Page Path: https://1452.robmunger.com/l1/calexamples/
Feedback Form Message: The way the second question is written out is confusing. 
I think you want us to do  .09/.04543 = 1.9811
1.9811*100 = 198.11%
198.11% investment in risky asset will give a 12% expected return of the complete portfolio.
Response: https://1452.robmunger.com/l2/section2/

Page URL: https://1452.robmunger.com/l1/whereformulas/
Feedback Form Message: Hey Rob, Can σ C= σ P ? is it when 50% invested and 50% of the portfolio in cash? Q2 in HW my answers σ C= σ P after the calculation.
Response: Covered in section

Page URL: https://1452.robmunger.com/l1/1outline/
Feedback Form Message: Hi there,
I'm kind of confused by the term 'Lending range slope,' like lending money to a borrower. Isn't it just the portfolio with 1 risk-free and risky asset?
Timestamp: 2024-06-29T18:01:46.026Z
Response: https://1452.robmunger.com/l4/section4/

Page URL: https://1452.robmunger.com/l1/keyformulas/
Feedback Form Message: The equation for standard deviation: arrows aren't pointing to the terms
Timestamp: 2024-06-30T17:50:40.946Z
Response: https://1452.robmunger.com/l4/section4/

Page URL: https://1452.robmunger.com/l1/keyformulas/
Feedback Form Message: What is the variance of Nat’s first complete portfolio, with 
Variance = .135^2 = 0.018225 
b/c sqrt(0.018225) = .135
0.018225*100 = 1.8225%
Therefore, I think it should be the square root of 182.25 or 13.5%
Timestamp: 2024-06-30T18:40:12.546Z
Response: https://1452.robmunger.com/l4/section4/

Page URL: https://1452.robmunger.com/l1/diversification/
Feedback Form Message: Hi Rob,
I'm confused about how the σ_p is calculated. Why doesn't it include a covariance term?
​=.5×20%+.5×12%=16%
Timestamp: 2024-06-30T21:07:17.390Z
Response: https://1452.robmunger.com/l4/section4/

Page URL: https://1452.robmunger.com/l1/rewardtovolatility/
Feedback Form Message: The Sharpe ratio of the risky portfolio is the slope of the CAL, and it tells you how much risk-premium we get for each unit of risk we take. 
*How do you interpret the Sharpe ratio of the complete portfolio?*
Timestamp: 2024-06-30T21:10:11.203Z
Response: https://1452.robmunger.com/l4/section4/

Page URL: https://1452.robmunger.com/
Feedback Form Message: It would be nice to have the sidebar of menus uncollapsed at default.
Timestamp: 2024-06-30T21:59:34.689Z
Response: https://1452.robmunger.com/l4/section4/

Page URL: https://1452.robmunger.com/l2/bigpicture/
Feedback Form Message: What's Beta?
Timestamp: 2024-07-01T22:33:03.765Z
Response: https://1452.robmunger.com/l4/section4/

Page URL: https://1452.robmunger.com/l3/2000/
Feedback Form Message: what is the security market line? is the same CAPM line?
Timestamp: 2024-07-02T23:18:22.580Z
Response: https://1452.robmunger.com/l4/section4/

Page URL: https://1452.robmunger.com/l3/2000/
Feedback Form Message: Can Beta be negative?
Timestamp: 2024-07-03T00:07:17.465Z
Response: https://1452.robmunger.com/l5e/sectione1/

Page URL: https://1452.robmunger.com/l3/2000/
Feedback Form Message: Can you cover Q11 in the HW? If the simple CAPM is valid, is the situation shown below possible?  
Timestamp: 2024-07-03T00:08:21.122Z
Response: https://1452.robmunger.com/l5e/sectione1/

Page URL: https://1452.robmunger.com/l0/gradpapers/
Feedback Form Message: Can the graduate paper be a an analysis of a single stock?
Timestamp: 2024-07-04T17:53:56.990Z
Response: https://1452.robmunger.com/l5e/sectione1/

Page URL: https://1452.robmunger.com/l3/capmdivhpr/
Feedback Form Message: About this question:

Suppose 𝑟𝑓=1%, r=1%, 𝛽=1.1, and the market risk premium is 11%. If you expect a stock to be worth $100 in 1 year and you expect a $4 dividend, what is the fair price for the stock today?

