7739 research outputs found
Sort by
Multi-Stage Stock Pricing Techniques for the Classroom
No full textA process for multi-stage stock pricing is presented with evidence of improved classroom performance. The technique is expanded for more advanced class presentations and for potential fmtech applications by taking advantage of present value annuity and future value annuity due structures. Although advanced, the expanded technique can be performed iteratively on a financial calculator
Student Reaction to Online Learning During COVID-19
No full textThis paper explores student adaptation to online learning as a result of higher education courses moving into distance learning during the COVID-19 pandemic. We conduct surveys of students enrolled in fully asynchronous online Introductory Corporate Finance classes and find that student effort plays a significant role in student perception of online courses. We also find that those studying a lot are happy with online courses and will take more online courses after the pandemic, but others expect to enroll in fewer or the same number of online courses post pandemic
An Empirical Implementation of a Two-Standard-Deviation Investment Signaling Framework Across Multiple Asset Classes
No full textThis paper presents a pedagogically driven application of a quantitative investment signaling model based on two standard deviation bands. Deviations beyond the two standard deviation range are interpreted as potential mean reversion signals, triggering tactical shifts in asset allocation or trading actions. Students construct the models in Excel using live market data, overlaying asset returns against calculated deviation bands to inform decisions. The firsthand approach emphasizes applied learning and critical thinking, with students analyzing model results and presenting empirical findings. Evidence suggests this experiential method significantly enhances student engagement, comprehension, and retention of investment strategy concepts across diverse financial setting
Characterizing Student Finance Organizations-A Survey of FMA Chapters
No full textThis manuscript presents the results of a survey of faculty advisors of student chapters of the Financial Management Association International (FMA). The institutions, advisors, and chapters are characterized in an effort to better understand how institutions serve their students—through the management of chapters and also how institutions provide that service through assignment of faculty advisors. The evidence indicates that chapters provide a wide-range of services and opportunities to students through the chapters, yet there appears to be differing perspectives as to the role, nature, and assignment, of chapter advisors
The Textbook Adoption Process by Economics Professors
No full textTextbooks are an integral component of the higher education process. This study examines the textbook selection process and the marketing techniques used by publishers to encourage adoption. A total of 134 survey responses were collected. Results indicate that content, ancillary materials, length of the textbook and textbook costs are the primary drivers of adoption. Examination copies, contact by book reps, and direct mail flyers were the best methods of encouraging economics faculty to examine a new textbook. Significant differences were found based on years of teaching experience, rank, and the institution’s student enrollment
Help Your Students Realize Their Retirement Dreams by Quantifying the Cost of Procrastination
No full textIn this paper we discuss the details of a dollar-a-day investment plan that professors can use when teaching a course in finance or economics. The goal is to explain the power of compounding and to illustrate the opportunity cost of procrastination. Our hope is that the narrative and examples will not only help students to understand these concepts but also motivate them to begin a modest investment regimen while in college. We also use the Shiller dataset to find an optimal look-back period that can be applied to making projections for the size of future retirement nest eggs
Black-Scholes Option Pricing: Implementing a Hands-On Assignment Using Excel
No full textDemonstrating the complete Black-Scholes option pricing formula in a traditional classroom setting presents several challenges due to its complex nature. Therefore, there are several educational benefits to requiring an interactive Excel assignment that engages students in formula programming to observe instantaneous price changes in calls and puts. Students gain job-transferable Excel skills and learn how the major components of the option pricing formula affect the resulting option price. Additionally, the educator benefits from the introduction of a simple macro function that expedites grading complex formulas
Swansonomics: Using “Parks and Recreation” to Teach Economics
No full textBased on a first-year multidisciplinary course, Swansonomics is a class where students examine the libertarian beliefs espoused by the character Ron Swanson from the television series Parks and Recreation. The show provides great examples of rent seeking, fiscal policy issues, social policy issues, and bureaucratic incentive structures. These Parks and Recreation video clips can be used in any class to cover a variety of issues. Examples of topics include the expected economic consequences of specific political or economic philosophies, unintended consequences of policies, various systems of taxation, public and private incentive structures, and varying degrees of capitalism and government intervention
The Relationship between the Promised and Realized Yields to Maturity Revisited
No full textThis paper reaffirms the long-held view that the promised yield to maturity of a coupon bond can be realized only under certain restrictive conditions. Specifically, the realized yield equals the promised yield only if the spot rate and yield curves are flat and remain unchanged throughout the term of the bond, a condition which rarely if ever holds. In addition, we explain that, regardless of the reinvestment rates, the promised yield on a coupon bond will be realized, provided that the bond is held not to its maturity but to its duration
Yield-to-Maturity and the Reinvestment of Coupon Payments: Reply
No full textOur original note addressed a common misconception that to earn the yield-to-maturity (YTM) on a coupon bond an investor must reinvest the coupon payments. Shirvani and Wilbratte (2009) take issue with our presentation and results. We will demonstrate that their arguments entirety rest on the proposition that the YTM must equal the realized compounded yield (RCY). This is a construct that explicitly assumes coupon reinvestment. We made no claim in our original presentation with regard to their proposition, because it is not required to calculate the YTM. Furthermore, we will discuss their claims with regard to the “economic significance” of the yield to maturity measure