Finance Fanatic

Session 15 Summary

Here's a summary vide for Session 15. It's about 18 minutes long. In it, I review some of the concepts (triangle arbitrage, strengthening vs. weakening, forward rate parity) through an illustration of the "carry trade". Specifically, I show what would have happened to you if one year ago you tried to borrow money in Japan at low interest rates and invest that money in Turkey at high interest rates. I also show that you could not eliminate the risk of the deal by locking-in a future exchange ra...

Example of Using Solver to Calculate an IRR (Ch....

In this video, I show how to use the Excel "Solver" add-in to calculate the IRR in problem #6 of Chapter 8.

Finding "Solver"

This very short video shows you how to find the "Solver" add-in tool in Excel 2007, along with how you go about "adding it in" in case it is not already in your toolbar.

Session 10 Summary (Long)

Here's a 25 minute summary of Session 10. In the video, I review the CML and then do an example problem of relating market return to standard deviation. Next, I review the SML (and its connection to the CML) and work a problem where we relate expected return to beta.

Session 9 Summary

Session 8 Summary

Session 6 Summary

Session 5 Summary

Session 4 Summary

In Session 4, we looked at the time value of annuities. Here is the summary video. Thank you for your patience.

Effective Annual Rates

I didn't get to this in Session 4; nevertheless, you are responsible for understanding the difference between the Effective Annual Rate (EAR) and the Stated Annual Interest Rate (SAIR) as well as how to calculate one given the other. The video explains things.Note that the SAIR is very frequently referred to as the "Stated" interest rate or the "Annual Percentage Rate" (or APR).