Why are we subtracting the risk-free rate to 11% if 11% is the market risk premium? Isn't the market risk premium already including into consideration the risk free rate? Looking back at the "Notes on CAPM from E2000",  E(rM)−rF is defined as the market's risk premium.

I really appreciate any help you can provide.  
Timestamp: 2024-07-05T19:27:28.268Z
Response: https://1452.robmunger.com/l5e/sectione1/

Page URL: https://1452.robmunger.com/l4/section4/
Feedback Form Message: Can we calculate SD in portfolio with an option strategy? 
Timestamp: 2024-07-06T00:40:23.033Z
Response: https://1452.robmunger.com/l5e/sectione1/

Page URL: https://1452.robmunger.com/l4/summary/
Feedback Form Message: Could you discuss the contradictions to the semi-strong form of the EMH?
Timestamp: 2024-07-06T17:23:27.220Z
Response: https://1452.robmunger.com/l5e/sectione1/

Page URL: https://1452.robmunger.com/2011/notes/
Feedback Form Message: Hi Rob, I thought that you buy a put if you think the stock price will fall, but in your notes above it says "You buy a put if you think the price will rise." Can you please help clarify? 
Timestamp: 2024-07-09T21:21:17.160Z
Response: Fixed!

Page URL: https://1452.robmunger.com/l5-old/section5/
Feedback Form Message: options at the money will always have intrinsic value equal to zero? 
Timestamp: 2024-07-09T23:28:24.065Z
Response: https://1452.robmunger.com/l5e/sectione1/

Page URL: https://1452.robmunger.com/l5-old/section5/
Feedback Form Message: If option is at expiration will have zero time value? what if in the money? 
Timestamp: 2024-07-09T23:28:57.359Z
Response: https://1452.robmunger.com/l5e/sectione1/

Page URL: https://1452.robmunger.com/l5o/practice/solutiontypes/
Feedback Form Message: You have Bought a K=$100 Put. It is about to expire. Suppose S=$90 and Premium=$2.

Will you exercise this option?
What is your Per-Share Profit or Loss (P/L)?

This page states that this option is OUT of the market, but I'm confused now. If the buyer exercises the option, it must be IN the market. I'm about to start the exam and now I'm confused! 
Timestamp: 2024-07-16T00:10:59.748Z
Response: Fixed!

Page URL: https://1452.robmunger.com/l5o/solutionsps3/
Feedback Form Message: Hi Rob,
Have you posted the solutions video on Cavas yet?  
Timestamp: 2024-07-16T04:48:05.868Z
Response: https://1452.robmunger.com/l8/section8/

Page URL: https://1452.robmunger.com/l6/bondsspreadsheet/
Feedback Form Message: Hey Rob, link for the spreadsheet is not working. 
Timestamp: 2024-07-19T00:51:20.188Z  
Response: https://1452.robmunger.com/l8/section8/

Page URL: https://1452.robmunger.com/l6/bondsspreadsheet/
Feedback Form Message: Hey Rob, link for the spreadsheet is not working. 
This 1drv.ms page can’t be foundNo webpage was found for the web address: https://1drv.ms/x/s!AvbXd4_8gfP_irA9OYoetQ-pZujsbA?e=M2BqNe
HTTP ERROR 404
Timestamp: 2024-07-19T00:51:35.087Z
Response: https://1452.robmunger.com/l8/section8/

Page URL: https://1452.robmunger.com/l6/bondsspreadsheet/
Feedback Form Message: Sorry, something went wrong
Our server is having a problem. We're working to fix it as soon as we can, so try again in a few minutes.
Timestamp: 2024-07-19T00:51:55.699Z
Response: https://1452.robmunger.com/l8/section8/

