MBA 610 Class 4 after break Market Efficiency

Market Efficiency introduction

MBA 610 Class 4 Before Break

After a look at current events, we review CAPM, discuss anomalies, leading up to Market Efficiency

Not reading the text before class? Maybe these will help

I realize many of you are very busy and also that you have other demands on your time, but I do want to remind everyone that class is designed to supplement the reading of the text/notes online. It seems like some of you are coming to class not having read the material.

Consequently some of the vocabulary and ideas discussed in class may seem a bit foreign. In that spirit I offer you the following videos. They are not as good as the textbook, but people learn in different ways and maybe this is your way. Additionally some of them (especially the material from Bionic Turtle is flat out excellent) are very good.

Enjoy and have fun with them!

YouTube - savingandinvesting's Channel

And a little more technical lessons from Bionic Turtle.

The stuff from BionicTurtle is HIGHLY recommended. I just spent probably an hour just watching them myself. And while some or the "art" of finance is missing in that you still need to see the big picture etc (whole idea of not just using a model blindly), the material is really good!!

The Extraordinary Classroom Series

Well my one 610 class can't go, but to everyone else, if you are not doing anything, this should be interesting (yes even if it is accounting!). If anyone wants to go and record it for the 610 class can see it let me know. I will give you a flip recorder to use.

The Extraordinary Classroom Series:

"Dr. Carol Fischer and Dr. Joe Coate School of Business; Department of Accounting Earnings Management and Corporate Social Responsibility: An In-Class Exercise to Illustrate the Short Term and Long Term Consequences Wednesday, Feb. 11, 3 p.m., Robert R. Jones Board of Trustees Room, Doyle Hall"

Payoff from the online feedback form

From a student input on the online feedback form:

"Please provide some sample problems/questions we can use to test our knowledge. I realize that may be a little juvenile to request, but in discussing with classmates it would seem that most have that same concern that we may be overestimating our understanding of the material. We do not want graded homework..."

You asked, so here you go:

1. What are some of the assumptions behind CAPM? How well are they met? How might they matter?
2. Be able to state current state of CAPM.
3. Why do we study CAPM given it is probably wrong?
4. What is significance of the Fama-French three factor model?
5. Why are assumptions more important in valuing longer term assets?
6. Graph the long term historical relationship between risk and return of different financial assets?
7. What is Yield to Maturity? How do you calculate it?
   
8. Be able to calculate duration and modified duration.
9. What inputs change the duration of a fixed income asset. How? For instance, two bonds, equal maturity and both selling for par. One is rated AA and one is rated BA. Which probably has a longer duration and why? (hint higher coupon, shorter duration ceteris paribus)
10. What is a perpetuity? Annuity?
11. How does one get from Sensitivity Analysis to Scenario analysis? What is the difference between each?
12. What is the price of a 5 year bond that pays a semiannual coupon payments, 4% coupon bond if market interest rates are 5% and pay value is $1000. Answer: $956
13. What does a tornado diagram do?
14. A callable bond gives the _______ the right to ______ at certain points of time.
15. The main rationale for callable debt is???
    
16. Bond investors would prefer _____ debt. (non callable)
17. The manager-shareholder conflict is often called an ________ problem. (agency cost)
18. Why is capital budgeting and valuation essentially the same thing? (Think of valuation as capital budgeting with zero cost, or both use present value of DCF).
19. What can ratios do? What can they not do? How can ratios be used internally and externally?
20. Give examples of stakeholder conflicts
21. Why are shareholders so important?

Assessment test update

Just to confirm what I said in class on Thursday (Fin 402), you are not allowed cheat sheets for the assessment test.

MBA Class 3 Before Break

A long look at recent articles of class interest, a review of Valuation and then onto portfolio math-

I previously had posted the file from after break twice by mistake. Sorry for any inconvenience.

MBA 610 Class 3 after break

More of the same class. Porftfolio math, CAPM, some of Fama-French three factor model

MBA 610 Class 3- review of valuation w discount rate focus

Class started with a fairly long review of articles and current events tied to class. Then reviewed some student questions and looked at historic returns before going over portfolio math.

Finance and BonaResponds in one video!

YouTube - Finance @ St. Bonaventure University - Director's Cut

SSRN-We Don't Quite Know What We are Talking About When We Talk About Volatility by Daniel Goldstein, Nassim Taleb

Here is the paper we mentioned in SIMM class today

SSRN-We Don't Quite Know What We are Talking About When We Talk About Volatility by Daniel Goldstein, Nassim Taleb:

"Finance professionals, who are regularly exposed to notions of volatility, seem to confuse mean absolute deviation with standard deviation, causing an underestimation of 25% with theoretical Gaussian variables. In some fat tailed markets the underestimation can be up to 90%. The mental substitution of the two measures is consequential for decision making and the perception of market variability."

Michael Milken on activism | Video on TED.com

Michael Milken on activism | Video on TED.com:

I am not sure where to put this one. Milken is mentioned in my classes all the time, but this is not finance. Moreover, while posted only last month, it was filmed 8 years ago. He talks on everything from finance, to charity, to adding value. So I will put it on FinanceClass and the RandomTopics2 blogs. He talks about the difference people can make, which while not strictly a financial topic, it is a lesson that is VERY important. (oh and many of his solutions and language are financial which again shows that no matter what you want to do, having a good financial background will help immensely.)

"Michael Milken talks about using your own particular set of skills to make real change in the world. In his case, the energetic mind that once created exotic bonds is now driving the 'Manhattan Project of cancer' -- with lifesaving results."

The Element and Class ideas

I am reading The Element which is essentially based on the premise that we all learn differently and have different strengths and weaknesses. It has gotten me thinking (which is almost always a bad thing..lol)...what else could be do to make your learning experience better/more fulfilling?

So while I can not alter the syllabus, I have some ideas that could be used as a project for SIMM, used to up a poor case in 402 (or maybe as 20% bonus on the final), and/or a bonus/extra credit in 610.

This is not required and definitely not an exhaustive list. Just a few things that came to mind that sound fun.

• A video presentation (at least 10 minutes) on anything tied to finance. For instance, do a case study but make it a video.
  
