Відео

Great video man!

Thank you 🙏

Hey can you suggest some good semiconductor stocks for long term ?

Why are we using normal distribution when one of the primary purposes of using monte carlo is to avoid the assumption of normal distribution?

thanks man

These videos are so useful Ryan. Thank you very much.

Appreciate your efforts, it's very helpful for preparation... thanks ryan...

Is CF the same as ending cash balance?

I'm in the CFA Level 1 curriculum now for the November exam - this explained it so much easier than the CFA lesson. You just got to the point instead of all the bullcrap that doesn't matter.

Thank you for this insight!

NameError: name 'neg_sharpe_ratio' is not defined. Any idea what this is about, Ryan? (sharpe_ratio is already defined)

Thanks for the valuable video! One question for the z score, in case of the one sided Var then z score for 95% is 1.65 yes, but in case of the two sides it is 1.96. Could you advise me why we are taking 1 side z score? Even though we do have two tails in the graph. I want to get the concept which z score that I need to take with what intend and what situation

This is a good, simple, immaculate video with a proper diagram. Thanks, Ryan.

Great explanations, please keep it up. Greetings from Poland.

Thanks!

Being a fellow CFA and an FRM charterholder I can attest to the beauty of the presentation. Absolutely fantastic. Blown away …. Ryan

Hi Ryan, I understand multiplying the stddev.p by 252 to annualize but why are you taking the square root as well? If it were yearly data for 3 years would you do the same thing? Thanks!

Hi, thanks for the guide, its really helpful! may i know why you did not consider correlation coefficient in determining the overall portfolio standard deviation? given that the generally taught concept of portfolio standard deviation argues that diversification lowers the portfolio risk if the assets have some form of negative correlation to each other

Great explanation of basis risk and the concept of perfect vs imperfect hedges. However, I still have some follow-up questions that were not fully addressed: 1. You mentioned the gold mining company had to settle for a platinum futures contract because no gold contracts were available. How does a company decide which contract to use as a hedge if their ideal one isn't traded? What factors go into selecting the next best hedging instrument? 2. Besides gold, what are some other examples of commodities/assets that companies commonly need to hedge exposures for? 3. You defined basis risk as the uncertainty around the expiration basis. But how do firms actually quantify and estimate this potential risk exposure? 4. Are there any strategies companies can use beyond just trying to find a perfect hedge in order to reduce or manage basis risk? 5. How frequently do hedge positions typically need to be rebalanced or rolled over as contracts expire to maintain the desired hedging level? 6. What role do investment banks and brokers play in helping companies analyze, execute and manage their hedging programs and basis risk? Some more practical detail around these areas would be really helpful for fully understanding how hedging is implemented in the real world. Looking forward to any additional insights! Let me know if I missed or misinterpreted anything from the transcript as well.

Will you also make a Video covering Box-spreads? A strategy consisting of 4 options

But why do we need to take the square root of the time period?

What school did you go to? Econ degree & Finance degree vary according to what school

Hi Ryan, many thanks for your very insightful content. I noticed, that in the formula, when T is being increased from 3 to 4, the put value actually decreases. I am interested in rather long term options.. Is that to be expected due to the formula design? Cheers

WTF to the complexity of the BS model

thank you for the video!! i have a question to 11:32 every time i do this, there will be all same answers. what did i do wrong? i followed the steps :(

Can you incorporate MAGI cost as well and how it may affect Medicare Premiums Part B & D within your analysis?

why not log returns? I’ve learned from you their importance and now you don’t use them 😢

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Just learning about Monte Carlo Simulations and this is a very good example!

I came for copper and found gold. Thank you for sharing your knowledge.

Ur the best

Great video, why Spot rate is slightly higher than the par rate?

have it with more colluns or more securitys?

Ryan, I am also wondering if Standard Deduction should be incorporated in these sophisticated formulas. For 2024, the standard deduction amount has been increased for all filers, and the amounts are as follows. Single or Married Filing Separately-$14,600. Married Filing Jointly or Qualifying Surviving Spouse-$29,200. Head of Household-$21,900. This would actually lower Taxes annually on Rollover to ROTH Conversions especially those stretching from 56-90 years old to pay Lower Taxes for 35 Years (instead of 8 Years as in the video 1st example. These Standard Deduction would also help a bit on Original do nothing and remaining in Traditional IRA scenario. Additionally, Long Term Capital Gains Tax of 15% would help a great deal to reduce Taxes on Brokerage After Tax Account portion of their Income...

