# Tag Info

## Hot answers tagged investment

Accepted

### How exactly are corporate bonds priced at issue

I am not an investment banker, but usually the procedure is something like this: (0) The IB knows the yield of existing bonds with the same maturity and credit rating, so it is not too difficult for ...
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### Parameters variation in fundraising financial model

Yes, a Monte Carlo simulation (MC) is what you need. It is a well known and documented approach with many uses in finance, science and engineering. MC simulations are used to simulate the returns of ...
• 1,335
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### IPO Valuation: Share Pricing and Number of Shares

IPO valuation is super sophisticated. There is usually a Managing Underwriter, who has a team of analysts/asset pricers/investment bankers/lawyers/etc. with complicated terms and they go and value a ...
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### How exactly are corporate bonds priced at issue

In addition to @AlexC answer there are 2 additional key points. 1) if the issue is oversubscribed the IB / syndicate team will choose the allocation to each client usually based on their relative ...
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### How much market data is required to confidently predict the yearly returns of a stock?

It seems implicit in the question that you are happy to assume that the distribution of historical returns is an unbiased and consistent estimator of the distribution of future returns. Else "it ...
• 4,936
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### Compute the (Net) Present Value

No, it's not correct. The 1000 you invest at the beginning of the second year should also be discounted, That 1000 also has a present value. This gives: NPV = \frac{2200}{(1+R)^2} - \frac{1000}{(1+...
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### How to calculate performance of a private equity investment?

I am not an expert on GIPS, with its many pages of rules, but I do remember that under GIPS Private Equity results are to be given in terms of IRR (Internal Rate of Return). In most other cases (stock/...
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### NPV and efficient market hypothesis

The assumption that the discount rate should be derived from the IRR of an alternative investment is not correct. Commonly the WACC of the company (or the WACC of the funds needed for the investment ...

### What is the duration of a rolling 5 year investment?

The duration represents the sensitivity of the price of a financial instrument to current interest rates. Since at the rolling date the price will be equal to the face value no matter what happens to ...

### Open Interest on Stocks

In my opinion, your intuition that their definition is crap is correct. Google doesn’t give me another source that uses this definition either.
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1 vote

### Possible application of Polya's Urn on Portfolio's Investments?

As a Polya urn is often referred to as the rich get richer, it maybe possible to use his urn to get richer. It is known that these urns can be related to the Dirichlet-multinomial distribution. That ...
1 vote

### Comparing values of indicator between different stocks

Technical analysis is not quite in my wheelhouse, but it's been an interesting topic to me, so hopefully I can lend a hand. Let's start with some basic assumptions: Because OBV is based on volume, ...
1 vote

### How did Dimson, Marsh and Staunton (2002) computed the equity index annual real return?

All of the DMS returns are adjusting for dividends. Hence dividends are accounted in the sample. Moreover, DMS have also accounted for inflation. Hence, the real total net equity index return, now and ...
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1 vote
Accepted

### Filter the NASDAQ stocks for investment

Not really sure about papers, but it seems you are looking for a stock screener, which these two are my favorites, that you can filter stocks based on your ...
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