does client have in account after three (3) years, if we assume quarterly compounding? (bonus: continuous compounding)
Oops, I am sorry (I ... By: bionicturtledotcom. on 05 Jan 12, 02:45:45 Oops, I am sorry (I should not take it for granted). If it helps, on any calculator you want to locate the e^x keystroke, which is equal to exp() in Excel. In? this example, then, you only need:
.21
g e^x [result = 1.2337]
* 100000 enter [result = 123,367.8060]
You didn't show ... By: peridotic. on 05 Jan 12, 02:06:58 You didn't show how? to calculate continuous compounding on the calculator
Oh I understand ... By: heckler73. on 30 Dec 11, 23:08:31 Oh I understand your intent. But it is good to show the underlying math, since some people retain information better that way. However, it's a moot point since you've now discussed it in the comments.
Granted, if people are forced to use THAT calculator, they may not be able to easily compute the answer using regular math.
Your FRM vids are fantastic, BTW.? Keep up the great work; it is appreciated by many.
Hello David. I was ... By: borghese84. on 30 Dec 11, 03:20:56 Hello David. I was just wondering, isnt it more intuitive to use the "classical" formula to compute the quarterly compounding as well as the continuos compounding (like u actually did for the continuos comp.)? I meant like the one used in Hull in? chapter 4(2007)
@heckler73 Good ... By: bionicturtledotcom. on 29 Dec 11, 02:30:10 @heckler73 Good point, FV=PV*(1+r/k)^(n*k) is more natural. Maybe i should have showed that too. My real? intent was to show the solution with TVM functions on the calculator @3:40
thanks!
I prefer just using ... By: heckler73. on 29 Dec 11, 02:17:54 I prefer just using the formula FV=PV*(1+r/k)^(n*k).
I never knew about the FV function in? excel, though. That's "interest"ing.
Four cases of cash flow timing: -early cash- gives rise to unearned revenue and prepaid expense; -cash later- gives rise accrued revenue or accrued expense
Im? not gettin it!! By: aggresive1queen. on 29 Apr 12, 16:04:30 Im? not gettin it!!
You're welcome. ? ... By: ktkl68. on 30 Dec 11, 07:20:22 You're welcome. ? thanks and happy new year!!
I pulled out " ... By: wadams19. on 30 Dec 11, 07:14:20 I pulled out "nonaccural" in? an interview? today. One of the few things I said with confidence. Thanks, man. You should make videos more often.
thanks for the nice ... By: bionicturtledotcom. on 27 Dec 11, 19:12:56 thanks for the nice comment. As we are currently developing our ideas for 2012 videos, i? will add your suggestion. Cheers!
Hello! I find your ... By: ktkl68. on 27 Dec 11, 19:08:26 Hello! I find your videos very helpful and interesting. I have? always had trouble with swaps and their methods of hedging and settlement. Please post videos on swaps thank you.
Thank? you for your ... By: bionicturtledotcom. on 09 Feb 12, 00:49:40 Thank? you for your kind support. Manish of financetrain(dot)com, who helped prepare this, and I appreciate it!
Thank you very much ... By: o266242. on 08 Feb 12, 20:31:00 Thank you very much. This so much better than reading about it. You make it very easy for everyone to? understand these concepts in an intuitive manner
Yesterday the Euro dropped against the dollar, down to EUR-USD ~$1.30. How do we intrepret the strenghtening-weakin g of a currency against another currency?
easy way to? look ... By: MrBigEnchilada. on 15 Dec 11, 02:52:48 easy way to? look at it
i think their is ... By: idmji89. on 14 Dec 11, 22:00:53 i think their is big correlation with the EURO crisis and then bond s surging in US, stocks? are selling off but I think not so much in correlation to bonds, and gold in result to so much deflation , he dollar to the upside along with S & p's maybe
Here is the spreadsheet I used @ http://db.tt/bziK312 h. The four central moments of a distribution are mean (1st), variance, skew and kurtosis. They tell us quickly about the personality of the distribution.
What about if we ... By: danikisa. on 03 Dec 11, 17:48:02 What about if we dont have? a probability of X can we calculate variance, skewness and so on?
