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Professor Ikram
United States
เข้าร่วมเมื่อ 23 ส.ค. 2006
No matter what your profession or career of choice, you ABSOLUTELY need to understand the basic tenets of finance ... your personal and professional success depends on it!
My name is Atif Ikram (Ph.D). I am a Professor of Finance at Arizona State University, and I have created this channel to promote financial literacy. My educational videos are geared towards students, young professionals and small/medium business owners who have limited to no background knowledge in corporate/personal finance.
Feel free to follow me on LinkedIn: www.linkedin.com/in/atif-ikram-654a309/
My name is Atif Ikram (Ph.D). I am a Professor of Finance at Arizona State University, and I have created this channel to promote financial literacy. My educational videos are geared towards students, young professionals and small/medium business owners who have limited to no background knowledge in corporate/personal finance.
Feel free to follow me on LinkedIn: www.linkedin.com/in/atif-ikram-654a309/
A Common Mistake People Make With Retirement Contributions, and How You Can Avoid It.
In an insightful field experiment, Saurabh Bhargava (Carnegie Mellon University) and Lynn Conell-Price (Consumer Financial Protection Bureau) document that many employees forgo GUARANTEED returns of 100 - 300% by making poor decisions with respect to their 401k contributions.
Why do they do this, and how can it be avoided? Watch the video.
You can read the full paper here: papers.ssrn.com/sol3/papers.cfm?abstract_id=4056407
#financialplanning #retirementplanning #investing
Why do they do this, and how can it be avoided? Watch the video.
You can read the full paper here: papers.ssrn.com/sol3/papers.cfm?abstract_id=4056407
#financialplanning #retirementplanning #investing
มุมมอง: 241
วีดีโอ
How Do Your Peers’ Retirement Saving Decisions Affect Yours?
มุมมอง 7914 วันที่ผ่านมา
🤔Suppose you learnt how much your colleagues are #saving in the company's #401k plan. How would you react? Would you #save more?⁉️ Some workplaces certainly think so, which is why they often provide their employees information about how many of their peers are enrolled in and contributing towards the company's #retirement plan. In a very insightful study, John Beshears, James J. Choi, David Lai...
How Your Social Interactions May Be Hurting Your Investment Returns!
มุมมอง 7121 วันที่ผ่านมา
📊 BE CAREFUL the next time your friends start talking about #stocks and #investments at a get together! ⚠️ 💡 In a very interesting recent study, Michael Gelman, PhD, FRM David Hirshleifer, Yaron Levi and Liron Reiter Gavish use the number of local #soccer games to investigate how the intensity of our #social interactions influence our #investing behavior and choices. You're definitely going to ...
Don't Make This Behavioral Mistake When Making Credit Card Payments!
มุมมอง 7628 วันที่ผ่านมา
Recent research by John Gathergood, Neale Mahoney, Neil Stewart and Jörg Weber analyzed 1.4M credit card accounts in UK to uncover a surprising behavioral quirk when it comes to how people make their credit card payments: balance-matching! In this video, I provide an overview of their findings and also some guidelines on the optimal way to make your credit card payments (if your goal is to redu...
MM1, MM2 and WACC with Corporate Taxes
มุมมอง 2042 หลายเดือนก่อน
In this video, I explain MM1 and MM2 in the presence of corporate taxes. I particularly explain what is meant by interest tax shields, and why, in the presence of corporate taxes, leverage makes the firm more valuable (by the present value of the interest tax shields). Towards the end, I also show how firm value and WACC can be viewed graphically in a world of corporate taxes.
MM1, MM2 and WACC in PERFECT Capital Markets: A Numerical Illustration
มุมมอง 1222 หลายเดือนก่อน
In this video, I use a numerical example to illustrate Modigliani and Miller's propositions 1 and 2, i.e. MM1 and MM2. Specifically, I mathematically show how changes in capital structure do not change the weighted average cost of capital (WACC), leaving the value of levered firm unchanged. I also show how MMII lines with the Hamada equation (which expresses the relationship between equity beta...
Understanding MM2 In PERFECT Capital Markets
มุมมอง 1522 หลายเดือนก่อน
In this video, I explain the math and intuition behind MM2. You will understand how MM1 actually begets MM2, i.e. how they are not distinct propositions.
Understanding MM1 In Perfect Capital Markets
มุมมอง 2323 หลายเดือนก่อน
In this video I explain the famous MM1 Proposition of Capital Structure. Specifically, I explain (grpahically, numerically, AND intuitively) why Modigliani and Miller proposed that (undercertain conditions), capital structure does not matter (for value). I also explain what that implies about the imapct of capital structure on a firm's weighted average cost of capital (WACC).
