Finance Materials  
     
 

Angelo Mozilo was the CEO of Countrywide. This is his testimony, where he tried to explain why he nearly destroyed his company with debt as he tried to pop the stock and cash in his stock options.

 
     
 

This paper contains discriptions of the different capital budgeting tools (NPV, IRR, MIRR, PB, DPB)

  
     
   
     
 

The Economics Department as San Jose State has calculated Country Risk Premiums, which you can use when trying to calculate the appropriate rate of return when valuing a project in another country.

 
     
   
     
   
     
   
     
   
     
 

Nothing complicated. But, this will give you a different perspective on mathematics. Mathematics is a languge. A great deal of frustration is caused by teachers who never let their students in on this secret.

 
     
   
     
 

For a small fee, you can conduct Monte Carlo simulations on this website.

 
     
   
     
 

Jesus had something profound to say about risk You will find it in Matthew 25: 14-30.

  
     
 
  • Power Law Distributions

    This is an example of a power law distribution. This demonstrates that normal distribution statistical measures make no sense when with a power law distribution.

    This example also demonstrates that normal distribution statistical measures make no sense when with a power law distribution.

 
     
   
     
 

The Japanese Word for Risk is kiki, which is composed of two characters. The first character is danger and the second character is opportunity.

 
     
   
     
 

This is a short quiz to test your risk tolerence. Are you risk seeking or risk averse?

  
     
 

This tool automatically calculates average return and volatility for any period from 1950 to present.

 
     
 

This book by Professor Aswath Damodaran from NYU is one of the best books around on the topic of risk. Professor Damodaran allows it to be downloaded for free from his website. (Click on Books & Support)

  
     
 

This is my outline from my Taxation of Financial Instruments class, which I took through the New York University Law School during the Fall of 2008.

  
     
 

The TED Spread is a measure of systemic credit risk on the economy. It is the difference between the 3-month LIBOR rate (a rate at which large banks lend to each other) and the 3-month Treasury Bill rate (thought to be risk free). When credit risk increases and people flee to the safety of T-Bills, the TED Spread increases.

 
     
 

This is a great slide show on the financial crisis by Dennis Carver, a faculty member at the Utah Campus of the University of Phoenix.

  
     
 

Taleb. This article explains when math based on the normal distribution applies and when it does not.

 
     
 

This is an excellent paper written by Richard Kennedy explaining the 2008 Financial Crisis.