Yes, thank you for ... By: bionicturtledotcom. on 06 Nov 11, 17:11:27 Yes, thank you for the correction! It makes sense that the first central moment is zero, not the mean. As I look it? up, apparently the mean is the the "first raw moment" ... thanks for the help, David
hi, the? first ... By: DharmikJ. on 06 Nov 11, 03:47:52 hi, the? first central moment is 0 since E(X-mu) = E(X) - mu = mu - mu = 0. The first moment (not central) is the mean (E(X) = sum value * prob of value), but subsequently central monents can be used to calculate variance, skewness and kurtosis. Just thought I would point that out. cheers.
Thank you, and ... By: bionicturtledotcom. on 30 Oct 11, 00:29:45 Thank you, and thanks for the video response on Type I, Type II, I am? checking it out now. +1 subscriber, thanks!
Really nice job. ... By: plumstreetmusic. on 30 Oct 11, 00:26:29 Really nice job. Applause!!!?
I am sorry it ... By: bionicturtledotcom. on 27 Oct 11, 20:38:24 I am sorry it doesn't solve a problem in your life, can you maybe send me your bio/CV and some background information (e.g., dreams, aspirations) and? I can get cracking on another free video that does give you real help? Thanks, I look forward to giving you the support you deserve! David
Sorry ive ... By: NicosMind. on 27 Oct 11, 19:05:43 Sorry ive subscribed cause i want to learn more about the markets and trading etc. But as someone whos a total virgin this video here has? completly confused me. I see distribution mentioned in the title but distribution of what? What does this video releate to and how will this help with myself and others?
I hope all that doesnt sound too stupid but i really am lost :S
The Loss Distribution Approach (LDA) convolutes (combines) a discrete FREQUENCY distribution (how many losses over the year) with a continuous SEVERITY distribution (how severe is each loss conditional on its occurrence?) into a total AGGREGATE loss over the year.
Hi David, thanks ... By: DharmikJ. on 08 Nov 11, 09:36:32 Hi David, thanks for the video. Will there any further videos on this topic being made? I am really interested in seeing how complicated this can get. ideally, state the problem scenario (typical at work), then demonstrate how you can go? about solving it using modelling and quant methods. This is quite useful for those with quant backgrounds/ degrees who want a bigger challenge. Much appreciated!
Good videos.? By: rollingcube. on 14 Oct 11, 14:37:25 Good videos.?
Very nice video!? By: callej123. on 14 Oct 11, 05:59:43 Very nice video!?
How would you run ... By: udonewsreport. on 14 Oct 11, 05:40:25 How would you run the Loss Distribution Approach against the forward contracts of? Crude Oil? Would you segregate the approach within each individual contract? Thanks for any reply..
Thanks,. Where do ... By: DavidAKZ. on 14 Oct 11, 03:09:41 Thanks,. Where do you think 9/11 and the GFC fit in terms of frequency and severity ??
Single-name credit default swap (CDS) version 2.0 is an update of a prior video. I wanted to better address cash versus physical settlement; and, due to the big bang protocol, please note the most CDS now trade with standardized coupons (100 bsp, 500 bps) with an UP-FRONT coupon payment adjusting for the market value.
thanks i? really ... By: bionicturtledotcom. on 12 Oct 11, 16:55:32 thanks i? really appreciate that! David
That was one of the ... By: tomdilello. on 12 Oct 11, 10:45:44 That was one of the best? explanations of what a CDS is I've ever seen. Thanks!
please David ,very ... By: suryabhai12. on 18 Apr 11, 08:12:39 please David ,very humble and? earnest request,"please do a video for Treynor black "model
I? will keep the ... By: bionicturtledotcom. on 07 Apr 11, 16:39:23 I? will keep the videos coming, thanks for your supportive feedback! - David
that's funny. I did ... By: bionicturtledotcom. on 07 Apr 11, 16:38:44 that's funny. I did actually think about that: as a man, i never want to? be seen as sexist, so I try to use "she" or female in the powerful rôle. For some reason, I was thinking the credit protection seller has the upper hand, which has no logical basis. Too much thinking, probably! Just funny to me that you raised the male/female b/c i always think about it
you got it all ... By: mashimaromania. on 07 Apr 11, 08:39:43 you got it all wrong, men suppose to protect women,? not the other way around....