• A summary of important finance papers that could be shared online with others not only in class but with anyone anywhere.
• A presentation(?) that could be used locally at maybe the WW II Musuem (?) or on campus showing Wall Street at War? Or Wall Street during the Depression? or ???
• A web-quality presentation on local finance jobs that could be shared with future classes (sort of a what do finance people do locally)
• Other things??
  

If any of this sounds like something you would like to do, let me know.

Technology to the rescue again!

Given the large class size in a few of my classes I understand that you may not have the opportunity to ask everything you would like in class. Coupled with the inefficiencies involved with office hours (for instance you work then, it is snowy) and the fact that many students are afraid to ask questions, we are going to try to improve communication using this form.

If you have questions you can include them. You can also mention anything that I was not clear on. I will check the forms several times a week to see what I can do to make the class more beneficial for you.

And this is much better than weekly quizzes which seemingly is the alternative. :)

FinanceProfessor.com Podcast

FinanceProfessor.com Podcast--
In case you want to listen to the class via a podcast (where you can download each file), this is the link. I will continue to also post the lectures on this (the class) blog.

MBA 610 Class 2 After Break

Nexus of Contracts, Human Nature, Agency costs, BH-SH conflicts, Ethics

MBA 610 Class 2 Spring 2009 before break

This class is a fast review of valuation and leads up to a short introduction of the Nexus of Contracts.

Review topics

Ok, you have spoken....

review topics you asked for include in Finance 402 (in no order)

* Capital Structure after Modigliani and Miller
* Derivatives--what is available, how to use them, hedging vs Speculating
* Free Cash flow estimation
* Equity Valuation
* Yield to Maturity Calculations

So we will hit on these in coming classes. thanks for the input!

Updated websites

FYI

Slight modifications have been made to both the MBA 610 and Finance 402 pages.

Thain's Furniture Will Hold its Value

Close circuit to the 401 students and in particular Kevin: Not sure if you were joking or not, but you seemingly were right, Michael Smith is good I guess....lol..

Thain's Furniture Will Hold its Value:

Bloomberg: The antiques Thain reportedly purchased will probably hold their value over time, said Clinton Howell, a New York dealer in English furniture.

“Michael Smith is a very smart guy and he buys very good things,” said Howell. “It’s very likely that what he bought was worth the money if Merrill Lynch wants to get their money back.”

MBA 610 class 1 Spring 2009

MBA 610 is a upper level graduate class at St. Bonaventure University. This is a fast review of the financial system, the time value of money, and basic bond valuation from the first class of the semester.

Free Money Finance: Seven Tips for a Better Resume

Free Money Finance: Seven Tips for a Better Resume:

"Yahoo lists seven tips for a better resume as follows:

1. Select the best format.
2. Make certain your document is error free.
3. Find a balance between wordiness and lack of detail.
4. Do not use personal pronouns.
5. Use numerical symbols for numbers.
6. Think 'accomplishments' rather than 'job duties.'
7. Keep it positive."

There is more as well as some things that Yahoo does not have. So if you are on the Job Market, definitely click through!

Free Money Finance is one of my favorite personal finance blogs. Definitely worth reading! (I think so highly of it that I get it via both MyYahoo, iGoogle, and my Google reader!)

Apple's Stock (AAPL) Cheap, Cheap, Cheap

A good example for all classes, but even better for SIMM

Apple's Stock (AAPL) Cheap, Cheap, Cheap:

"Apple generated $8.5 billion of free cash flow in fiscal 2008 (through September). Apple's enterprise value at $88 a share is about $56 billion. That's 7X trailing free cash flow."

Insider trading class discussion

from Bnet

"PETE ROSE not betting on the Reds on a particular day certainly told other bettors, bookies, etc. that something was not right with the Reds that day (due to an injury or whatever). That is terrible! His silence was tantamount to insider trading. We all know how many hits Pete had, but I wonder how many "hits" were made by gamblers because of Pete's inside knowledge"

and then my personal favorite from a couple years ago. WOW!

"You have to read this! It has everything any insider trading case could want---from a retired seamstress, to classified ads placed to hire accomplices, to the theft of advance copies of BusinessWeek, to strippers, to Russian baths. (I am not making this up!)"

Finance 401 project

Due to a conflict with the Finance 401 exam, the term paper will be due Dec 3rd.

Jeremy Siegel's Mistake: Why Stocks Are NOT "Dirt Cheap"

Jeremy Siegel's Mistake: Why Stocks Are NOT "Dirt Cheap":

"The 15X average PE for the S&P 500 is what you get when you use professor Shiller's methodology, which averages 10 years of trailing earnings (and, therefore, if profit margins are normal, uses earnings of about 4 years ago). Prof Siegel's earnings estimate, meanwhile, is a forward estimate--one that adds about 5 years of trended growth (6% a year) to the Shiller estimate, but uses the same PE.

We suspect that, if Prof Siegel performed the same 'trended' analysis over the entire 20th Century, the average PE for forward trended earnings would be about 11X-12X, not 15X. This, we expect, would produce a fair value estimate much closer to that of Shiller, Grantham, Smithers, et al."

Given our class discussion on ratios and using multiples to value equities, this one is a must read for all classes! (yes click through to the article)

This will allow me to

This will allow me to update blog by phone in event of class cancellation etc.

SIMM Calendar

Test answers

Sorry for the delay...forgot yesterday..

1) C

2) E

3) D

4) E

5) D

6) C

7) D

8) E

9) E

10) A

11) D

12) C

13) B

14) E

15) A,B,C,D,E

16) E

17) A

18) B

19) B

20) E

21) D

22) B

23) B

24) A

25) D

26) C

27) C

28) D

29) B

30) E

31) D

32) D

33) E

34) D

35) E

36) A

37) B

38) C

39) D

40) E

41) E

42) C

43) E

44) D

45) B

46) E

47) C

48) C

49) B

50) E

51) B

52) D

53) D

54) E

55) D

56) C

57) A

58) C

59) D

60) D

61) C

62) C

63) C

64) C

65) B

66) E

67) D

68) D

69) C

70) C

71) E

72) E

73) C

74) B

75) E

Finance Students Keep Their Job Hopes Alive - NYTimes.com

Finance Students Keep Their Job Hopes Alive - NYTimes.com:

"Financial companies shed 150,000 jobs last year and more than 100,000 so far this year, according to Challenger, Gray & Christmas, a national job placement company. Yet amid the downturn, applications to graduate business schools rose this year, as they have in other periods of uncertainty."

