As someone who studied investment analysis in university back in the 80s (CAPM etc) what a pleasure it is to revisit all this but with so many more bells and whistles this time, and with real life examples and relevancy. I'll be honest, I'm here as a capitalist looking to avoid over-priced assets and to make money on the funds I put at risk buying equities. That you have chosen to make these lectures available free of charge is highly commendable and, in and of itself, removes any risk I might incur in signing up for a course or buying a book, the contents of which I am not completely certain. Thank you soooo much for this.
This course is a hidden gem. Everyone learning Corp. Fin. should know this amazing classes. Thank you Damodaran! Hope you get inspiration to post more full courses like this.
I noticed on slide 18 that the formula says (std deviation equity)/(std deviation country bond). Just want to verify the top line should really be (std deviation country equity) to match the bottom. And I really want to extend my gratitude to you for all the information you post. It is much appreciated.
But sir you did not tell us,how to calculate std error. Yes, you mentioned the formula but dont know what is that annualized std deviation in stock price?
It is interesting that surveys show a higher risk premium following equity rallies and lower ones following sell-offs. Intuitively, wouldn't we expect risk-aversion to increase following equity sell-offs, resulting in higher risk premiums?
Can someone clear the confusion that i have. Sir has used default spread but also using the name country risk premium whereas the two rates are different aren't they?
The more risk-averse, the less return you will demand as the less risk you want right? So why does option b between 3-5% represents the least averse group? video at 3:20
in my understanding, more risk-averse people require more reward to get into an investment sounds risky to them, that's why 3-5% (which equity risk premium is 0-2%) is for those people who would like to take any kind of risk and try, less risk-averse in a way.
@@xiaosongliu9588 I see I forgot the problem being discussed is shifting your asset to a mutual fund; the more return we require the more risk-averse we are. Thanks!
As someone who studied investment analysis in university back in the 80s (CAPM etc) what a pleasure it is to revisit all this but with so many more bells and whistles this time, and with real life examples and relevancy. I'll be honest, I'm here as a capitalist looking to avoid over-priced assets and to make money on the funds I put at risk buying equities. That you have chosen to make these lectures available free of charge is highly commendable and, in and of itself, removes any risk I might incur in signing up for a course or buying a book, the contents of which I am not completely certain. Thank you soooo much for this.
This course is a hidden gem.
Everyone learning Corp. Fin. should know this amazing classes.
Thank you Damodaran! Hope you get inspiration to post more full courses like this.
Thank you for your determination to making such valuable knowledge free! Respect for you from Russia;)
THIS IS GOLD!
Thank you so much, Professor. May God bless you!
I noticed on slide 18 that the formula says (std deviation equity)/(std deviation country bond).
Just want to verify the top line should really be (std deviation country equity) to match the bottom.
And I really want to extend my gratitude to you for all the information you post. It is much appreciated.
Thank you for teaching us Professor!
Many thanks the wonderful videos series. hugely helpful. Truly respect your dedication towards the community....
you are amazing. cheers from Brazil
excellent teacher
But sir you did not tell us,how to calculate std error.
Yes, you mentioned the formula but dont know what is that annualized std deviation in stock price?
It is interesting that surveys show a higher risk premium following equity rallies and lower ones following sell-offs. Intuitively, wouldn't we expect risk-aversion to increase following equity sell-offs, resulting in higher risk premiums?
No, because sell-offs indicate that equities have become cheaper. Why would you want more compensation to buy something cheaper?
Can someone clear the confusion that i have. Sir has used default spread but also using the name country risk premium whereas the two rates are different aren't they?
The more risk-averse, the less return you will demand as the less risk you want right? So why does option b between 3-5% represents the least averse group? video at 3:20
in my understanding, more risk-averse people require more reward to get into an investment sounds risky to them, that's why 3-5% (which equity risk premium is 0-2%) is for those people who would like to take any kind of risk and try, less risk-averse in a way.
@@xiaosongliu9588 I see I forgot the problem being discussed is shifting your asset to a mutual fund; the more return we require the more risk-averse we are. Thanks!
Can i get these notes for revision please
Sir please do make notes for the people who can't really hear your voice my friend has hearing problem so please do give the recitation notes
There are subtitles