Page URL: https://1452.robmunger.com/l6/section6/
Feedback Form Message: What's the difference between yield to maturity and asked yield to coupon maturity?
Timestamp: 2024-07-19T22:16:15.108Z
Response: https://1452.robmunger.com/l8/section8/

Page URL: https://1452.robmunger.com/l6/bondsspreadsheet/
Feedback Form Message: The RATE() formula requires nper, pmt, pv, [fv], [type], [guess]. 
What's 'type' and 'guess'?
Timestamp: 2024-07-19T22:23:56.496Z
Response: https://1452.robmunger.com/l8/section8/

Page URL: https://1452.robmunger.com/l6/taxexemptbondex/
Feedback Form Message: type II: find r_m
"Note: 𝑟_𝑚 here is essentially the “after tax” rate." What does this mean? 
Timestamp: 2024-07-20T01:50:19.640Z
Response: https://1452.robmunger.com/l8/section8/

Page URL: https://1452.robmunger.com/l6/taxexemptbondex/
Feedback Form Message: Why do people in the higher tax bracket prefer muni?
Timestamp: 2024-07-20T01:56:08.231Z
Response: https://1452.robmunger.com/l8/section8/

Page URL: https://1452.robmunger.com/l6/section6/
Feedback Form Message: How to calculate before-tax holding-period return? 
Timestamp: 2024-07-20T17:00:52.657Z
Response: https://1452.robmunger.com/l8/section8/

Page URL: https://1452.robmunger.com/l6/section6/
Feedback Form Message: When calculating the bond price using the short cut; if the bond pays once per year % , r value is it full interest or half as was presented in the slides? 
Timestamp: 2024-07-20T17:04:18.183Z
Response: https://1452.robmunger.com/l8/section8/

Page URL: https://1452.robmunger.com/l6/section6/
Feedback Form Message: Can we have Pre-tax and after tax examples? Holding period examples? 
Timestamp: 2024-07-23T02:50:45.162Z
Response: https://1452.robmunger.com/l8/section8Page URL: https://1452.robmunger.com/l7/notes/
Message: There is a mistake here on Rule 5 :) for the duration of level perpetuity
Timestamp: 2024-07-30T21:51:53.369Z

Page URL: https://1452.robmunger.com/l10/notes/
Message: Hi Rob, 
The slides say that US equities represent 41% of the world equities (Slide 2), but your notes say 43%. Which one is correct? This is a hw question too and both options are listed. 
Timestamp: 2024-08-02T16:12:01.654Z

Page URL: http://localhost:4321/
Message: Hi Rob, your website looks great on my iphone.
Timestamp: 2024-09-12T23:46:00.179Z

Page URL: https://1920.netlify.app/l3/3outline/
Message: You own a T-Bill with a 13 week maturity that yields 22 bps over that 13 week time period. What is its effective annual rate?

✔ Click here to view answer
T = 13/52 = 0.25
1/T = 1/.25 = 4 = n
EAR = (1+ .0022)^(1/.25) -1=0.0088=.88%  ✅
why n is 4? also can explain how did you get T?

Timestamp: 2024-09-26T02:13:55.154Z

Page URL: https://1920.netlify.app/l3/practiceproblems/
Message: Hello Rob, please clarify where did the 3% come from or should that be 2%.  Thank you! 
Timestamp: 2024-09-26T21:42:00.420Z

Page URL: https://1920.netlify.app/l3/practiceproblems/
Message: Last question about the T-bills: suggested 10.33% as Risk premium is a typo. Should be 11.33%. 
Timestamp: 2024-09-27T11:00:35.687Z

Page URL: https://1920.netlify.app/l3/earvsapr/
Message: Is equation 6 in "But Bruce uses T, not n" correct? Seems like APR/n might want to be T*APR. At least, I get the same numbers when I rewrite it like that with the version of eqn 6 that uses "n"
Timestamp: 2024-09-27T21:58:22.739Z

