Tsunami relief funds

Well we talk about giving back in some classes, here is a chance.

Red Cross-Red Crescent - Make a donation At some level this is not the correct use of this blog, but on another level if it helps, I am willing to break the rules. This is getting posted on all of my blogs and on the FinanceProfessor.com website itself (later tonight).

After seeing the total destruction caused by the tsunami, I decided to end my week "vacation" from posting and post a link for people to donate. To say the destruction is horrific is an understatement. Money will not make bring back the lives (estimated now at almost 80,000 and maybe 100,000) but may help reduce some of the suffering and even prevent the feared epidemics that the deaths may cause.

CNN has complied a list of aid societies. If you do not want to give to the RedCross/Red Crescent, then pick another. But please give some :)

Additionally at our Allegany Store we will be accepting donations which will be forwarded to the RedCross/RedCrescent Society. Just tell any cashier or stop at the service desk.

Reason #100000 to not smoke

CollegeJournal | On the Job

"Gradually though, where employees smoke will become less of an issue, because in Omaha and seven other states, Union Pacific won't hire smokers.'

"While obesity, stress and muscular-skeletal problems like carpal-tunnel syndrome are all on the radar screen, companies are going after smoking with particular zeal. Union Pacific's policies still aren't commonplace, but the company is far from alone in its efforts to openly discourage smoking and encourage quitting.

Home-improvement retail chain Lowe's doesn't allow smoking on its corporate campus or anywhere on its store properties, including the parking lots. And while Union Pacific relies on the honor system to ferret out smokers during the hiring process (there's a question on the job application), Alaska Airlines has gone a step further, requiring potential hires to pass a nicotine test before they can come on board.

The reason for such attention: health and workplace experts know more about smoking today. "There's so much evidence about the impact of smoking on health and productivity," says Helen Darling, president of the National Business Group on Health, in Washington, D.C. At the same time, "we also know more about how to help people quit than we did five years ago."

Grades are done and turned in :)

Just wanted to let both classes know I have turned in all of the grades and they should be available to you via http://my.sbu.edu (I think!).

Thanks again for a fun semester. I was very happy with the performance and improvement we saw.

keep in touch! jim

update on correcting

First the good news: the Finance 401 grades (both classes) are done and submitted electronically. :) but they took longer than expected.


The bad news: MBA 610 grades will not be done until tomorrow. SORRY!!! I am still working on the problems and essays. Virtually no way they will be done before midnight. I have several things to do between now and then. I will work tonight on them again. Hopefully early afternoon tomorrow.


will post class averages etc for both later...

time to run...

How is correcting going?

I have had a few students ask about grades. Short version, I hope to have grades done tonight.

I am done with the first section of 401. I just finished the essays and short problems from the second section. I have not done 610 yet, but given that there are only 16 students, I should be able to finish that this afternoon.

So, IF things go as planned, grades should be done this afternoon. Of course things never go as planned, but...lol...

Thanks for a fun semester!!! And Happy Holidays!!!

jim

401---What new chapters?

I was asked what new chapters are on the test.

The answer? Chapters 33, 34,35.

The first version of the test is done!

I would say it is easier but no one would believe me anyway.

It is fairly long of course.

Good luck!!!!

What business classes (finance classes) can teach us

I am always nervous about the first and last classes of the year. So I wanted to write out some notes for today’s class. When I began typing I just wanted to recap what the semester. But that has been done before. So I guess these are either the some of the notes to the last class or to the first graduation address. Or both!

Congratulations. You have made it. Ok, so maybe it is not graduation time yet, but you are getting there. And minimally you have made it through all but the final from this class.


So I started out with the intent to write about what finance teaches us about life in general. But then I decided to open it up even further. So this entry is what have we learned in the business classes and how can that be incorporated into our every day lives? Consider it your first graduation address.

Accounting: In accounting classes we learned the importance of having checks and balances. We learned how to read a balance sheet and that every event has positive and negative aspects (i.e. you debit some accounts, while crediting others).