The Question of Capital Structure: Context for MM1 and MM2
มุมมอง 2263 หลายเดือนก่อน
In this video, I introduce the topic of Capital Structure. I briefly explain what Capital Structure means, and what is the central question we are trying to answer when we are studying Capital Structure.
RED ALERT! The Color of Your Losses Is Imapcting Your Trading Behavior!
มุมมอง 874 หลายเดือนก่อน
🟥 Does color influence #investment behavior? Would you #trade or #invest differently if you saw your (prospective) losses in BLACK rather than RED?⁉️ 📜 In a very interesting paper, William Bazley, Henrik Cronqvist and Milica Mormann conduct a series of experiments to explore this very question - and find some very insightful answers. 📽️ Check out this short video below for a brief summary of th...
The Numbers Game: Why Investors Only Share What Makes Them Look Smart!
มุมมอง 1654 หลายเดือนก่อน
Imagie you come across two articles making a case for NVIDIA ... one is mostly qualitative, while the other is filled with rigorous financial and quantitative analysis ... 📊 Which one do you READ? Which one do you SHARE with your friends or investing group? 📢 Hailiang Chen (HKU Business School) and Byoung-Hyoun Hwang (Nanyang Business School) explore this very question and find some very inter...
How Your Distorted Beliefs Are Sabotaging Your Retirement Goals
มุมมอง 1365 หลายเดือนก่อน
In this video, I share the findings of a very insightful study by Dr. Rawley Heimer (ASU) and his co-authors, on how our beliefs about our mortality often tend to be distorted and adversely impact our consumption and saving decisions. Main finding: Due to certain behavioral biases, young people tend to underestimate their expected lifespan, which causes them to overconsume (and undersave) for r...
Factors that Influence the Magnitude of Beta
มุมมอง 1667 หลายเดือนก่อน
In this video I explain how and why the beta is determined by cyclicality of revenues, operating leverage and financial leverage. In the process I also help explain the difference (and relationship) between equity beta (aka levered beta) and asset beta (aka unlevered beta). ABOUT ME: My name is Atif Ikram. I am a Clinical Professor of Finance at Arizona State University (W.P. Carey School of Bu...
How Social Media Buzz Distorts Stock Prices! Key Insight For Your Trading Strategy!
มุมมอง 677 หลายเดือนก่อน
📊 Does Social Media Buzz Around Earnings Announcements Affect Stock Prices? The Answer May Surprise You!😲 In a recent study, Edna Lopez Avila, Charles Martineau and Jordi Mondria analyzed more than 150 MILLION posts on Stocktwits to understand how users' #earnings expectations and sentiments around a company's #earningsannouncement influences its stock price 💹Check out the video! Some very cool...
Estimating Beta| Procedure and Guidelines Using Apple Inc.'s Stock Returns
มุมมอง 2717 หลายเดือนก่อน
In this video, I explain how you can estimating the beta of a stock using historical data. I show the estimating procedure two different ways using Apple's stock returns. I also explain the intuition behind the estimation procedure and why different finance websites and periodicals may show different estimates of beta for the same company. Resources: 1. Google Sheet with Apple's Returns and Bet...
Estimating Market Risk Premium Using Dividend Discount Model Approach | Calculation and Guidelines
มุมมอง 3607 หลายเดือนก่อน
Estimating Market Risk Premium Using Dividend Discount Model Approach | Calculation and Guidelines
A Big Mistake that Institutional Investors Make - And How to Avoid It!
มุมมอง 1537 หลายเดือนก่อน
A Big Mistake that Institutional Investors Make - And How to Avoid It!
Estimating Market Risk Premium Using Historical Data - Calculation and Guidelines
มุมมอง 1.2K7 หลายเดือนก่อน
Estimating Market Risk Premium Using Historical Data - Calculation and Guidelines
Implementing CAPM: How to Estimate the Risk-Free Rate | The General Approach
มุมมอง 3897 หลายเดือนก่อน
Implementing CAPM: How to Estimate the Risk-Free Rate | The General Approach
Is Saving More For Retirement Making You More Indebted?
มุมมอง 1077 หลายเดือนก่อน
Is Saving More For Retirement Making You More Indebted?
Estimating Cosf of Equity and Cost of Capital: An Example of A 100% Equity-Financed Firm
มุมมอง 3277 หลายเดือนก่อน
Estimating Cosf of Equity and Cost of Capital: An Example of A 100% Equity-Financed Firm
How to Estimate Cost of Equity and Cost of Debt to Estimate Cost of Capital: The General Approach
มุมมอง 4877 หลายเดือนก่อน
How to Estimate Cost of Equity and Cost of Debt to Estimate Cost of Capital: The General Approach
Why Do Most People Don’t Select The Cheapest Mortgage?!
