I noted an error in your explanation of "book value" using the SWAP function: Given Data: A machine costs $100,000 has a salvage value of $25,000 and a life of 5 years. Depreciation for year one using the straight-line method: Depreciation per year = (Cost - Salvage value) / Useful life = ($100,000 - $25,000) / 5 years = $15,000 per year Therefore, the depreciation for year one is $15,000. To calculate the end of year one book value: Book value at end of year one = Original cost - Accumulated depreciation = $100,000 - $15,000 = $85,000 So, the end of year one "book value" is $85,000. The value you're referring to, which is the book value minus the salvage value, is commonly known as the depreciable amount or depreciable basis. In this case: Book value: $85,000 Salvage value: $25,000 Depreciable amount: $85,000 - $25,000 = $60,000 This depreciable amount represents the total cost that will be allocated as depreciation expense over the asset's useful life, and that is what appears when you use the SWAP button.
@aquetongmediaКүн бұрын
would be interesting to see this done in lamda
@irishchocolate3872Күн бұрын
In the first example on my HP, I am getting -104.24. Not -161.05. And I don’t know how to correct it.
@aron29712 күн бұрын
isnt it should be the sqrt of the month with number of negative returns
@pawerybacki983 күн бұрын
This is very helpful; thank you very much!
@antsos4 күн бұрын
Hi Ronald, Great video, thanks. For the cell j16 that is just the covariance between amazon and google right? Then you just repeat that formula for the rest of the cells except the diagonal ones in the matrix?
@martinfaherty77365 күн бұрын
Very useful simulation and clear presentation using Excel
@argonaut1199 күн бұрын
Very nice video on this topic. Do you make your spreadsheet available for download? Is it downloadable from your web site? Is there a paid version or free lightweight version of this sheet? I would be interested. Not sure how to best contact you. Thanks for the info anyway.
@vincematthews53312 күн бұрын
Studying for my CFP exam and came across this stuff which baffled me. The books I have aren't even close to what this video shows you. I watched this video and it made everything clear in 11 mins. Saves lots of time. Great presentation!
@OKOnomics12 күн бұрын
Didnt know about that webpage, its very useful thanks!
@_solostudio17 күн бұрын
the percentage table make confusion. which percentage is for borrow and which is deposit and which is euros and dollar.
@uiiicec442517 күн бұрын
So soooo helpful! I don’t understand why all people are preaching the BA II calculator but this 12C ones is the true gem! It saved me at least a few minutes when doing the 2nd example. Thanks god you are here on KZfaq ❤
@joshmorgan22820 күн бұрын
IS A STANDARD deviation of 12 really big?
@GraceColvinWiedmeyer22 күн бұрын
I tried to download risk solver but it was blocked. What are some alteratives?
@robertlukas928622 күн бұрын
I see nothing that tells me how to build this table. Monte Carlo trick aside
@robertlukas928622 күн бұрын
Hoping someone answers as posting is older. Can you, instead of using 10K per year of savings use 10K per year spend down (- sign for that cell instead of + sign)?
@jimparsons680322 күн бұрын
Useful application and very practical and easy to use. Liked your other clips too. Many thanks.
@alexusflannigan679826 күн бұрын
Thank u I’ve been up studying for my CFP exam 1 midterm and I got overwhelmed and felt like a failure.. found you on KZfaq and I’m so happy. Please keep going! Thank you for your service!
@hamprepper27 күн бұрын
You might owe after 2025 😕
@berkaymurat264728 күн бұрын
Purely amazing! Should have been viewed by millions. Saves lots of hours.
@jmanassa1Ай бұрын
How do you figure a daily interest rate for 200,000.00 at 5% for 256 days
@MahmoudAhmed-u1eАй бұрын
Thank you fir the video, however, it does not work for stocks in Saudi Arabia market.
@dejanfrommann2452Ай бұрын
is this the duration or the modified duration
@RonaldMoyАй бұрын
Modified duration because we are dividing the Macaulay duration by 1+ yield.
@nancyhuerta5837Ай бұрын
This is the most useful video I've found :)
@NguyenTuanMinhK18HLАй бұрын
Thank you for this helpful formula
@mohanaiduАй бұрын
Thanks 🎉🎉🎉
@anthonyasp2111Ай бұрын
This is full of great excel tips, but I am not sure of the applicability to retirement planning.
@richardgordonАй бұрын
Thank you for these amazing videos. I’ve learned so much from watching them…. Cheers!
@patrickchambless9913Ай бұрын
I am getting a different outcome following the same procedure. Using the HP10bll+, I first clear the CMEM by upshifting, hit C MEM the 1. Next enter 5 for # of years > N key > 10 > I/YR > 100 > PV > FV and I get -104.2367 (set to 4 Dec places per your recommendation). Have also used C ALL prior to same process with same results. Please advise!
@patrickchambless9913Ай бұрын
I figured it out. Make sure to set P/YR to 1. The default setting is 12.
@patrickchambless9913Ай бұрын
Furthermore, you explain this to everyone in your video and I had it paused just prior! Thanks for being thorough.
@mohanaiduАй бұрын
❤ ni ce
@FELIX-qr6vdАй бұрын
How do you put parentheses?
@aiwilson95Ай бұрын
I am getting a different number - 7.6289
@WorldWideSk8boardingАй бұрын
u got it wrong
@maphyozzo2 ай бұрын
Impressive explanation. Congratulations man!
@clk19772 ай бұрын
Thanks professor, as always.
