I just want to see how many of you understand this concept. It shouldn't be too hard for you guys. All you big, burly math and science majors.

Wuzzat?

http://www.csb.uncw.edu/people/siglerk/classes/IMBA%20535/Homework/

Could you have done that?

EDIT: lol, thought those were the answers. Actually we covered portfolio risk earlier in the semester, and in the FNCE 3000 course.

No, it's using creative thinking to solve a problem. Not just memorizing formulas and then plugging in numbers, which is a complete waste of time and why I'm not in a business discipline.

FNCE 3000, this finance class, and business stat covered these things. What is Value Line? Is that a stat program?

P.S. - $240,000

You either did it wrong, or else you rounded.

Hard to understand a concept when you have no background in it.

Try this on for size:
How large must the minimum cross sectional area of a beam be to support a 75,000lb load if its yield strength is 106ksi and we wish to avoid plastic deformation?

Its a really simple calculation, but if you have no idea what a yield strength or a ksi is, you'll have no idea how to do the problem. Likewise, if you have no idea how a hedge fund works, theres no way us "big burly math and science majors" can answer the question.

I am in shock too. This is a Kame topic, and the image says "NZ$" instead of "kiwi".
Sure, they mean the bird, but it is still the principle of the matter.

I know. I just wanted to show you guys what I'm studying in school. hehe.

So, I tried to give a hint and in so doing I kinda explained things wrong. Here's the right answer, a bit rounded.



Ready for another?

No, not really.

Woops, I copied the answer to the wrong problem.

http://www.google.com/url?sa=t&source=web&cd=7&ved=0CEgQFjAG&url=http%3A%2F%2Fwww.bus.ucf.edu%2Fajayi%2Fdownloads%2FFIN%25204604%2520Sample%2520Questions%2520II%2520.doc&rct=j&q=%22executes%20a%20money%20market%20hedge%22&ei=bh78TOqJGous8AaMoOX_Cg&usg=AFQjCNHimTvzNE9vq9GGm_sG8TcxmKrmkA&sig2=Mvshaf5dadQBGUCl6GcGdg&cad=rja

Whoever is using an NZ$ rate of 0.40 is off their rocker. I think the lowest the currency have ever been was something like 0.44, and at the moment it's around 0.74 and has been that way for about a year now.

And 8% interest +10% interest on loans is awesome, but it's more like 5-6% and 15% ATM.

I believe it is pretty close to 0% in Japan right now

And the borrowing rate is 12%/10%. 8% is for interest you would get if you invested in a bank.