In The World Of Finance

tag:blogger.com,1999:blog-10480715461964513722011-11-28T01:28:15.326+02:00In The World Of FinanceBlog for personal finance and investment managementBolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.comBlogger211100tag:blogger.com,1999:blog-1048071546196451372.post-19801051828773282042009-01-29T00:45:00.000+02:002009-01-29T00:46:31.090+02:00Leverage

LEVERAGENobel Lecture, December 7, 1990byMERTON H. MILLERGraduate School of Business, University of Chicago, Chicago, Illinois, USA

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com39tag:blogger.com,1999:blog-1048071546196451372.post-21749545378351163152009-01-29T00:39:00.002+02:002009-01-29T00:43:28.145+02:00Foundations of Portfolio Theory

FOUNDATIONS OF PORTFOLIO THEORYNobel Lecture, December 7, 1990byHARRY M. MARKOWITZBaruch College, The City University of New York, New York, USA

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-26345556481221273862009-01-29T00:22:00.004+02:002009-01-29T00:35:22.540+02:00The Crisis of 2008: Lessons learned, unlearned and reinforced

In an article, posted on his blog, Aswath Damodaran, a famous name in modern corporate finance and valuation and author of many books, comments on how his perception of various market views has evolved after Lehman Brothers filed for bankruptcy protection. To me #1 is his observation: There is no risk-free asset. Pick up yours.The Crisis of 2008: Lessons learned, unlearned and reinforced

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-91810153073301726322009-01-28T23:57:00.002+02:002009-01-29T00:44:07.816+02:00The Capital Asset Pricing Model

CAPITAL ASSET PRICES WITH AND WITHOUT NEGATIVE HOLDINGSNobel Lecture, December 7, 1990byWILLIAM F. SHARPEStanford University Graduate School of Business, Stanford, California,USA

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-13342039792271659372009-01-28T23:34:00.001+02:002009-01-28T23:36:27.129+02:00Nobel Economists Offer First Aid for Global Economy

Five winners of the Nobel Prize for economics share their views on what thefuture global finance order should look like in exclusive essays forSPIEGEL.

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-10065898510640982252009-01-28T23:00:00.005+02:002009-01-28T23:13:51.266+02:00Contributors To The Crisis

The British Guardian and their City editor Julia Finch have made a list of twenty-five individuals who, according to them, have led us into the current crisis. Twenty-five people at the heart of the meltdown...

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-5428132235035918602009-01-21T23:41:00.011+02:002009-01-22T00:18:49.431+02:00Global Financial Crisis Video Webcast with Gillian Tett

In this video webcast (01:05:09), dated 4th of Dec, 2008, Gillian Tett, an assistant editor of the Financial Times responsible for their global coverage of financial markets, explains the market’s collective reaction to the global financial crisis using the Kubler-Ross model of the stages of grief. Ms. Tett draws on her experience witnessing the Japanese banking system collapse in the 1990s and

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-23764047040067043952009-01-17T01:09:00.003+02:002009-01-17T01:27:30.604+02:00IMF:Fiscal Policy During Financial Crisis

The International Monetary Fund published December 29th, 2008 a staff position note named Fiscal Policy for the Crisis. The document, among other things, reviews five case studies of fiscal policy during financial crisis featuring the Great Depression, the Banking Crisis in Japan in 1997, the Economic Crisis in Korea in 1997, the Savings and Loan (S&L) Crisis in the US (1980s–1990s) and the

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-6467494205934430152009-01-08T23:46:00.006+02:002009-01-16T23:10:47.952+02:00Financial Crisis Timeline II

BBC, like REUTERS, have their own extensive crisis timeline which provides text coverage since April 2007. The timeline starts with a quick guide to the origins of the global financial crisis.April, 2007, New Century Financial, which specialises in sub-prime mortgages, filed for Chapter 11 bankruptcy protection and announced cuts of half of its workforce.The timeline is named Global credit

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com1tag:blogger.com,1999:blog-1048071546196451372.post-26764484795265812012008-12-17T01:00:00.009+02:002009-01-09T00:05:03.978+02:00Financial Crisis Timeline I

REUTERS have made an extensive crisis timeline which covers in details the current financial crisis around the globe. The timeline provides video and text coverage since September 14th, 2008 and is updated daily.September 14th, 2008 investment bank Lehman Brothers filed for bankruptcy protection.The timeline is named Global Financial Crisis and is in the middle of the page, just below the

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-87270572343284690402008-11-15T01:48:00.009+02:002008-11-15T02:30:09.751+02:00Risk Assessment Quiz

