Sampling Distribution

Is it normal, t or chi - square?

Balanced Scorecard

Management accounts looks at this from a different perspective in performance measurement. Instead of looking only at financial KPIs, looks at non financial KPIs and processes.

Balance Sheet versus P & L

Short termist approach of bankers was one of the criticisms made in current financial crisis. The core was the focus on the P & L, which evaluates the company over one year period with pure focus of profit. Balance sheet is the reasonable approach as you look at the company from a cumulative perspective.

Firms

Among all economic units firms are the ones, which are most able to take risks. Economic function has always tried to accommodate this. Hedging is one example, insurance is another. 

VaR versus APT - II

I think it is about the movement from differentiation to mania when things start to break. Same thing happened with derivatives, which are brilliant products.

Star Trek

As a big fan of Star Trek and particularly Voyager series (watched all episodes of seven seasons twice and don't mind watching again), it is amazing to see how it did, does and will lead the innovations.

VaR versus APT

When I had decided on the MSc dissertation topic, my supervisor recommended to do it on Value at Risk (VaR). A risk management tool developed by JPMorgan based on confidence interval concept of statistics. She lent me few books so that I could read and familiarize myself.

It did not buy me, despite the fact that confidence interval subject is one of my favorites in statistics.

Arbitrage Pricing Theory, looked more challenging and interesting. I had to find a way to test the theory. Undefined beta coefficients found by cross sectional regression and then put into time series. It worked with many many regressions.

Value at risk is one of the concepts, highly being criticized during the current economic crisis for encouraging excess risk taking.

Transparency Is The Point

I think. Then; the more the transparency the better the big size.

Standard of Some Sort

Gold Standard was a brilliant way of managing currency fluctuations but it did not go on. And what seems to me is the limit on the amount of gold reserves is a big factor in that.

Standard of some sort such as silver and copper mix had always seeemed an ideal way of managing this since the graduate days. I believe this is more and more the case with the current emerging markets. The dilemma though is the fact that currency markets seem to be working amazingly well in market mechanisms. There seems to be an efficiency boost in dynamics of currency markets.

Private Equity - IV

Enterprise is there, competition is, high quality is.