My heart (and cashflows) will go on!
Heffalumpsum is an annuity!
Bonds that bind!
No Pain No Gain
Potpourri
200
The PV of a growing perpetuity.
What is Cashflow1/(r-g)
200
If the APR is 8% and compounding is monthly, this is approximately the EAR
What is 8.3% p.a?
200
A graph showing the bond returns with different maturities.
What is a yield curve?
200
The E(Rm)-Rf (Market Risk Premium) range.
What is 5-7%?
200
Who is Bernie Sanders?
400
$100 forever in a 10% world
What is $1,000
400
If you want your money to double in 10 years, you must earn this rate.
What is 7.18% p.a.?
400
For a given rate, if the frequency of compounding increases, this happens to the rate.
What is increases?
400
I should maximize when deciding between stock investment options.
What is The Sharpe Ratio?
400
The collection of the 30 largest businesses in America
What is the DOW 30?
600
I want to borrow and Bank A offers me 10% p.a. quarterly compounded. Bank B offers me 9.9% with monthly compounding. The better choice!
What is Bank B?
600
You find $1,000 under your mattress and deposit it in a bank account that earns 3% interest annually. Time to earn $1,159.27
What is 5 years?
600
Impact of an increase in yields on bond prices.
What is a price decrease?
600
No one invests in 1 company...When we go with portfolios, the risk comes from this.
What is Beta or Covariance? (both answers accepted)
600
An investment firm with minimal regulations and able to take on high risks!
What is a hedge fund?
800
My bank offers me increasing return with $20 mln in 1 year and asks for a deposit of $266.666666 mln when returns are 10% p.a. What is the growth?
What is 2.5% p.a.?
800
I want to have a million dollars in 7 years with a series of this amount of annual deposits at 10%
What is $105,405?
800
The $ change in the price of a bond with a face value of $1,000 paying a 6% p.a. annual coupon and maturing in 10 years when the bond’s annually compounded yield changes from 6% p.a. to 5% p.a.
What is +$77.22?
800
How many covariances do you have in a 16 asset portfolio.
What is 240?
800
Who is George Soros?
1000
I was offered a perpetuity paying $200 every six months. I had to pay $4,000 for it. My discount rate p.a.
What is 10% p.a. semiannually compounded?
1000
The better offer between Option A, receiving $1,200 at the end of each year for 5 years or Option B, $5,000 today. If the discount rate is 8% p.a.
What is Option B?
1000
The price of a zero-coupon bond with a face value of $1,000 matures in 10 years and a yield to maturity (YTM) of 4% p.a. (annually compounded)
What is $675.56
1000
How much $ should I invest in Company A (Beta=-0.5) my million dollar portfolio if Company B is the market.
What is $ 666,666.67? (% is not accepted)
1000
An investment firm in search of fixer upper businesses!
What is a Private Equity (PE) fund?