Battle of the Nobel Prize Winners:  Fama vs. Sharpe!

Battle of the Nobel Prize Winners: Fama vs. Sharpe!

OK, I’m just kidding… there is no grand battle here between economists (and Nobel prize winners) Eugene Fama and William Sharpe.  That being said, CIPM candidates at the Principles level *are* expected to deal with the following Learning Outcome...
Fast Calculation of Internal Rate of Return (in Multiple Choice Situations…), Part II

Fast Calculation of Internal Rate of Return (in Multiple Choice Situations…), Part II

In my last post, I covered a “fast” way to solve multiple choice internal rate of return exercises.  In today’s post, I look at a second quick method.Recall the details from the last post:Account market value on 3/31 is $56.3 millionAccount...
Fast Calculation of Internal Rate of Return (in Multiple Choice Situations…), Part I

Fast Calculation of Internal Rate of Return (in Multiple Choice Situations…), Part I

I have covered the steps to calculating internal rate of return in a few different posts on the blog, including here, here and here.  I have also covered the steps to use the cash flow worksheets of the TI BA II Plus and the HP 12 C.  You may have read the...
Performance with Leverage:  Part II

Performance with Leverage: Part II

Yesterday, I covered return calculation for a portfolio with leverage.  To review, the background information is:The investor wants to acquire a 500 million euro property but only has 400 million in cashThe investor borrows 100 million euro in order to acquire...

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