Anxious time for finance majors

Anxious time for finance majors:

"CLEVELAND -- With the meltdown on Wall Street, many finance majors are worried about whether they can find jobs when they graduate.

'I have at least one more year of college, so I hope it will get better, hopefully,' says Seth Woolfe, a CSU finance junior.

It may be harder to find internships for college students, especially paid internships.

'Before you might have had three job offers when you graduated, now you may have to settle for a satisfactory job, not your dream job,' says Alan Reichert, a CSU Finance Professor.

Finance is the second most popular major in the College of Business at CSU. There are about 300 finance majors."

Markets crimp plans of would-be investment bankers - The Boston Globe

Markets crimp plans of would-be investment bankers - The Boston Globe:

"There are still opportunities in finance,' said Bakewell, who ended up taking the summer spot under JPMorgan Chase. 'You can't just change your whole career path. I can't imagine trying to do a complete 180 just based on recent events.'

There were a few more jangled nerves in the immediate aftermath of the September turmoil that toppled the remaining independent investment banks. Faculty and administrators at numerous business schools describe their second-year MBA students in particular as stunned or even panicked initially.

Students are starting to accept the new reality, school officials say, although many are reviewing their options and looking at smaller firms in different areas or even at different fields."

IBM

I have had several past students mention (ok, so two) that this is a good opportunity...be sure to check it out...from notice board:

Interested in working for IBM?

If so, plan to attend the IBM information session presented by Kathleen Colucci, SBU alumna and IBM vice-president, finance.

When: Thursday, Oct. 2 from 4 – 5 p.m.
Where: Reilly Center, Rm. 219

IBM has full-time corporate financial planning opportunities for candidates earning degrees in finance, accounting, or business.

Connie Whitcomb

Some valuation resources

In finance 401 we are doing valuation and I have mentioned SIMM several times. Here are some resources you might find useful in your valuations. Students in Money Management Resources

Fin401mainpage

Projecting Cash flows--the spreadsheet will be modified but here it is to start"

Sorry, I changed the file online but forgot to tell people...

here is the 401 projected financials:
http://www.financeprofessor.com/fin301/projectedfinancials.xls

Colleges spending more time teaching financial literacy | Dallas Morning News | News for Dallas, Texas | Pamela Yip | Personal Finance | Business Colu

The Finance Club is talking about doing this. Any interest?

Colleges spending more time teaching financial literacy | Dallas Morning News | News for Dallas, Texas | Pamela Yip | Personal Finance | Business Columnist | Dallas Morning News:

"'One of the things that we have found is that the population has very little background in basic economics and personal finance,' said Steven L. Cobb, center director and chairman of the economics department. 'The earlier that we start teaching economics, the earlier students begin to understand these concepts and the better the chance that they will be good consumers.'

Other schools are also active in offering personal finance courses."

Free Money Finance: A Better Way to Get the Salary You Want

Deciding whether or not to mention salary requirements is always a question interviewers have, so this advice from FreeMoney Finance is well worth reading!

Some good advice from Free Money Finance: A Better Way to Get the Salary You Want:

"I think this advice is not realistic. If an interviewer asks you point blank what your salary requirements are, you may be able to dodge him once or twice with a smooth, non-committal answer. But if he presses you (which I would do), you're either going to have to tell him or look uncooperative/obstinate -- which obviously doesn't put your best foot forward during the interview process.

So here's an alternative that I like from Yahoo -- price yourself like a house"

Read more about this...BEFORE you interview!

On and Off-Campus Recruiting

On and Off-Campus Recruiting:

"Register with The Career Center by opening a free, SBU College Central Network account and post a current résumé to it. The site is located at: www.collegecentral.com/sbu. For information on how to navigate College Central Network, click HERE.

** Attend an 'On-Campus Recruiting Orientation' in order to be eligible, if selected, to participate in an interview. You must attend an orientation before you sign up for an interview. Previous recruiting-orientation participants do not need to attend again. Please check with the Career Center to determine your eligibility."

MANY finance jobs are filled in the Fall....so now is the time to begin....Feel free to show me your resume as well. Far from an expert, but I will mark it up for you.

Meetings...

12:30 Friday BonaResponds leader meeting...looks great on a resume! and you know it is the right thing to do. Become a leader!

and then we can walk over to

1:00 Friday Finance club meeting:

There will be a Finance Club meeting this Friday at 1pm in the SIMM room, located in the basement of the R.C. Topics discussed, among other things, will be the annual New York City Trip and the Alumni Golf Tournament. The meeting is open to all students regardless of year or major. If you are unable to attend the meeting and would like information on the club or events please e-mail Mark Larry at larrymj@sbu.edu .

The Park Library - Bloomberg Terminal Guide

The Park Library - Bloomberg Terminal Guide-
Another Bloomberg certification site.

bloomberg+certification - Fast Answer Search - Baker Library | Bloomberg Center

bloomberg+certification - Fast Answer Search - Baker Library | Bloomberg Center:

"Why complete certification? Gain comprehensive knowledge of Bloomberg Professional service, optimize job performance, and differentiate yourself from peers."

College Job Market

From Business Week College Job Market:

"We talk to nervous college seniors who are about to enter the job force in a very uncertain economic environment. We'll provide advice on how to land that first job"

The Last-Minute Résumé Filler

The Last-Minute Résumé Filler:

"Nonprofits can't always afford to pay for an intern but are frequently looking for extra help. Volunteering over the summer, even for just 10 or 15 hours a week, can provide a résumé-worthy experience, says Diane Crist, director of the career development center at the University of St. Thomas' Opus College of Business in St. Paul, Minn. The experience may also allow the student to demonstrate some initiative and organizational savvy, qualities that will appeal to future employers, Crist notes."

