Financial Institutions BU.231.710.W4.SP16
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This 3 page Class Notes was uploaded by Kwan on Wednesday March 23, 2016. The Class Notes belongs to BU.231.710.W4.SP16 at Johns Hopkins University taught by Roger Staiger in Spring 2016. Since its upload, it has received 30 views. For similar materials see Financial Institutions in Finance at Johns Hopkins University.
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Date Created: 03/23/16
Financial'Institutions Tuesday,%March%22,%2016 13:39 Roger&Staiger 1. Syllabus Top%Three%Goals%of%Inv: 1) Stay%out%of%jail 2) Get%your%money%back:%probability%of%loss Left%of%0%%of%return Eg.%Liquidity%costs%money 3) Return%on%capital:%IRR EEFormula:%d=NPV Probability%distribution:%Normal% EEMeanas%IRR%(based%on) Continuous%vs%discrete Possibility:%0!%Not%100%! &%Risk:%depict Eg.%Coffee%$5?EE>$55%for%us:%purchasing%power Risk% Equation:%!!! Master%of%Science:%equations%and%maths Sharpe%ratio:%no%coefficient%variance? Global%Financial%Market: eg.%Environmentalists'%best%wa E%own%the%trees,%or%give%the%politicians%money%to%protect%them Financial%Institutions%&%Wealth%Management:%important How%to%make%money%will%be%taught A%connection%will%get%you%the%job:%eg.%Ch12%is%boring%because%…%in%interviews Banks:%earning%froms%pread How%to%make%money%will%be%taught A%connection%will%get%you%the%job:%eg.%Ch12%is%boring%because%…%in%interviews Banks:%earning%froms%pread Risk%and% Personal%portfolio%cf.%corporate%portfolio%(optimization) 4%characteristics%of%money:%How%much?%Where%u%get?%When%u%get%it?%Color? 3%Derivatives:%forwards,%futures,%options%(swapsEEvarious%ways Eg.%Straddle //slides▯▯▯ //due:%1.30pm! HW%&%3%quizes%&%Final Paper:%10%pages%(2%pages*5:%…;%how%to%make%money) 2. Subprime Biggest%money%munipulator:%US Marriage:%US%&%China%(good%or%bad?%But%not%divorce) Jobs:%stolen%by%tax Why%US%Inflation%so%low:%no%wage%growth%since%2006.%eg.%Home%price%grows%greatly Monetary%Hawk%vs%Dove Federal%Reserve%Yield%Curve Flat%yield%curve:%2006%&%2007%(problematic) EE>%How%to%make%money:%short%the%market%(bet%against%financial%markets) Upward%sloping:%2009%(normal) EE>%long Eg.%No%magic%data%in%Greenspan's%book%too%(Greenspan:%a%musician) Bernanke:%academic&%crises%(EE>2006) Sandi:%Citigroup,%starts%the%crisis 3%theories%of%i:%expectation,%liquidity,%segmentation Flat:%short%vs%long%EE>%recession Consistency:%what%takes%to%money Trade%on%what%u%believe Risk%&%return:%correlation Fischer:%real%estate%(Book) Consistency:%what%takes%to%money Trade%on%what%u%believe Risk%&%return:%correlation Fischer:%real%estate%(Book) Education%could%not%be%stolen. The%price%of%commodities:%oil%and%gold%price%now "Passive%income"
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