Bionic Turtle
Bionic Turtle
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The SML is a general CML (informal FRM tip series)
A forum member asked me this great question; "If the CML plots well-diversified portfolios, and well-diversified portfolios have no idiosyncratic risk, then isn't the CML also a plot of systematic risk (aka, beta)? Put another way, doesn't the CML already map to the SML?" My response is here forum.bionicturtle.com/threads/week-in-financial-education-2021-05-24.23840/post-88829
This mathematically explains why my favorite summary distinction of the difference between the CML and SML is this: the CML plots only (the most) efficient portfolios, but the SML plots all portfolios (including inefficient portfolios). I hope that's interesting!
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For other videos in our Financial Risk Manager (FRM) series, visit these playlists:
Texas Instruments BA II+ Calculator
czcams.com/play/PLCBifSfCnx3sjobyTnEyv2N4baxF8-wiS.html
Risk Foundations (FRM Topic 1)
czcams.com/play/PLCBifSfCnx3sm2OmHA1BO41Zcc4ntUwMG.html
Quantitative Analysis (FRM Topic 2)
czcams.com/play/PLCBifSfCnx3sormazeHQr5G9etDITYStF.html
Financial Markets and Products: Intro to Derivatives (FRM Topic 3, Hull Ch 1-7)
czcams.com/play/PLCBifSfCnx3tQuvaS-lG-8ZqUh7NvxRDg.html
Financial Markets and Products: Option Trading Strategies (FRM Topic 3, Hull Ch 10-12)
czcams.com/play/PLCBifSfCnx3s7iycLx2eZQeIUPo_4a8n8.html
FM&P: Intro to Derivatives: Exotic options (FRM Topic 3)
czcams.com/play/PLCBifSfCnx3sfoUGYayuqJRhHA5jCFkGr.html
Valuation and RIsk Models (FRM Topic 4)
czcams.com/play/PLCBifSfCnx3sqbQnW4HkZ3HoScTG0Lluz.html
Coming Soon ....
Market Risk (FRM Topic 5)
Credit Risk (FRM Topic 6)
Operational Risk (FRM Topic 7)
Investment Risk (FRM Topic 8)
Current Issues (FRM Topic 9)
For videos in our Chartered Financial Analyst (CFA) series, visit these playlists:
Chartered Financial Analyst (CFA) Level 1 Volume 1
czcams.com/play/PLCBifSfCnx3uvB-bf5flMe0gRt0fGyvuz.html
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zhlédnutí: 5 751

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zhlédnutí 19KPřed 4 lety
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zhlédnutí 16KPřed 4 lety
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zhlédnutí 11KPřed 4 lety
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zhlédnutí 18KPřed 4 lety
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zhlédnutí 6KPřed 4 lety
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zhlédnutí 24KPřed 4 lety
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zhlédnutí 10KPřed 4 lety
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Komentáře

  • @tonysu8286
    @tonysu8286 Před 4 hodinami

    How does the number is discounted to 4.367? Whats the step of the calculation?

  • @waterfairy60
    @waterfairy60 Před 20 hodinami

    Thank You!!

  • @lucasnacimento1209
    @lucasnacimento1209 Před 22 hodinami

    In a chooser option, where T1 would be the buy CALL or buy PUT, does the final value of the option remain the same? $ 10.890?

  • @filipeefei
    @filipeefei Před 3 dny

    Excellent video, thanks a lot.. I have one doubt.. Is it possible to neutralize Gamma of a portfolio, using only SPY? In other words, how to calculate total Gamma of a portfolio, like we do with Delta-Beta (weighted Delta or Delta Dollars). Or in case of Gamma is only possible to neutralize individualy per underline position? What about Vega?

  • @desertjedi
    @desertjedi Před 4 dny

    What's a calculator? 😅

  • @juliandiaz9367
    @juliandiaz9367 Před 4 dny

    Wouldn’t it be better for the writer of the options to only start hedging IF the price of the stock bridges the strike price? Because (assuming European style options) as long as the options ends up OTM then the options will expire worthless and all that unnecessary hedging won’t eat away the premium.