Who Killed Montana Power?, Steve Kroft: Ex-Shareholders Feel Misled - CBS News

From class:

Who Killed Montana Power?, Steve Kroft: Ex-Shareholders Feel Misled - CBS News:

"Its demise may not be the biggest scandal of our time, but to its stockholders, it shows how greed and outright stupidity destroyed one of the oldest and proudest companies in America. Correspondent Steve Kroft reports."

Answer Key for MBA 610 Test 1--Hilbert version

I have zero idea what happened with the key, but it was so far off it was as if different test. So it will be regraded, but here is the key.

1. e
2. c
3. a
   
4. c
   
5. d
6. b
7. e
8. c
9. a
10. 10.b
11. d
12. e
13. d
14. d
15. c
16. a
17. b
    
18. e
19. c
20. 20. b
21. b
22. d
23. THROWN OUT
24. e
25. b
26. d
27. d
28. c
29. e
30. 30. e
31. d
32. a
33. a or b
34. c
35. d
36. c
37. e
38. c
39. e
40. 40. e
41. c
42. d
43. a
44. d
    
45. c
46. c
47. THROW OUT
48. d
49. a
50. 50. a
51. b
52. a
53. d
54. c
55. a
56. e
57. b
58. e
59. b
60. 60. d
61. c
62. a
63. b
64. c
65. c
66. c
67. a
68. throw out
69. c,e
70. 70. c
71. e
72. c
73. D or E
74. e
75. c
76. d
77. d
78. c
79. c
80. 80. b
81. c
82. c
83. b
84. c
85. c
86. c
87. b
88. e
89. b
90. 90. a
91. d
92. b
93. b
94. d
95. e
96. a
97. d
98. c
99. b
100. THROW OUT
     

The result of this is that the average went up by about 20 points out of the 300.

MBA 610 Hilbert tests

There was a problem with the key. Just looked over the report and not sure what happened, but am going over the test instead of using the key provided...Seems like the errors were all concentrated in questions that came from the text's test bank.

Will update as soon as possible.

402 cases for 4/21 and 4/23

4/21 Genzyme/Gel Tex (read Introduction to Debt policy and value)
4/23 Jet Blue IPO valuation (Read Structuring Corporate Finance

Looking for a job?

From Career Services:

Dresser Rand – Financial Management Acceleration Program (FMAP)
Majors – Accounting, Finance (must have 21 hours of accounting courses)
Degrees – Bachelors, Masters (May or December 2008)
GPA – minimum 3.0
Resumes due by Noon, April 18, to the Career Center

Additional information is available in your SBU College Central account (www.collegecentral.com/sbu). Please contact the Career Center, room 216 RC, if you have any questions.

History lesson

For much of the second part of 1968 and some of 1969 the NYSE changed its operations as part of a "Paperwork Crisis." Specifically, for the second part of 1968 the market closed on Wednesdays and for much of 1969 the market was closed early in order to get caught up on paper work.

You can read more about this from the NYSE itself.

The reason I am telling you this, is that I am going to declare my own paperwork crisis and give Finance 402 a reprieve on Wed. We will have class, but no case will be presented. You will still be responsible for readings and for coming.

We will be having a regular class.

finance cases

http://www.erisk.com/Learning/CaseStudies.asp

Student investment funds

Michael Price Student Investment Fund: "The Michael Price Student Investment Fund (MPSIF) is a family of funds managed directly by NYU Stern MBA students. The fund, part of the overall NYU endowment, was established in 1999 through a generous gift from Michael Price, managing partner, MFP Investors, LLC and former chairman of Franklin Mutual Series funds."

University of Maryland: Mary Lund Davis endowed Pacific Lutheran University the sum of $25,000 for the establishment of The Business School Student Investment Fund, now named the Mary Lund Davis Student Investment Fund (SIF). The primary purpose of this endowment is to provide a learning experience for students in investment portfolio management.

Texas: The student portfolio managers are selected through an application and interview process each November. Once selected, the new student managers begin training with the graduating student managers, and take over the Fund portfolio in March. The managers are responsible for virtually all activity with the Fund's portfolio, including company research, economic forecasting, risk management, pitching stock and bond ideas, working with the Fund's brokers to execute trades, and producing written reports and verbal presentations to the Fund's Advisory Committee.

Wednesday Career Fest

Heard from a past student today that he is definitely coming and looking to hire, so you are crazy not to go!
From the Career Center:

The Career Center will be hosting it’s annual, on-campus career fair, CareerFest ’08, this Wednesday, March 26. It will take place in Doyle Dining & Trustees’ rooms from noon to 2 p.m. and is open to students of ALL CLASS LEVELS and ALL MAJORS!

Students may stop in anytime and will be eligible to win prizes. Please encourage your students to attend!

Finance students, those just beginning their career as well as those with some experience, would benefit in many ways by attending and speaking with employer representatives.

While we highly recommend professional attire (business suit/business casual), we realize some students may not be able to “dress up” and they are also welcome. Representatives will be sharing information about career fields in general, internships, graduate schools, volunteer and part/full-time career opportunities. Currently, the following employers are looking for finance or related majors.

Corning Inc.
Lockheed Martin
Robert Half International (AccounTemps)
Manning & Napier
AXA Advisors
Pioneer Credit Recovery
JP Turner & Co./Clark Capital Partners
Prudential Financial

Additional information about the event, including a list of employer participants, is available online at http://www.sbu.edu/academic_resources.aspx?id=2926. Please feel free to contact me with any questions and THANK YOU for encouraging your students’ participation in this major event!

Finance 402 Cases

Cases:


3/10 Monday: Ben and Jerry
3/12 Wednesday: Fed Ex vs UPS

3/17 Krispy Kreme (Read the Financial Detective)
3/19 Padgett Paper (Kota Fibres not presented but is testable)

3/24 Server Vault &Best Practices-Not presented but it is testable--do we have class?
3/26 Nike (Coke vs. Pepsi not presented but it is testable)

3/31 Coke and Pepsi (read Boeing)
4/2 Compass Records (read Investment Detective)

4/7 Genzyme/Gel Tex (read Introduction to Debt policy and value)
4/9 Jet Blue IPO valuation (Read Structuring Corporate Finance policy)


Others will be announced ASAP

all are testable (so "read" or presentations)

Cheat Sheet for 610 test

The test will be largelt Multiple choice (given size of class really do not have much of an alternative). You are allowed a single page (front only) 8.5 by 11 cheat sheet. You can write as small as you want.

