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Profitability Ratios, CFA L1 (Financial Statements) Posted by: bionicturtledotcom
Video duration: 631 seconds Return on Sales (income statement) and Return on Invesmtent (returns to balance sheet). |
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Solvency Ratios, CFA L1 (Financial Statements) Posted by: bionicturtledotcom
Video duration: 484 seconds Solvency ratis are either debt ratios (balance sheet-balance sheet) or coverage ratios (income statement-interest) |
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Liquidity Ratios, CFA L1 (Financial Statements) Posted by: bionicturtledotcom
Video duration: 452 seconds 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. |
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Dave learns R: first plot Posted by: bionicturtledotcom
Video duration: 254 seconds 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! |
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Activity Ratios, CFA L1 (Financial statements) Posted by: bionicturtledotcom
Video duration: 505 seconds Cash conversion cycle = DOH + DSO - DPO |
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Optimal hedge of equity portfolio with S&P futures contract, FRM Q&A (hedge) Posted by: bionicturtledotcom
Video duration: 563 seconds 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!) |
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Continuation chart patterns (technical analysis), CFA L1 Posted by: bionicturtledotcom
Video duration: 329 seconds Triangles and rectangles are patterns that interrupt the continuation of a long-term up-down trend |
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Reversal chart patterns (technical analysis), CFA L1 Posted by: bionicturtledotcom
Video duration: 318 seconds Patterns that reverse trends include (inverse) head and shoulders; double tops/bottoms |
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Technical Analysis, Intro: CFA L1 Posted by: bionicturtledotcom
Video duration: 499 seconds Tenets of technical analysis; common charts |
![Duration\](http://img.youtube.com/vi/-KKBWrnrNf4&feature=youtube_gdata/2.jpg "Duration\") |
Duration's impact on different bonds: FRM Q&A (bond duration) Posted by: bionicturtledotcom
Video duration: 592 seconds 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 |
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Effective Annual Rate: CFA Q&A (TVM) Posted by: bionicturtledotcom
Video duration: 275 seconds 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 |
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VaR of Put Option: FRM Q&A (Valuation: VaR) Posted by: bionicturtledotcom
Video duration: 518 seconds 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? |
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Future value: CFA Q&A (Quantitative Methods: Time Value of Money) Posted by: bionicturtledotcom
Video duration: 300 seconds 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) |
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Accrual Accounting Posted by: bionicturtledotcom
Video duration: 443 seconds 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 |
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Accounting Equations Posted by: bionicturtledotcom
Video duration: 390 seconds Fundamental formulas for: income statement, balance sheet, and statement of retained earnings |
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How to read a spot foreign exchange (FX) rate Posted by: bionicturtledotcom
Video duration: 457 seconds 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? |
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Quantile function (Inverse CDF) Posted by: bionicturtledotcom
Video duration: 560 seconds Here is the spreadsheet I used (and that shows the same recursive solution to all three distributions): http://db.tt/gyrCxFU 5 The quantile function, which is the inverted cumulative distribution function, gives us the value (X) that answers the question, with confidence of (P%), what is the most losses I can expect? |
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Distribution moments (mean, variance, skew, kurtosis) Posted by: bionicturtledotcom
Video duration: 627 seconds 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. |
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Loss distribution approach (LDA) Posted by: bionicturtledotcom
Video duration: 403 seconds 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. |
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Credit default swap (version 2.0) Posted by: bionicturtledotcom
Video duration: 389 seconds 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. |
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APR (EAR) versus stated versus continuous interest rates Posted by: bionicturtledotcom
Video duration: 393 seconds Three rates we tend to care about: 1. Stated annual rate (aka, nominal, quoted); 2. Effective annual rate (EAR, EAY, effective APR); 3. Continuously compounded rate. |
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Auto lease payment math Posted by: bionicturtledotcom
Video duration: 556 seconds A monthly lease payment has two parts, depreciation and interest. |