You explained it ... By: jamestakeshi. on 04 Apr 11, 02:10:17 You explained it better than my CFA textbook. So, Kudos to? you! Please keep the videos coming.
Thanks james, I ... By: bionicturtledotcom. on 04 Apr 11, 01:51:44 Thanks james, I appreciate that. A bit of rust for me on this one, but wanted to better convey the new? up-front coupon and a lot of people asked about how settlement works with respect to recovery, so i hope that's better now!
Excellent!!! I have ... By: harlowization. on 21 Feb 11, 02:09:49 Excellent!!! I have been In the business for nearly 20 years and have a complete understanding of leasing. I am amazed at how few auto professionals understand or can even explain the basics of leasing. Some States calculate taxes based on the Cap Cost not on the use payment? (Illinois) for example. Other than that small omission your explanation is dead on.
I am amazed on how much mis information there is on this subject on the internet.
Just to summarize ... By: bionicturtledotcom. on 05 Feb 11, 20:15:28 Just to summarize that, in case it's helpful, the effective APR (effective annual rate) can be computed as a function? of MF as follows:
(1+(MF*24)/12)^12-1
e.g., in the example above:
(1+(0.0024*24)/12)^12 - 1 = 5.91%
thank you! great ... By: bionicturtledotcom. on 05 Feb 11, 19:34:16 thank you! great question b/c every? dealer we spoke to claimed ignorance:
e.g., (30,000 + 16,000) * MF = monthly interest
(cap cost + residual)/2 * interest rate*1/12 = (cap cost + residual) * interest rate * 1/24
ergo: MF = interest rate/24, where interest rate is applied to the AVERAGE of the cap cost and residual.
In the example, 5.76% is that stated annual rate (you could call it a nominal APR), but compounded monthly, so the effective APR = (1+ 5.76%/12)^12-1 = 5.91%
Great analysis. ... By: stgpepper. on 05 Feb 11, 03:41:51 Great analysis. Could you explain why the MF is 24? We would appreciate it.? Keep up the good work. Thanks
David, enjoy? your ... By: ad2181. on 04 Feb 11, 04:19:11 David, enjoy? your series.
![Duration\](http://i.ytimg.com/vi/-KKBWrnrNf4/2.jpg "Duration\")
Latest comments made on this video:
By: oaselim. on 13 Mar 12, 10:01:23
Thank you, this was very helpful. ?
By: rodctenis. on 25 Jan 12, 18:36:21
Your videos are very useful. Could you prepare some focused on services? Service sector is very important, but normally for the analysis? the models are based in those used in the goods sector and are not the same.
By: ktkl68. on 19 Jan 12, 19:24:27
Thanks for the help. They use bottom-up? analysis and yes, I will look at some cash flow valuations and adjustments. Thanks!
By: bionicturtledotcom. on 19 Jan 12, 01:54:51
Thank you, I am working with Manish of financetrain(dot)com on these, and we used pure PowerPoint (+ modest animations) here (camtasia in? PPT). Thanks!
By: bionicturtledotcom. on 19 Jan 12, 01:52:25
thanks! fluency is a whole enchilada, and I sincerely think the CFA curriculum does a good job establishing fluency. In your shoes, fwiw, I might 1. practice some use-case actual cash-flow valuations so you can speak to adjustments that analyss make; 2. I'd try to get hold of their (the firm's) research report to see? where they focus; and 3. if they cover INDUSTRIES, i would familiarize: different sectors focus on different FinStatement issues. I hope that helps, good luck!
By: ktkl68. on 19 Jan 12, 01:32:20
Great video as always. I have a quick question. For my junior equity research interview, the manager asked me to be FLUENT with financial statements. Could? you please tell me which areas I should focus on before I go in for the interview?
By: marchesedesade89. on 18 Jan 12, 10:26:34
bionicturtledotcom is always the best ever. Really, I? could have not read the book...this is enough :)
By: marchesedesade89. on 18 Jan 12, 10:26:28
bionicturtledotcom is always the best ever. Really, I could have? not read the book...this is enough :)
By: rkenshinn. on 18 Jan 12, 02:59:23
Very nice explanation, neat content. What? do you use to make your slides ?