Free Pizza! Ok, so there are better reasons to go!

A gotta go!!

All students are invited to attend a lunchtime panel presentation of five, recent alums who will share job-seeking advice and provide helpful tips about career decision making. Topics to be discussed include networking successfully, getting the job you want, and standing out in a competitive job market. The program is co-sponsored by The Career Center and Alumni Services.

Advice & a Slice – Backpack to Blackberry

Monday, February 18
12:30 – 1:25 p.m.
Hall of Fame Room, Reilly Center
Pizza and soda will be provided.

Advance registration with the Career Center, room 216 RC, is requested. Please sign up by Friday, February 15. All pre-registered students will be eligible to win a Bluetooth courtesy of Verizon Wireless! You must be present at the event to win.

Thank you,
Renée

Renée Caya-Bizzaro, Assistant Director, The Career Center

From Career Services

Please share the following information with your students…

In order to be eligible to participate in on-campus recruiting, students must attend an on-campus recruiting orientation before interviewing. The following orientations are being offered this semester for students who have not yet attended one and are interested in participating in on-campus interviewing. Orientations take place in the Career Center, room 216 RC.

12:30 - 1:20 p.m. -- February 1 & 6
3:00 - 3:50 p.m. -- February 5

3:30 - 4:20 p.m. -- February 6

Please contact the Career Center if you have questions or need additional information.

Thank you,
Renée

Renée Caya-Bizzaro, Assistant Director, The Career Cente

Looking for a part time job??

Ok, so I really need help. (yeah probably "that kind" of help too, but....)

Was approved for funding through school of business for some hours, plus a bigger project which will also be funded (not sure how yet, but it will be):

The job entails:

* recording homeworks etc (EXCEL)
* research (online and in library--soon on Bloomberg machine as well)
* cleaning office
* helping with Websites (FinanceProfessor and probably BonaResponds.org as well)
* dealing with administration (getting purchase orders etc).


probably 10-15 hours a week. MAINLY flexible hours. Occasionally will have to be at office when I am around so maybe 1-3 hours a week of set times.

let me know if interested. Would look good on a resume!!


Definitely do not need to be a finance major, but that can't hurt.

Cool job opening!!

ACCOUNT EXECUTIVE

John G. Ullman and Associates, Inc., a comprehensive financial management services firm based in the Southern Tier New York seeks to employ a qualified individual for the positions of Account Executive or Associate Account Executive.

Overview of John G. Ullman & Associates, Inc.

The hiring firm is an independent comprehensive financial management services business headquartered in Corning New York with branch offices in Rhinebeck and Rochester New York. It was founded in 1978, by its CEO and president and has enjoyed 29 years of continuous growth. The firm, which is fee-based, serves over nine hundred and twenty clients and has in excess of $635 million of assets under management. It subscribes, without exception, to the highest ethical standards and to complete confidentiality on behalf of its clients. A highly professional staff includes specialists in virtually every area impacting the management of personal finances. The firm provides unbiased customer service with no conflicts of interest. Services, include but are not limited to, tax management, retirement planning, insurance planning, education planning, executive compensation planning, and estate planning in addition to individualized portfolio management.

Position Description and Concept

The position of Account Executive is primarily founded on the following functions:

Ø Counsel clients and administer the firm’s comprehensive financial management services on an ongoing basis, upholding all professional standards.

Ø Identify and develop new business prospects including individuals, families and non-profit organizations.

Ø Develop and maintain expertise in areas of financial management practice.

Ø Serve as the family financial manager, developing long-term relationships.

The training process will include close interaction with experienced, Senior Account Executives and formal training plan for associate level positions. External training will include coursework and successful completion of the Certified Financial Planner^® designation (if candidate does not already possess CFP^® designation).

Candidate Qualifications

Prospective candidates with the following qualifications will be considered for this position:

Ø Mature individual with excellent interpersonal and communication skills

Ø Four-year college degree required. Graduate or advanced degree preferred

Ø Proven record of personal, academic, and employment-related accomplishments

Ø A minimum of 3-5 years of applicable professional experience.

Ø Self-starter, capable and comfortable working independently with high levels of intensity and motivation.

Ø Hard working and loyal with a strong by-in to servicing clients. This is not a sales position, but outstanding customer service will result in new client referrals.

Successful Account Executives within the firm have backgrounds in banking, law, insurance, education, marketing and investment analysis. This may be an appealing position to an individual wishing to make a mid-career change.

Compensation

Compensation will be commensurate with experience and includes salary, incentive bonus structure, as well as an extremely competitive benefit package. The position provides an excellent opportunity for substantial income growth.

For More Information

Contact Carol Wittmeyer, president of the Meliora Group:

Carol@melioragroup.com; 716.474.6833

Apply online at www.melioragroup.com

To learn more about John G. Ullman & Associates visit www.jgua.com

From Career services

Another one you do not want to miss!

Interested students must submit a hardcopy resume to the Career Center, room 216 RC, by or before the resume-due date listed below for this opportunity. Details about the posting are available in your SBU College Central account (www.collegecentral.com/sbu).

DEUTSCHE BANK SECURITIES – Corporate Finance Analyst Internship (New York, NY) – ALL majors (graduate and undergraduate)
Resumes due: Monday, January 28
*GPA must be listed on resume – 3.25 minimum; must be graduating May 2009 to be eligible.

Additional information about the employer is available online at www.db.com.

Thank you,
Renée

Renée Caya-Bizzaro, Assistant Director, The Career Center

Room 216 Reilly Center, P.O. Box 119

St. Bonaventure University, St. Bonav

Looking for a job? Internship?

From Career Services:

Please share this information with your students…

The Career Center is accepting résumés for the following opportunities. Details about these postings are available in your SBU College Central account (www.collegecentral.com/sbu). Please contact the Career Center, room 216 RC, if you have questions or need additional information.