มุมมอง 3487 หลายเดือนก่อน
Why Do Most People Don’t Select The Cheapest Mortgage?!
How to Pursue College Education To Reduce Income Uncertainty
มุมมอง 818 หลายเดือนก่อน
How to Pursue College Education To Reduce Income Uncertainty
Factors to Consider When Deciding to Add a Fund to an Existing Portfolio | Sample CFA Problem
มุมมอง 1058 หลายเดือนก่อน
Factors to Consider When Deciding to Add a Fund to an Existing Portfolio | Sample CFA Problem
Relationship Between Unlevered Beta and Levered Beta | Part 3 of 3: With Debt AND Corporate Taxes
มุมมอง 3988 หลายเดือนก่อน
Relationship Between Unlevered Beta and Levered Beta | Part 3 of 3: With Debt AND Corporate Taxes
Relationship Between Unlevered and Levered Beta | Part 2 of 3: With Debt, No Corporate Taxes
มุมมอง 2878 หลายเดือนก่อน
Relationship Between Unlevered and Levered Beta | Part 2 of 3: With Debt, No Corporate Taxes
Arithmetic Mean vs Geomeric Mean | Sample CFA Problem (Using Excel)
มุมมอง 1408 หลายเดือนก่อน
Arithmetic Mean vs Geomeric Mean | Sample CFA Problem (Using Excel)
Risk Aversion and Investment Choice - Sample CFA Problem (Using Excel)
มุมมอง 2568 หลายเดือนก่อน
Risk Aversion and Investment Choice - Sample CFA Problem (Using Excel)
I am Lee I come from South Coreea and I wood like to ask you what do mean bye "present value " Do you mean presen is synomim wiyh jail that worth 10.000 ?
@@Potencyfunction hi Lee. Present value means value of the investment today, or value of the investment in the present.
The info is great, but the weird thing happening with his hands is very distracting.
Professor, some suggestions: unscrunch your forehead and stop the forced hand steepling when you're doing videos, it looks awkward.
I appreciate the candid feedback, thank you! Forehead un-scrunching will be tricky - it happens automatically when I get excited about sharing interesting findings (which is almost always! :) ) ... but I will definitely try! Thanks again!
Excellent work professor....thank you...... can you explain if we buy a Bond and the first payment due has already passed few months...then we don't get full payment for that coupon ...how do we adjust the formulae in such a case..which is more practical situation ...many thanks for your help !
😢
Hey nice video. But i don't understand how or what you calculated to get 20.80% in 5:08
3:45 YTM by using RATE formula
Excellent content!
really a gem this channel
excellent explanation!!
They can tax 100% of your taxable income if you make over $230,000.. It's a wonder why we're in debt when there's less and less incentive for people that live on $35,000 a year and the government just gets its welfare check from the working populace just to blow it on inexcusable situations or elected representatives that do little to defend against them for the sake of the people they're supposed to be vying for. So when you look at these numbers, why wouldn't a corporation look to avoid paying 172% on taxable income after making upwards of $600,000 annually. I sure wouldn't want them(the direct beneficiaries of our tax provisions) to feel like they had the free reign to spend without consequence like children living on their daddy's dollar. Time to beat them at their own games.
This content is so good! Thank you Professor.
you don't divide the yearly interest rate by 12 to calculate the monthly interest rate. Look it up.
Thanks. Actually I do. Please check out the formula I am using to calculate the payment at 2:47.
Great Help Man!! I was doing college work and this really helped me understand how to calculate my problem. THANKS!
azzzzumes?
8 minutes wasted
@@aarushxrajput sorry to hear that buddy! Care to tell me why?
This video was the 4th one I’ve watched on the topic, and I was only able to understand after this one. Thank you so much!
Hi it is very nicely explained.. Is there any other formula to create summary table, wherein we can change input directly like Data table and result get automatically updated
Just to tell you that I'm here because of sir Naeemullah Chaudhry's recommendation. We had been colleagues in ICI Polyester 26 years ago. Stay blessed Prof Ikram 🌹👍💖 you are doing great service 🙏🏻
GOD BLESS YOU
I am a little confused by the cost of equity...I am getting 10.65% and not 10.15%
Hello professor, Very useful! Thank you as there are many tips that really help me in this video. I am learning principles of finance. Not sure you already have a line by line review of a balance sheet as I would like to learn the details! Thank you very much !
more complicated then it needs to be
Well explained. Once you understand the difference between price and value, the outlook of the explanation given becomes easier.
Can you do a video of portfolio?