Statistics: From Stats classes we learn that few things in life are certain. Therefore, the best we can do is to “play the percentages.” We also learn to make informed decisions.

Economics: Arguably economics is the most all encompassing of any of the classes we have taken. Indeed Finance is just applied economics. So to list everything we learned would take a long time, but a few of the key things we learned: Specialization makes society better off. Free trade makes both sides better off. People maximize their own utility. Things at the margin matter!

Management: Management classes tend to fall into one of two camps. One stresses the interpersonal skills necessary to be a manager. The other camp is more number based—the so-called management science. We learn much from each. From the former we are reminded that leaders are important and that how we interact matters. From the latter, we learn to be efficient, to look for ways to continually improve, and that by basing decisions on quantifiable things we can do things much better.

Marketing: We learned that it is not just what you know, but how you come across. We learned that reputation matters and that psychology is important.

Business Information Systems: In BIS we learned that you have to be technologically competent. We learned that systems are only as good as what you put into them and that systems are only as good as their weakest link.

Finance: Finance is in many ways the key holding all of this together. Finance, in the terminology of economists, finance helps to aggregate all that we have learned in other classes. But finance is even more than that. In finance, we learned

1. that compounding is very powerful. Let it work for you and not against you. This means to save early, save often, and save regularly.
2. that taxes and transaction costs matter. Therefore take advantage of tax advantaged investment accounts and watch excessive fees and trading costs.
3. that markets are pretty efficient (although maybe not perfectly so). This means that there is no free lunch so when things sound too good to be true, be skeptical.
4. that too much debt is a bad thing. Financial distress does not just happen to firms. Be careful about borrowing. Used correctly, debt is a great tool. Used incorrectly, it leads to many problems.
5. that governance matters. Just like by structuring contracts differently can influence a firms’ market value, so too our own governance influences our returns.
6. that luck sometimes is good and sometimes bad. Plan for the worse, but hope for the best!
7. that investment is important. So invest in your assets—all of your assets. Your assets include your investments (stocks, bonds, mutual funds, etc), tangible assets (real estate, baseball cards, car, etc), and intangible (reputation, goodwill, your friends, your health, your mind). What does this mean? It means that while you care for your bank balance, your real property, don’t forget your friends, your family, your health, and your reputation. Sure it may not always be fun—(driving to see a sick friend never is), but do it anyways! (see next item)
8. to think long term. Not only is most of a stock’s value derived from long term growth, so too is our value. The Enrons, the Worldcoms, and others forgot this. Sure you may have to pass up some things you want, but in the long run you will be glad you did! (indeed, drug addicts have some of the lowest discount rates known: they discount the future for short-term gains.)
9. Both diversification and specialization have their places. On one hand specialization allows us to be very good at something. However, in a constantly changing world, too much specialization can be very risky. Moreover, too much of anything will lead to staleness (and often is bad for your health too). So have varied interests, be willing to learn new things, and never stop learning.
10. that there are many ways increase utility. Money is not the only thing that makes people happy. People are REMMs and care about all things. More money is good, but so too are more free time, a better standard of living, and a clean conscience. How you draw your indifference curves is a personal decision.
    
    
    To these, I would also add the importance of

• staying confident—many of you sell yourselves short. Both collectively and individually. I am not sure if it is a function of going to a small school, or not. But you should not sell yourself short!!! IF YOU WANT IT TO BE, the education you get here is every bit as good as you could get at any school in the world. Too many of you use “it is too hard” or “no one else is doing it” or “I can’t do it” as an excuse. You can do it. You just have to want to do it!
• never get too worried about money. Yes, it is money. Yes, it matters, but only to a degree. I’ve seen too many people destroy themselves (physically and mentally) over money. Do not let it happen to you. This may mean some advanced planning and might mean you do not have the fanciest car, or the largest TV. But who cares? Along these lines, the best definition of wealth I have ever heard is Wealth = monetary wealth / wants.
• staying active. Both physically and mentally. It is way too easy to stop. Don’t stop! Learn something new every day. Read, risten, take classes. Do some physical activity every day. Run, bike, walk, you name it! But to quote Nike, JUST DO IT! You will be glad in the long run!
• having fun! Life is too short to not have fun! Find hobbies that you like doing. But also at work. Remember: Work should be enjoyable, not something you have to do!!! as Anthony Annuziado said in our class: find a job you love and you'll never have to work a day in yout life!
  