BEAR STEARNS – Controllers Summer Intern (New York, NY) – Accounting, Finance majors
Resumes due: Thursday, January 24
Additional information about the employer is available online at www.bearstearns.com.

DOPKINS – Summer Intern (Buffalo, NY) – Accounting majors
Resumes due: Tuesday, January 29
Additional information about the employer is available online at www.dopkins.com.

IBM INTEGRATED OPERATIONS – Only for those who have not previously applied!
*Pre-Professional Accountant Intern (IBM Job # B041200), NY, CT – Accounting majors
*Accountant (IBM Job# B038324), NY, CT, NC -- Accounting majors
*Financial Analyst (IBM Job# B038924), NY, GA, MA – Finance, Accounting majors
Resumes due: Wednesday, January 30
*An online application is also required for each position by Jan. 30 (go to www.ibm.com/careers and indicate the IBM Job #). Additional information about the employer is available online at www.ibm.com

New class room for Finance 402

Effective immediately we will be meeting in Plassman 100 for Finance 402

Comments on MBA 610 Final

Hi Everyone...

Kevin B. will be giving the exam to you...

My thoughts are that since I will not be there, we will make a comments:.

First, as always, there is no collaboration. Cheating will result in an F for the class (and an A for the person who turns the cheater in if it is proven).

That said, I had said you were allowed a single page (front and back) for a "cheat sheet", but I think I will change that.

You can have as much as you want (so open book). However, no internet and no computers.

I will tell Kevin.

However, before you think "oh this will be easy", most of the advantage will be eliminated by time. You will have 2:45. (I am supposing it will take a few minutes to pass out the exams and Kevin said he would be a few minutes late.) I learned my lesson when I was a student and a teacher screwed up and gave us too much time and an open book test. So it is open book, but the test will be long. DO NOT WASTE TIME. You can look things up, but doing so will cost time. I am aiming to make it long enough to do without looking things up.

Do not go past 9:00.

There are 100 Multiple choice questions (although not equally weighted. The higher weighted ones are later in the test), plus 6 short answers (10 points each).

There may be an essay too. Not sure. I will decide in the morning once I get a better look at it all together.


Relax. Just show me what you know. You won't get 100% (well unless you turn someone in for cheating), but who cares? You are all doing pretty well and unless you truly blow it (or cheat), you will probably make it (since I have no idea on cases yet I can not say definitely you will all pass, but right now you are all passing.)


Good luck! See you all Saturday :)

jim

Finance 401 test info

The final for 401 will be held in Murphy Aud C at 1:10 on Tues and then again on 1:10 on Wednesday.

You are allowed a full page front and back as a cheat sheet.

Finals are when scheduled

Just a reminder, all of our finals are when they are scheduled by the University. I received the following today:

" This is a reminder that final examinations are to be scheduled during the regular examination period at the end of the semester except when the instructor’s written request to dispense with one is approved by the appropriate dean. Please adhere to the regular examination schedule.

John G. Watson"

401 Answer key for test 2

Multiple Choice 2 points each (60 questions=120 points)
1. E
2. B
3. C
4. C
5. C
6. A.
7. C
8. B
9.E
10. d
11. D
12. C
13. B
14. C
15. C
16. C
17. B
18. B
19. E
20. D
21. A
22. E
23. THROW OUT (on key fill in all bubbles)
24. A
25. D
26. C
27. D
28. A
29. B
30. A
31. A
32. C
33. B
34. A
35. C
36. D
37. C
38. E
39. D
40. C
41. C
42. C
43. D/E
44. C
45.C
46. C
47. D
48. C
49. D
50. D
51. B
52. E
53.D
54. E
55. B
56. B
57. D
58. C
59. A
60. D

I lost the key

Ok, first let me apologize. I lost the answer key for the 401 test. Have no idea. Have looked through office both at home and in school. No luck. So there is a chance (I would estimate it at 50:50) you will have to wait until Thursday to get test back. I will give the qualitative part back tomorrow.

MBA 610 cases

Some information for the cases (which will be presented the last day of classes)

There will be 6 groups of 4 (well actually 5 of 4, one of 3)

each group will turn in a paper (4-5 pages max) plus any numerical analysis.

you will have 30 minutes for a presentation....so plan on 20 min presentation, 10 minutes for Q&A. I am leaving it up to you, but generally you will want to take one side or the other. For instance, in Adelphia case, you probably would want to take side of either the creditors or the management.

The cases will be largely on a first come first serve basis (as in we will not have repeats)

Everyone has to contribute (and present)..

It is expected that everyone (even those not in the group presenting reads every case). Also the cases provided here are the starting point, it is expected that you will have to supplement the material somewhat from other sources.

cases to choose from:

1. Bankers Trust
2. Bear Stearns _still playing out
3. Fischer-Price (Mattel)-still playing out
4. US Savings and Loan crisis
5. Barings
6. Dalian Water Supply---a spreadsheet is available here for the case
7. Long Term Capital Management--if this one is chosen, there will be a longer discussion period.
8. E-Trade (still playing out)
9. Adelphia (have to admit I am getting sick of it, but if you really want it...)
10. Any other case with my approval.

MBA 610 homework

I will not collect this (provided it is done, I may look at it and grade on completeness only)...

Here is spreadsheet to start with.

Semantic networks

We talked of semantic (or associative) networks in class today (you probably do not want to know ;)). But we mentioned the old Chevy "Baseball Hot dogs, Apple Pie and Chevrolet" commercial. Well, lo and behold, the had redone the classic commercial.

Finance 401 test

Hi everyone,

A couple of questions have arisen on the test, so here goes.

1. Yes I had uploaded the wrong file after updating the website. Here is correct link for class page.
2. The test is in Murphy Aud at 6:30pm on Thursday
3. It is cumulative, but obviously more on new stuff.
4. Main Chapters from book: 9, 13
5. (but to understand 9 you have to know others...such as 7 and 8....and probably 5 and 6 too...(but they were on first test too)...
6. Other material: stuff on portfolio diversification, background on CAPM, current state of CAPM, Behavorial finance
7. If I were to guess I would say about 10% of the test will be from blog, 60% from class, and 30% primarily from text.
8. Yes the movie (Other People's Money) will be tested.
   

