Finance 2: Investors and Markets. Practical stuff On Wed. May 27, there will be regular tutorials. You can test yourself w/ some pop-quizzes from the course homepage. On Wed. June 10, there are lectures from 13.15 in [???] The plan for today Mon. May 18, 2009: Remarks on Sharpe’s Ch. 5.
The plan for today Mon. May 18, 2009:
Recall: Mario and Hue work for MFC, HCF.
Recall: Salaries vs. collateral. Junior can’t borrow.
Disagreement over probabilities: A main driver investment or: speculation, betting.
Active managers remark.
Index fund premises.
prices reflect information
he means something like:
#14: Setting the stage w/ Hue and Mario
#15: Many independent predictions; vox populi.
#16: Many are dead wrong, a few are right. Detectable gains. W5 Exercise.
#17: Wrong & noise (”bias”) vs. right: Harder to see gains.
#18: Different prediction accuracies: Quite hard to spot.
Can we find a way to tilt probabilities in APSIM to achieve this?
Less risk-averse investors many be willing to pay more to learn true parameters. (Bas, Roon, de Werker; Hand-In #2?)