  • @francescocosma1506
    @francescocosma1506 Před 5 dny

    why in H27 you didn't do, to actualize, 5.000/((1+libor)^0.5)?

  • @tuananh0411
    @tuananh0411 Před 6 dny

    Very Great video. Thanks!

  • @oliwoohoo
    @oliwoohoo Před 7 dny

    Thank you sooooo much for your help and all the excellently well organized lectures. You’re literally my best F&O TEACHER on CZcams!!!!! Thank you 🙏

  •  Před 10 dny

    Thanks for the wonderful explanation. Could you please Re-share the Excel link as on Dropbox it's deleted.

  • @oliwoohoo
    @oliwoohoo Před 11 dny

    one of the best explanations!! thank you so much !!!

  • @chloeliu-br8tc
    @chloeliu-br8tc Před 14 dny

    Super useful before exam!! 🎉 🎉

  • @robertkrol4538
    @robertkrol4538 Před 14 dny

    Nice explanation, as always. How about duration?

  • @marmarsa
    @marmarsa Před 17 dny

    save mt life turtle man <3

  • @randymi9334
    @randymi9334 Před 17 dny

    16 year old video has the most coherent explaination of basis. Thanks!

  • @henrycosentino7818
    @henrycosentino7818 Před 19 dny

    In what situation would one use a par rate vs spot rate in their analysis or valuation of bonds/fixed-income securities?

  • @scottwinter4590
    @scottwinter4590 Před 19 dny

    This model seems to have a problem with the yield curves of 2024. Interpolation visually seems to be linear. Totally missing the inversion between 20 year and 30 year, and all years between 11 and 20. Good in the early years though.

  • @kidkid123123123
    @kidkid123123123 Před 21 dnem

    What's the difference btw the 2 super senior tranches?

  • @TuanYen-xz4jb
    @TuanYen-xz4jb Před 24 dny

    Why dont use boostraping for calculating forward rates?

  • @waqashussain2310
    @waqashussain2310 Před 25 dny

    if I have a negative NPV is this better for my US currency or worse : because the only way to get a negative NPV would be if we are paying a higher amount and receiving a lower amount giving me a negative premium. However other sources state that a negative premium/NPV value is in fact better for us as this means your premium as a cost will decrease by that much and therefore save you money. All in all my question is what does a negative NPV value mean good or bad for the US ? thank you

  • @SD-mc1zr
    @SD-mc1zr Před 27 dny

    Gr8 Summary .. difficult concept but now getting it

  • @benpierce2202
    @benpierce2202 Před 29 dny

    Which version of John Hull's book do you use for this example?

  • @reelbigstudios
    @reelbigstudios Před měsícem

    Are all the returns log returns?

  • @migelvandevoorde9593
    @migelvandevoorde9593 Před měsícem

    thank you so much

  • @md.ayaan.sheikh
    @md.ayaan.sheikh Před měsícem

    IIMB!!!!

  • @arjavjain5671
    @arjavjain5671 Před měsícem

    the excel u use are immaculate ong

  • @user-eu6ym3zo5t
    @user-eu6ym3zo5t Před měsícem

    Can I speak to anyone here about all of this like a group chat or discord where we can discuss all of this I really need help pleaze

  • @user-eu6ym3zo5t
    @user-eu6ym3zo5t Před měsícem

    I really don't get this guys, but I really want to change my families life through investment and trading is there anybody interested in talking to me and or act as a mentor please. I'm desperate, but I can't afford to pay anyone right now. I have learnt to day trade and I am profitable. I just want to continue to sharpen my knowledge and have an edge

  • @hernanalzate1582
    @hernanalzate1582 Před měsícem

    what a shame, the excel spreadsheet no longer exists!

