Warren Buffet Speaks Out on Derivatives

A reprint of pages 13 to 15 of the 2002 Berkshire Hathaway annual report in which Warren Buffet discusses his thoughts on derivatives.

The Weighted Average Cost of Capital

A detailed look at how to calculate WACC.

Estimating Risk Measures (How to use VAR, ETL in Excel)

Writing in Financial Engineering News, Kevin Dowd explains how to use Excel to calculate VAR and other risk measures. This will be VERY HELPFUL in class!!!

For instance: “To estimate the daily VaR at, say, the 99 percent confidence level, we can use Excel’s Large command, which gives the kth largest value in an array. Thus, if our data are an array called ‘losses,’ we can … [ Read more ]