@nkurunzizanathan2 ай бұрын
Thank you for this wonderful explanation but could you please demonstrate how to answer a question from first table thank you or picking data from that respective table.
@RonaldMoy2 ай бұрын
Not sure what you want me to do.
@madisonmoncada92382 ай бұрын
Hi Dr., I have found your work easy to follow, even though I need to be better versed in the latest technology. I took your advice and tried replicating my portfolio in Google Sheets, but I need help accessing the prices for my corporate and US bonds. Do you have any alternative solutions that might work for me? I would appreciate any help you can provide. Thank you so much.
@madisonmoncada92382 ай бұрын
Hi, I have found your work easy to follow, even though I am not well-versed in the latest technology. I took your advice and tried replicating my portfolio in Google Sheets, but I'm having trouble accessing the prices for my corporate and US bonds. Do you have any alternative solutions that might work for me? I would appreciate any help you can provide. Thnaks
@clk19772 ай бұрын
thanks professor as always!
@richardgordon2 ай бұрын
This is really brilliant 😮
@user-gj2er5vy3i2 ай бұрын
This is incorrect - you cant take monthly stock returns and annual RF rate
@brettwilson36532 ай бұрын
I believe the "TBILLYIELD" function in excel is incorrect. Just to verify, shouldn't the TBILLYIELD also equal the discount rate? According to the Department of Treasury the discount rate: d = (($100-Price)/ *$100* ) X (360 days / r days), where r = days to maturity. This is not the same as the Excel Formula, which you provided as: TBILLYIELD =(($100-Price)/ *Price* ) X (360 / DSM ). I know if we use your numbers, then both formulas would exactly equal each other in this specific case. However, if we change the third decimal place by one number, let’s say $99.672 instead of $99.673, then: d = (($100-$99.672)/$100) X (360 days / 28 days) = 0.042171429 -> 4.217% vs. TBILLYIELD =(($100-$99.672)/$99.672) X (360 / 28 ) = 0.042310206 -> 4.231% Therefore, they are not the same. I also believe that the TBILLEQ formula from Excel is *sometimes* wrong. According the Department of Treasury the “Coupon Equivalent Yield” i = (($100-Price)/Price) X (y / r) (Note: this formula is for bills of not more than one half-year to maturity) where r = the number of days remaining to maturity y = number of days in year following the issue date; normally 365, but if the period from the issue date to the same date 1 year ahead contains February 29, then y is 366. (e.g., 2020 is a leap year. Suppose the issue date for a 26-week bill is February 28, 2019. The date 1 year ahead is February 28, 2020. That 1-year period from the issue date of the bill does not contain “February 29,” therefore y = 365. Now suppose the issue date of a 26-week bill is March 1, 2019. The date 1 year ahead is March 1, 2020. That 1-year period from the issue date of the bill contains “February 29,” therefore y = 366.) Therefore “i” could be: i = (($100-Price)/Price) X (365 / r) or i = (($100-Price)/Price) X (366 / r) depending on the number of days in year following the issue date. From Microsoft, TBILLEQ = (365 x rate)/(360-(rate x DSM)) As far as I’m aware, the 365 does not change to 366 if the date one year from the issue date is 366 days. Just so you guys know, I got the this information from the following discount rate d = (($100-Price)/$100) X (360 days / r days) where r = days to maturity File: ofcalc6decbill.pdf from treasurydirect (page 1) i = (($100-Price)/Price) X (y / r) from google search “Appendix B to Part 356” under ecfr link scroll all the way down to “D. Calculation of investment rate (coupon-equivalent yield) for Treasury bills:”
@richardgordon2 ай бұрын
Superb video! Thanks a lot!
@theone78572 ай бұрын
You should consider the annualized return but you didn't do it You used the monthly return This is wrong that I think
@emilyfau-goodwin92732 ай бұрын
When you look at the option premium e.g- $0.02 (in the first example) and multiply by 100m GBP to get a cost of $2m. Does it matter that they are in two different currencies? or is it better to convert the 100m into USD at the spot rate first?
@captainsurvivor97812 ай бұрын
It seems a lot of people here are confused as to why company A has an absolute comparative advantage.From what I understand we should not be comparing the 8% domestic rate with the 7% foreign rate. Instead, compare the 7% foreign rate it would have had to pay with the 6% it actually pays. Same in the case of company B, compare the 9% it would have had to pay with the 8% it actually has to pay. Essentially each firm is taking advantage of the fact that the other firm can borrow locally at a lesser rate.Correct me if I'm wrong
@mm0dk0ur2 ай бұрын
Many thanks Ronald, can you please make a video showing the returns affected but adding cash and withdrawals from the account? Also for the above example is there a better way when for the same stock you have several purchases at different date ? Thanks
@seatonluck52682 ай бұрын
Is this the formula used by finance/banker bros for exponential assets/gains? 353% annualized on my crypto acct seems a bit low and I need to borrow more @14%
@wirsyt2 ай бұрын
Thank you Ronald. It will be a great help if you can perhaps maybe generalize this CAGR calculation for a more realistic scenario. With realistic scenario, I mean instead of buying a stock in just one shot, how can we calculate annualized return if we were buying chunks at regular intervals i.e. Dollar Cost Averaging). Also, is there a way to account for dividend income in this calculation?
@mouhamadoudiallo-cn8sp2 ай бұрын
thanks you soo much i am doing an online classe on edx on financial market analysis and your video was very helpfule