IBM Reminder

I was asked to announce this again:
nformation Session
IBM Integrated Operations
Thursday, November 15
5 - 6 p.m.
Room 211/213 RC

During this session, insightful information about the potential for careers with IBM involving accounting and finance will be shared by alum Kathy Colucci, Vice President of Finance at IBM. Students of all majors are welcome to attend. Business casual dress is recommended for those seeking full-time or internship opportunities.

Thank you very much,

Renée

Also Matt G. who now works at IBM asked me to tell you that it really is a good job!

Definitely worth going! It will be done before the exam.

Big Blue is coming!

Does anyone still call them Big Blue? Well anyways, IBM is coming...

"INFORMATION SESSION

IBM Integrated Operations

Thursday, November 15

5:00 - 6:00 p.m.

Room 211/213 RC

During this session, insightful information about the potential for careers with IBM involving accounting and finance will be shared by alum Kathy Colucci, Vice President of Finance at IBM. Students of all majors are welcome to attend. Business casual dress is recommended for those seeking full-time or internship opportunities. Please contact the Career Center for additional information, if needed."

Part time in Olean

File Clerk -- Accounting Dept.

Part-time: Approx. 10 hrs./wk.

Relevant Majors: Business

Application Process: Submit résumé via email directly to the company representative -- Susan Blazejewski, HR Manager, sblazejewski@dresser-rand.com, no later than Monday, Nov. 12!

A complete description of the opportunity is available in your SBU College Central account (www.collegecentral.com/sbu) listed as (Job ID #) 1291206. Please contact the Career Center, if you have questions.

Tony Annunziato to speak in class

Three years ago this week my classes had the distinct pleasure of having Anthony Annunziato speak in my classes. Here are some of his comments from that day.

He is on campus again today (Tuesday) and will be speaking in at least some of my classes (1:00 in Murphy 107) and MAYBE 2:30 depending on his schedule.

This opportunity just became available to us over the weekend so I apologize for the short notice.

Thursday's Class

I have to be in Buffalo in the morning for a doctor's appt (not for me). I SHOULD be back in time for the 1:00 class, if not, please stay a few minutes longer than normal. I WILL be there! We will be going over chapter 13 on Market efficiency.

Steven Levitt is coming to Buffalo

How many students would be interested in going up to see him? He is speaking at UB on Wed at 8pm. Tickets are $14. We can check into getting a van if there is interest.

Brief Bio: Steven Levitt - Wikipedia, the free encyclopedia: "He is one of the most well known economists amongst laymen, having co-authored the best-selling book Freakonomics (2005). Levitt was chosen as one of Time Magazine's '100 People Who Shape Our World' in 2006.[1]"

Here is more from Time.

AXA interviews

Resumes Due: Friday, Nov. 2

Employer: AXA Advisors

Position: Financial Services Rep.

Majors: All majors

Additional information is available in your SBU College Central account. Please contact the Career Center, if you have any questions.

Student investors exceed beyond buy low, sell high - Features

Student investors exceed beyond buy low, sell high - Features:

"Bridget Hurley, portfolio manager of the class and club, said the group began
in 2002 with $40,000 in donations which has grown into nearly $48,000. In
addition, the group manages $100,000 of the university's endowment. 'For the
university to let us invest their money the way we do ours shows how successful
we've been in the past,' she said. 'We've had annual positive returns.'"

Cross listed on BonaSimm and FinanceClass blogs

Google Docs - Answer key finance 401 test 1

Google Docs - Answer key finance 401 test 1: Ok, so you are supposed to be able to publish via Google Documents...but it did not work very well. Just click on the link and it does work.

Finance 401 test results

First a story...

In one of the first classes I ever taught there was a student who performed very poorly on the first test of the semester. He was the lowest in the class by quite a bit, a real outlier.

He was an athlete and I had to tell his coach. It was not fun.

But the student stopped me and assured me it was just a bad test and he would figure it out and show a big improvement.

Well he did. Reading the book, going over the notes, etc. and by the next test he scored above average. Continuing this progression he had one of the higher grades by the final and ended with an A- for the class. So it can be done! Do not lose hope after one exam. It means very little. It can serve as a wake up call but that is about it.



The breakdown:
Raw Percentage of
score 250 200

mean	141.4681	0.565	0.707
median	143	0.572	0.715
stdev	26.1541
max	199	0.796	0.995
min	87	0.348	0.435

I will post the key later today

Free Money Finance: Get a Job by Volunteering

Free Money Finance: Get a Job by Volunteering:

"One of the tried and true principles of getting a new job is to network with others. I hear this tip all the time. A subset of this suggestion is to volunteer your time and experience for a non-profit/charity event. This way, you'll be able to help out a needy cause and at the same time expose your (great) skills to a ton of new people -- one of which may want to give you a new job.....So if you're in the market for a new job (or even if you aren't), let me suggest that you look for an opportunity to volunteer and showcase your talents."

Free Money Finance: Index Investing Out-Performs Most Actively Managed Funds, Costs Taxes are Why

Free Money Finance: Index Investing Out-Performs Most Actively Managed Funds, Costs Taxes are Why:

"Here's a piece a reader pointed to that details many of the benefits of index investing from the NY Times. I'll highlight a couple of their main points including how indexing out-performs most actively managed funds on a regular basis: This year through September, only 28.5 percent of actively managed large-capitalization funds — which try to beat the market through stock selection — were able to outpace the S.& P. 500 index of large-cap stocks, according to a new study by S.& P. In the third quarter alone, it was even worse, with only one in five actively managed large-capitalization funds beating the index. Over the five years through the end of the third quarter — a span that included both bull and bear markets — only 29.1 percent of large-cap funds managed to beat the S.& P. 500. What’s more, only 16.4 percent of mid-cap funds beat the S.& P. 400 index of mid-cap stocks, and 19.5 percent of small-cap funds outpaced the S.& P. 600 index of small-company shares. “The long term does seem to favor the indexes,"

We will be using this in all classes before the year is out, for right now it might be of most interest to SIMM.

The results are in..