  See, I told you finance was everything :) Good luck and keep in touch!!! jim

Finals Times 401

On Thursday December 9th at 1:10 for the T,Th 11:30m class
Or
On Monday December 13th at 1:10 for the T,Th 10:00am class

The test will be in the classroom. You are allowed to bring in a cheat sheet front and back. Tomorrow in class there will be a sign up for those who wish to take it opposite their scheduled time.

The next time you are feeling sorry for yourself!

wow...

Kyle Maynard Official Website - Inspirational wrestler from Georgia Kyle Maynard

The next time you find yourself feeling down or sorry for yourself, check this site out...

He was on CNN (Larry King Show). Absolutely amazing!

http://www.kmaynard.com/index.html

answer key MBA 610

As promised: (BTW not sure why formating won't work)


1.c
2.d
3.a
4.b
5. throw out
6.c
7.a
8.c
9. d
10.a
11 e
12.e
13.d
14.b
15.d
16.a
17.c
18.b
19.c
20.a
21.d
22.d
23.e
24.b
25.b
26.a
27.c
28.a
29.e
30.a
31.b
32.c
33.a
34. c
35. c
36.d
37.d
38.c
39.c
40.c
41.a
42.c
43.b
44.e
45.a
46.c
47.c
48.b
49.b
50.d

51.b
52.a
53.c
54.a
55.b
56.c
57.b
58.c
59.c
60.c
61.d
62.b
63.c
64.c
65.d
66.be
67.c
68.e
69.d
70.d

Multiple Choice Answer Key Test 2

As Promised....

Multiple Choice
1.A	26.E	51.B
2.D	27. D	52.A
3.C	28.D	53.C
4.C	29.D	54.A
5.B	30.C	55.B
6.D	31.A	56.C
7.A	32.D	57.B
8.CE	33.C	58.C
9. A	34. B	59.C
10.C	35. A	60.C
11 B	36.D	61.*
12.D	37.D	62.D
13.DFE	38.C	63.C
14.B	39.C	64.B
15.C	40.C	65.E
16.C	41.A	66.A
17.D	42.C	67.B
18.B	43.B	68.C
19.D	44.E	69.A
20.AD	45.A	70.C
21.C	46.C
22.A	47.C
23.C	48.B
24.D	49.B
25.A	50.D

Importance of networking

CollegeJournal | Search Strategies: "Between Thanksgiving and New Year's provides the free time you need to start building a group of supporters and advisers -- your network-- that will help you with your upcoming job hunt "

The Wall Street Journals' College Journal has a good article on the importance of networking.

Some highlights:

"Although networking doesn't come naturally to everyone, it's a skill you'll use for the rest of your career, says Wayne Wallace, director of the University of Florida's career center in Gainesville. "It takes a little bit of work, and that's what differentiates the people who are willing to do it," he says"

"Lance Choy, director of Stanford University's career-development center. Typically, these are relatives, friends or people you know through friends. You will feel less awkward around them, and if you're nervous, they won't mind. Starting with them will help you be more polished for later meetings.
"Students have a sense of dread about networking," says Hoffman. But if you start by talking with people you already know, it'll come more easily, she adds....Choy suggests heading to the career center at your school to gather names of contacts from the alumni database. Most universities have programs connecting students with alumni who are willing to help with career issues. Career counselors can provide contact information."

The full article

CHECK TESTS

I have had a couple of people find math errors on the grading of the test...please please CHECK this!!!! Bring any errors to class and I will make necessary corrections.

The multiple choice answer key will be posted tomorrow.

Also look for an upcoming Finance Club meeting. Probably Friday at 12:30, but I will let you know for sure when I hear.