  • @haythemtilouch1191
    @haythemtilouch1191 Před měsícem

    Question : what is the diffrence between RIB RW function and the calculation of the Economic capital ? and btw thank you for your amazing videos, you make complex concepts look very easy to understand.

  • @shirinjamadar6771
    @shirinjamadar6771 Před měsícem

    where did you get 250 from?

  • @somebody5186
    @somebody5186 Před měsícem

    Too much words. As for me.

  • @nitinghatkar246
    @nitinghatkar246 Před měsícem

    Thanks

  • @mariana__7814
    @mariana__7814 Před měsícem

    hi David, is it possible for you to re-upload the excel file? I think it has been deleted from Dropbox since. I would love to know, how you created the portfolio possibilities curve. Thank you!

  • @TuanNguyen-me6lw
    @TuanNguyen-me6lw Před měsícem

    can someone give me Bionic Turtle's xls file, i click the link but its has been delete

  • @arjavjain5671
    @arjavjain5671 Před měsícem

    brother looks like 2010 christian horner

  • @siwx_x2371
    @siwx_x2371 Před 2 měsíci

    u saved my life

  • @argonaut119
    @argonaut119 Před 2 měsíci

    Hello: Interesting analysis of the BSM. But you don't mention the details of your Excel sheet. Do you make it available on your website? Without viewing the details of your derivations, as would be available or shown in scientific papers, then it is difficult to see the nature of your analysis. It's perfectly acceptable to have this sheet as an additional paid service, but without seeing it, a trader analyst cannot determine the quality of the analysis.

  • @rafaelgomez1989
    @rafaelgomez1989 Před 2 měsíci

    If I pay the TAXES of the selling price OUT OF POCKET, do I still have to calculate the TAX on the lease payment toward the end of this video ?

  • @rafaelgomez1989
    @rafaelgomez1989 Před 2 měsíci

    🎉DETAILED + CLEARLY EXPLAINED ... THIS IS GOLD !!!! THANK YOU SO MUCH

  • @NyxieNox
    @NyxieNox Před 2 měsíci

    Thank you so much! I've watched a few of your videos and they've truly helped clarify a few things in my finance class!

  • @user-xl9zo6rs5y
    @user-xl9zo6rs5y Před 2 měsíci

    For those who concerned about Positive Theta, Deep In-the-money options nowadays suffer from severe IV smile effects (e.g. IV = 50% for At-the-money, IV = 120% for Deep In-the-money) and thus Theta will never be Positive.

    • @user-xl9zo6rs5y
      @user-xl9zo6rs5y Před 2 měsíci

      Go check Theta formula, the second term +rKeN(-d2) is not capable to compensate the first term if IV increased dramatically for Deep In-the-money options.

  • @lexunajinrui1340
    @lexunajinrui1340 Před 2 měsíci

    When you have a negative Ebit and negative Equity the result is strange how ti correct that?

  • @vikramrajiyer
    @vikramrajiyer Před 2 měsíci

    Shouldn't we also subtract the cost of economic capital from the numerator?

  • @growlife4779
    @growlife4779 Před 2 měsíci

    thanks very much helpful 11 years on

  • @markmorrissey672
    @markmorrissey672 Před 2 měsíci

    Hi - I really liked this video and would like to learn more about greek neutral strategies. I assume that given neutral the profits are made with a positive theta portfolio. I was wondering how I made obtain the spreadsheet you have? I noticed it taken down. Thanks!

  • @neommusi7964
    @neommusi7964 Před 2 měsíci

    Hi I’m final year student in Varsity and completing financial Management. I was hoping know to where can I get these spreadsheets or excels sheets for practical practice

  • @T-no_86
    @T-no_86 Před 2 měsíci

    Thank you Sir!

  • @Alex-qn6gt
    @Alex-qn6gt Před 2 měsíci

    How is the discount curve different from the spot rate curve?

  • @shantanushit8963
    @shantanushit8963 Před 2 měsíci

    is tht 1184 a random value which we estimated it will be at that point?