infinitybenzo

mthmchris Wrote:
-------------------------------------------------------
>
> When Americans go abroad, many times people say we
> do things to EXCESS. We eat lots of fatty fast
> food, we drink alot, and we are promiscuous.
> MCD - BAC - ASS
> M-C-D - BA - CA - SS
> (This one is goofy because you need to split apart
> the 'BA' and 'CA')
> Market Selection
> Currency Selection
> Duration Management
> Investing outside a BENCHMARK that's APPROPRIATE
> Credit Analysis
> Sector Selection
>

Brilliant stuff. This one I remember by using McDonalds (MCD) Sells Chicken Internationally

Market Selection
Currency Selection
Duration Management
Sector Allocation
Credit Analysis
Investing outside the benchmark that's appropriate

susana

bump. brilliant!

ll11

For the taylor rule, if you get confused on which one goes first, forecast or trend, just think of the alphabet, F comes before T

Colum

for micro attrib i think PB=peanut butter=portfolio-benchmark.

Works for pure sector allocation weights
works for within sector returns
works for interaction effect for weights and returns

Samurai = benchmark
delhi = asset classes
c-putter = emergin market risk
ocraps = traps in forecasting

lcw77

zoya, feel free to use the "ET rule", it was meant to be spread and I don't know if I was the first to think of it

mcmc

So this isn't a pneumonic in a sense but those of us who constantly flub the Return requirement calc, I think of TIT(s) (tee hee hee... I said a dirty word!)

Taxes - are you incorporating taxes in all the numbers? Are they all pre or after tax? Have you taken away the taxes or alternatively given tax breaks where they are due?

Inflation - are some of those expenses/inflows subject to inflation? Are you adjusting it right either inflating or (perhaps in a rare case) de-inflating it? Which leads us to...

Time - are the balances, inflows and outflows in the right time? Are you using this years income for next years return needs (in which case adjust)? Are you accounting for changes through time for the portfolio? Are there returns on the portfolio that you havent thought of?

TIT...

mp3bu

Risk factors that should be incorporated into an ERM:

Melty Liquid Chocolate SMORS

Financial Factors:

Market Risk
Liquidity Risk
Credit Risk

Non-Financial:

Settlement Risk
Model Risk
Operational Risk
Regulatory Risk
Soveriegn Risk

NakedPuts2011

Implementation Shortfall = Commisions Not Really Opportune

Commisions = Cost of Commissions / (Benchmark Price * Total Order)

Not filled Order = (Decision Price – Benchmark Price)/Benchmark Price * Filled Shares/Total Shares

Realized Profit = (Execution Price – Decision Price)/ Benchmark Price * Filled Shares/Total Shares

Opportunity Cost of missed trade = (Closing Price-Benchmark)/Benchmark * Unfilled Shares/Total Shares

zwjy

These are REALLY helpful for me, anyone have any more?

Perhaps Behavioral finance?