Wow was that close...

22 to 21!

And the winner is...

October 11th...

The SIMM test will be October 18th.

Anyone looking for a job?

Help Wanted:

Work in finance without leaving SBU!

Flexible hours (work mainly on computer from wherever-research, editing website etc.) but some face time (shredding papers, cleaning office, copies from library).

Probably about 10 hours a week.

Looks good on resume, flexible hours. Oh and a great boss!!

While ideally I hire someone NOT in my class (so they can correct tests etc), I have to confess I am pretty desperate so I may end up hiring someone from class.

Bonds

Week 4 Tues

Accounting and Finance, Ratios

The Living Yield Curve (One Bond Strategy) | SmartMoney.com

The Living Yield Curve (One Bond Strategy) | SmartMoney.com:

"A normal yield curve, therefore, slopes gently upward as maturities lengthen and yields rise. From time to time, however, the curve twists itself into a few recognizable shapes, each of which signals a crucial, but different, turning point in the economy. When those shapes appear, it's often time to alter your assumptions about economic growth. To help you learn to predict economic activity by using the yield curve, we've isolated four of these shapes — normal, steep, inverted and flat (or humped) — so that we can demonstrate what each shape says about economic growth and stock market performance"

Types Of Bonds

Types Of Bonds:

"Bonds have many characteristics such as the way they pay their interest, the market they are issued in, the currency they are payable in, protective features and their legal status. Bond issuers may be governments, corporations, special purpose trusts or even non-profit organizations. Usually it is the type of issuer or the particular nature of a bond that sets it apart in its own category

We will be discussing the valuation of stocks and bonds in class. Figured you might like another view (instead of just the class discussion).

Interviewing for Finance and Accounting

Getting a job is too frequently overlooked at SBU. Maybe less so for accountants who seem to "get it" when it comes to job searches, but many other majors (and alas I must confess finance often falls into this category), seem to think the job will come to them.

I am not sure why that is (distance, the Bona Bubble, other?). It seems WAY too many put off search until spring or even AFTER graduation. Which is WAY too late. Start now.

"Interviewing for Accounting & Finance Majors - A Demonstration & Discussion

Wednesday, September 19
4 - 5:15 p.m.
Room 211/213 Reilly Center

All students are invited to attend this program which will simulate a typical interview experience. Find out what to expect in an interview by watching an employer/student role-play of the situation. Ask questions and get advice from alum (Andy Neyman, Ernst & Young) who's a professional in the field. Please sign up in advance with the Career Center, if you plan to attend this program.

Please contact the Career Center, room 216 RC, x2384, if you have any questions.

Rene e Caya-Bizzaro, Assistant Director, The Career Center"

20 Essentials for Achieving Financial Literacy - TheStreet.com University -

20 Essentials for Achieving Financial Literacy - TheStreet.com University:

"There is a tendency to select courses on the basis of the ease of the curriculum or grade-friendliness of the instructor. As a student, this type of strategy tends to benefit you in the short term, but later in life you will regret not having taken certain courses with more valuable, practical content."

His list includes Economics, math, and even finance!

Tues of week 3

Predominantly TVM

Thursday of week 3

Thursday of week 3--covered future values, problems with relying on historical returns, importance of expenses in Mutual funds.

Note this is out of order. Somehow forgot to upload Tues of week 3.

Thursday of the second week of class

The first part of this (75 minutes) is class, the last part is that I left the recorder on by mistake, but had not realized it until I uploaded it. Sorry...

Finance 401 Advance Corp Finance class 1

A look at the Financial System, Nexus of Contracts, and REMM model of Human Behavior

BonaSIMM

Just an FYI...if you want to follow the goings on in SIMM, here is your chance! a new Blog.

BonaSIMM: "Blog will be for Students in Money Management at St. Bonaventure University. We will use it to keep up to date on changes in our portfolio as well as to communicate with various stakeholders (donors, investors, as well as each other). The students in the class will be writing [much of] the material."

'Different World' Video - Bucky Covington - AOL Music

'Different World' Video - Bucky Covington - AOL Music: "'Different World' Video | Bucky Covington"

We will be talking about expected future returns and that has to bring up survivorship bias problems. Think about how this song is a great example of the survivorship bias. (Or if you have read Black Swan, you can also think of Casanova.)

Two emails from a past student

I won't say who (unless I get permission), but I got two emails from a former student today...

in first email:

"I wanted to drop you a note to say hello and share with you that your class has helped me tremendously at my job. I randomly have memories of your class lectures pop into my head....from Ratios to Backdating Stock Options (weird huh). Also, being able to speak in meetings and discuss the Nexus of Contracts to summarize the 'entire picture' has earned me brownie points.

Hope all is well."

I then thanked him/her and asked what exactly work involved etc. The reply contained the following:

"I work for [large investment bank who I will delete] doing Corp. Fin. Started in Jan. in Core Deposits Finance....but through successful networking got on their Finance Mergers & Acquisition team...so now I am working on the LaSalle Bank merger in Chicago.

It's a pretty sweet gig because they got me a corporate apartment in downtown Chicago, let me fly anywhere I want on the weekends (within reason..), and I still have my apt in Charlotte.

It's interesting how in school I heard people say "We don't need to know this stuff now, because we'll be trained on the job".... well that is completely false... You should share it with your kids.

The competition is so intense in the workplace (from my observation) that there really isn't formal on the job training. You're given some guidance, but it's up to you to understand how things work. That is why I find myself going back to your website and re-reading Nexus of contracts and other notes (NPV, Cap Budgeting etc)...starting at the very high level to see the entire picture...not just the task that is asked of me. Now I see more and more of how you emphasized it every single day...

Financial Rounds: Advice For New College Freshmen

Financial Rounds: Advice For New College Freshmen

Freshmen or grad student, much good advice from the Unknown Professor and Ben Stein.

Chapter 12 readings for 401

It was pointed out to me that I failed to mention what parts of chapter 12 you are to read. So for now, let's just read section 12.3. It is on some examples of agency cost problems.

Finance 401 Advance Corp Finance class 1

A look at the Financial System, Nexus of Contracts, and REMM model of Human Behavior