Blog Archives

Mr. Vanzini delivered on the air

If economics commentators did not abound around home, one would certainly need them. But in case you are one of the luckiest living in a remote area and miss your favorite finance & economics wizard, here’s a link - sadly only in Italian, though – delivering right to your newest flat

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Posted in Economics
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Are top “growers” top “performers”?

Life is hard when it comes to forecast future returns. How much expected earnings growth accounts for relative performance? Based on data by Factset about Stoxx 600 securities as of November 30, 2013, picking the top 115 12-month performers vs. the index and  comparing them with the top 115 securities in

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Posted in Economics
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Look yourself in the mirror!

To whoever conveyed recently his or her doubts – during a seminar – about how ‘in practice things look differently in comparison with how simple you’ve put them in theory’ expressing hesitation about the conclusions on the dividend yield-price earnings ratio relationship, I’d like to draw his or her attention

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Posted in Economics
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ECB’s Financial Stability Review: last call

The ECB’s recent last call to public finance austerity and reform rigor has been relayed by its last Financial Stability Review update on November 27. Though admittedly austerity has been and still is a short-term recessive drag on the mostly stressed peripheral euro economies, it remains an important factor to be

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Posted in Economics
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Yield to maturity on Excel

Excel offers simplicity via convenience: yield to maturity and internal rate of return are at hand on such ubiquitous tool. During the preparation of our mostly sought-after e-learning training sessions for the EFPA certificate, at eXponential we have realized how bewildered financial advisors are sometimes at dealing with Excel for

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Posted in Economics
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Black-Litterman: a soft introduction

The Black-Litterman (BL) model considers explicitly that investors do express their own views about risky asset returns by collectively holding the market portfolio according to their market capitalizations. An active investment manager aiming at beating the market often implements her own views tilting the portfolio weights towards over or under performing assets according to rules

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Posted in Economics, Whitepapers
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“Babcock duration”: a weighted average of two factors

Lately, I have had to explain what Babcock duration is. Further to saying it’s an alternative gauge of duration to Macaulay it simply is a weighted average of two factors [1]: (maturity) and The outright formula [2], the weighted average, is: . There’s a zero coupon with n years of

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Posted in Economics
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Hilarious joke about behavioral finance

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Posted in Economics
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