Page URL: https://1920.netlify.app/l3/3outline/
Message: rr=rn-i
16.4%=17.8%-i  

Yes but the question is asking for what i is, which would be .014 or 1.4% inflation rate, no?
Timestamp: 2024-09-27T22:58:57.651Z

Page URL: https://2000.robmunger.com/l4/classicomo/
Message: should not aa different year be used like 2005 as opposed to 2020, for an OMO, because that tool is not used by the Fed in 2020?
Timestamp: 2024-09-28T20:32:40.005Z

Page URL: https://1920.netlify.app/l3/3outline/
Message: Typos in section: EAR vs APR vs Period (r(t) rates, in between first and second slides.
Fractions in sentence -> 
Note that T is defined as \frac{T=1}{n}. Algebra tells us that\frac{n=1}{T}
Should probably be T=\frac{1}{n} and n=\frac{1}{T}, respectively.
 
Timestamp: 2024-09-29T18:26:06.540Z

Page URL: https://1920.netlify.app/formulas/
Message: Crossreferencing the EAR formula against https://1920.netlify.app/l3/earvsapr/
suggests that the EAR formula here is missing a - 1, i.e. 
currently reads 
EAR=(1+r_f(T))^(1/T)
when according to the other page should read
EAR=(1+r_f(T))^(1/T) - 1 
Timestamp: 2024-09-29T18:46:19.054Z

Page URL: https://2000.robmunger.com/l5/examples/
Message: -6.50
Timestamp: 2024-10-07T04:53:55.135Z

Page URL: https://2000.robmunger.com/l6/6outline/
Message: 1) In the private equity purchase example, the answer isn't explicitly given for the question "should you purchase?". 2) Also, I am not clear why we are solving for i. We are given the cost of capital, so why couldn't we evaluate this decision by saying PVInflow - PVOut 
So
280M/(1.14^2) = $215,450,907.97 
minus
180M
=
a positive number, so you should invest.
That's how I thought to evaluate it. Or are you comparing in your method the 24.9% IRR, which is higher than the 16% cost of capital, and since the IRR is higher you'd want to do it because you'd make more than the cost of borrowing? - Jamie Mandell 
Timestamp: 2024-10-13T18:23:55.556Z

Page URL: https://2000.robmunger.com/l6/6outline/
Message: 1) In the private equity purchase example, the answer isn't explicitly given for the question "should you purchase?". 2) Also, I am not clear why we are solving for i. We are given the cost of capital, so why couldn't we evaluate this decision by saying PVInflow - PVOut 
So
280M/(1.14^2) = $215,450,907.97 
minus
180M
=
a positive number, so you should invest.
That's how I thought to evaluate it. Or are you comparing in your method the 24.9% IRR, which is higher than the 16% cost of capital, and since the IRR is higher you'd want to do it because you'd make more than the cost of borrowing (and in this method, it's more precise because we can decide if that much higher % is worth it)? - Jamie Mandell 
Timestamp: 2024-10-13T18:25:33.180Z

Page URL: https://2000.robmunger.com/l6/6outline/
Message: 1) In the private equity purchase example, the answer isn't explicitly given for the question "should you purchase?". 2) Also, I am not clear why we are solving for i. We are given the cost of capital, so why couldn't we evaluate this decision by saying PVInflow - PVOut 
So
280M/(1.14^2) = $215,450,907.97 
minus
180M
=
a positive number, so you should invest.
That's how I thought to evaluate it. Or are you comparing in your method the 24.9% IRR, which is higher than the 16% cost of capital, and since the IRR is higher you'd want to do it because you'd make more than the cost of borrowing (and in this method, it's more precise because we can decide if that much higher % is worth our labor)? - Jamie Mandell 
Timestamp: 2024-10-13T18:25:54.466Z