Recently I have come upon a worksheet that some might find a handy tool for their risk assessment process. This worksheet tries to asses your overall risk-taking capacity and to give a numerical score on your risk tolerance along with suggesting sample asset allocations. Not very sophisticated but at the same time neat and insightful.Risk Assessment Quiz (doc file, 43KB)This quiz is designed as a

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-8720963683007693742008-11-13T22:59:00.004+02:002008-11-15T02:28:47.896+02:00One of The Best Explanations of The Financial Crisis

THE LAST LAUGH

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-1832747664047171662008-11-07T22:42:00.002+02:002008-11-07T22:45:32.799+02:00How to Invest Now

In light of the recent market turmoil, experts from Zacks Investment Research give guidance on how to construct your portfolio whether you are aggressive, conservative or somewhere in between.

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-7468885610114964192008-11-04T01:04:00.007+02:002008-11-04T01:49:12.092+02:00Business Plan for a Startup Business

Looking for a neat way to write your business plan? Well, look no more. The Service Corps of Retired Executives (SCORE®) have provided on their web site an extensive guide how to construct your business plan under the name Business Plan for a Startup Business. A good proof that the guide is popular and with potentially high value is the fact that the document has been downloaded more than 1

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-50645746827716895042008-10-31T01:36:00.009+02:002008-10-31T01:51:15.656+02:00Asset Allocation

Asset allocation is an effective method of diversification. It refers to the strategy of dividing your total investment portfolio among various asset classes. Here are five basic models, portrayed in an article of Shauna Carther (Biography) for http://www.investopedia.com/.

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-41664108836502957712008-10-26T23:53:00.005+02:002008-10-27T00:50:34.523+02:00The Future of Life-Cycle Saving and Investing

The Future of Life-Cycle Saving and InvestingLife-cycle finance is the branch of finance that affects everybody. The Research Foundation of CFA Institute teamed with Boston University and the Federal Reserve Bank of Boston to present a conference exploring the frontiers of life-cycle finance. Insights from such leading thinkers as Paul Samuelson, Robert Merton, and Zvi Bodie are captured in these

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-79505059035768626312008-10-25T01:34:00.004+03:002008-11-07T21:55:09.849+02:00Investment Strategies Against Inflation

Inflation and especialy elevated inflation could seriously undermine investment returns. Therefore efficient tactics against it need to be developed in order to prevent or at least dampen the defects of inflation. Here I will name several broad strategies that could be of help: Avoid broad portfolio diversificationStay long energy, materials and industrials against shorts in all other sectorsStay

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-40836329001563290152008-10-24T01:36:00.010+03:002008-10-24T01:54:03.086+03:00Benjamin Graham's Investment Screening

Ever wondered how Benjamin Graham used to screen for investment picks?Here is his list:PE of the stock has to be less than the inverse of the yield on AAA corporate bonds.PE of the stock has to be less than 40% of the average PE over the last 5 years.Dividend yield has to be more than two-thirds of the AAA corporate bond yield.Price has to be less than two-thirds of book value.Price has to be

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-63945242207061083702008-10-22T00:49:00.007+03:002008-10-24T00:34:05.796+03:00Managing Your Own Portfolio

Need a piece of advice on personal portfolio management? Here is an insightful memo from Arthur Zeikel to his daughter on Managing Your Own Portfolio.Arthur is a 20-Year Veteran of Merrill Lynch Asset Management, now retired. He is father of three and grandfather of four and one of the most respected US leaders in asset management. Arthur is also member of the Editorial Board of the Financial

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-2391503460624104932008-10-21T00:06:00.004+03:002008-11-14T00:10:42.360+02:00Creating Your Investment Policy Statement II

Part II – PracticeAlthough each Investment Policy Statement (IPS) is very personal, it bears certain features which are nicely summed up in the Morningstar’s Investment Policy Worksheet (pdf). This document is only two pages long but full of vital questions that each investor should address.The worksheet’s leading section is called Executive Summary and serves as an overview of your current

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0tag:blogger.com,1999:blog-1048071546196451372.post-4363324876174023742008-10-19T23:57:00.002+03:002008-11-14T00:10:58.817+02:00Creating Your Investment Policy Statement I

Part I – Theoretical approachThe Investment Policy Statement (IPS) is your investment strategy in writing and helps you commit to a disciplined investment plan. It is an instrument to face your future financial goals today.A well-constructed IPS is thought to address at least the following areas:>your financial goals and desired/required return>your willingness and ability to take risk>your

Bolohttp://www.blogger.com/profile/05287836418735121505noreply@blogger.com0