Ended up here while I was searching for the growing annuity formula. Very helpful! Thank you Professor! I am a subscriber now
can you help with monthly coupon payments how to solve ytm in excel
Sure. If you continue watching this video, at about 6:22 I start walking you through another example in which the coupon payments are semi-annual. With MONTHLY coupon payments, change "Coupons Per Year" to 12 and "Number of Time Periods" to "Time to Matuity x 12". Face Value remains the same = $1,000. Hope this helps.
Respectfully, how did you arrive at the Price of Bond A and Bond B at different interest rates?
Hi! I disounted the semi-annual coupon payments at the semi-annual yield (or required rate of return). I recommend watching my video on "Bond Prices and How They Are Related to Yield to Maturity" to understand the concept and calculation: th-cam.com/video/BqFc3iosyqQ/w-d-xo.htmlsi=KKF4EVj7opX1E1d8
Hello prof, do you have a video where you explain the option to delay / wait in order to figure out if its high or low demand?
Great content professor! Please create a lecture video on the Black Sholes Merton model. It would be great to learn about this really intricate model central to understanding options.
That’s a great suggestion, thank you! Will create something soon.
@@professorikram More power to you!
thank you! this was very helpful
Thank you so much; you've simplified it for me!
Extremely useful Video. Thank you so much, Sir
Im cooked
😊
This playlist is a godsend. The ability to present the material is on par with some of the best educators on YT.
I literally used this video playlist as a base for making my educated fixed investment decisions.
An amazing, clearest of all pack of videos in this playlist covering the most fundamental concepts of finance.
Hi! Hello, I have a question, if the rates go down (the YTM) halfway, is the FV discounted at the initial or final rate? Thanks for this video.
Great question. At ANY given point in time, the price of bond depends on coupon payments and the YTM at that time. So if the rates (i.e. YTM) goes down half way, the PV will be calculated using that lower yield, meaning price of the bond will go up. Many times, bond investors invest in a 10-year or 20-year bond, not because they want to hold on to it till maturity, but because they are hoping that in a few years (or months) interest rates (and therefore yields) will go down, causing the price of their bonds to increase - at which point, they can sell their bonds at a profit and move on to other investments. Hope this helps! Thanks for the question.
@ Thanks! Greetings from Colombia 👍
really good video made a lot of sense!
what if they don't give you a face value, only a nominal value (300k, 1,2m, 10m etc), am I using those as FV? (I want to do a fair valuation of a portfolio of 7 bonds), should I use $1000 as FV?
Yes, most US corporate bonds have a face value of $1,000. What you can also do is assume a value of $1,000 and then express the price as a percentage of face value. For instance, if based on a FV of $1,000 the price comes out to $950, you can say the price is 95% of FV. This can standardize things across bonds with different face values.
Very informative and well explained video. The question would be. How the percent and returns for each state of the economy are determined? Exist some websites, where the information can be found. Thank you for teaching Professor.
Waw, that helped a lot. That was a very simple explanation, thank you Prof. Ikram.
Thank you so much! This was very informative and cleared up all the confusion I had from my class.
This channel needs way more subscribers than this. The info and the way it's presented is top-notch.
That’s very kind of you! Really appreciate your support.
Great vid. Ar the end you should have circled the NPV value. Not the -C0
This whole playlist shouild have many hundreds of thousands of views.
That's very nice of you to say. Thank you!
thanks! i’m doing a presentation about this topic, this is a huge help!
This vid should have way more views as it addresses precisley the confusion points most people have when it comes down to bond pricing.
Excellent video and explanation. Thanks, Professor!
Nice, but, isn’t this explanation in fact incorrect? I understand that current yield does not take into account compounded interest but yield to maturity does. If it is like that then in the case of bonds bought at par you should never have a situation where current yield = yield to maturity (as indicated in the video). YTM should always be bigger - because it includes interest on interest on the coupons received.
The distinction between current yield and yield to maturity is not based on compoun interest, per se. YTM accounts for changes in the price of the bond over time, while current yield doesn't. In some sense, it is the same as the distintion between dividend yield and stock return: If you buy a stock for $50, and then one year later you get a $5 dividend, AND the price of the stock is $60, then dividend yield is 10% ($5/$50) and capital gains (or return from price appreciation) is 20% [(60-50)/50]. Thus, your TOTAL return from investing in the stock is 30%. In this example, IF the stock were instead a bond, then you could say that 10% is the current yield, whereas the TOTAL return is the Yield to Maturity [This is not technically correct, but I just want you to understand the conceptual distinction)]. Hope this helps. P.S. No YTM is NOT always bigger than current yield. If the price of the stock decreases, you can make a loss and your total return can be less than your dividend yield. Just like that, if the price of bond falls, YTM can be less than current yield.