Ryan, Just wondering, can this couple use Low Income Years or Lenghthier than 8 Years of Conversions from Current Age until Age 90 to pay Taxes on Rollover to ROTH Conversions more gradually and to try to stay within Lower Tax Brackets possibly to never exceed 24% Tax Bracket to increase the after Tax Value of Inheritance after Conversions? Why not set this as Constraints to stay within 24% Tax Brackets only while Converting Rollover to ROTH only throughout as many years as needed to never exceed their seemingly normal for $200k+ other Income 24% Marginal Tax Bracket? Why original goal was to convert everything in 8 years (is it to qualify for something or why would their goal was to convert everything within 8 years and to go Extra mile to be in 32% Marginal Tax Rate (and thus pay 8% Tax Brackets JUMP premium, while they could comfortably do it over so many more years?

Ryan, I am just wondering if Post Tax Value on inheritance Traditional IRA would probably be close to Minus at Least 37% Tax and minus State Tax (example of CA or NY additional 10%... So it's closer to 50% Tax Cost on Inheritance of Pre-tax Traditional IRA to STIFF your Heirs with a Huge Tax Bills (especially that it must be distributed during 10 years and probably at prime earnings age for children and grandchildren due to Secure Act 2.0 which sadly decimated all financial planning by most of people who counted on 401k Stretch IRA provision for Inherited IRA or 401k (which was unfortunately not allowed since 2019 December due to Democrats change the 401k rules to get to charge Higher Taxes on those who saved). This 50% Tax on Inherited IRA should be planned unless this couple is leaving it to 12+ kids and grandkids or lives in no Income Tax on Traditional IRA or 401k (if there's such a State, we are all moving there very soon 😂😂😂. Also on Investment of Extra Income from RMDs you might want to subtract Additional Taxes and then with such higher Taxes eating out the After Tax non ROTH Brokerage Account PLUS HEAFTY IRMAA SURCHARGES (for MEDICARE High Income Tax like Penalties) this couple probably would be really benefiting from trying to convert their Rollover to ROTH by the time they reach their age 73-75...

Ryan, this is a great Spreadsheet and presentation. ❤ Thank you so much for the overview of the concepts and an example of Planning for Rollover to ROTH Conversions. But I noticed that it doesn't reflect the Sunset of Trump's Tax Cuts and Jobs Act of 2017, when Standard Deduction gets much lower and Tax Brackets JUMPING by 3 % for most Tax Brackets. Could you please comment on when these Tax Brackets are still Valid, is it including Tax Year of 2025 including which could then still be used for Rollover to ROTH Conversions with lower Taxes still? Hopefully you could update your invaluable spreadsheet for those future years most likely higher Taxes due to sunset of that really good law unfortunately (as it seems it's Democrats who want to repeal this Republican law in their efforts to raise Taxes). Also, about Bonds being part of the portfolio if we take Bonds Mutual funds for the past 5 years they would have decimated the growth of this portfolio, so it's not so trivial anymore whether affluent retirees would want to be stuck with more Bond during such proposed Portfolio Rebalancing.

Greatly appreciated!!

thank you sir

Hello, I did myself the whole excel sheet but using the monthly returns, and by averaging the monthly returns in order to put it as an annual return. In the calculation of the st dev, instead of putting the 252 trading days, what should i put ? Thanks for your help and the great video :)

Very helpful

Any other way to get the file? It won't let me download it unfortunately.

Hey Ryan! Great example here! Off topic conversation, regarding forwards, in practice, are they ever used to offset currency risk for fixed assets? Example my prof gave us is that hedge fund can receive a loan in a £200 @ 6% semi annually, on the condition they have to use it to invest in 30year USD bonds with coupon of 8%. The inflation rate of 4% in uk and 6% in USA. Currently 1 £ = 1.65 USD. How can the hedge fund mitigate the risk of currency fluctuations? Should they accept the terms of this bond? Research practical solutions/answer. So I’ve come at this from 3 perspectives: 1. Multiple forward currency contacts need to be in place, one for each payment and one for the final repayment of the loan. Probably most accurate way to calculate the value of each repayment forward at a given rate. 2. One forward contract at one rate, for the entire term of the contact, that encompasses all payments and repayments of principle. This one seems the simplest. 3. In the real world, the longest term for forwards is 10yr, for the big 4, that I know of. So they shouldn’t enter the contract due to the larger time horizons and uncertainty of currency changes due to the inability to hedge for long periods of time. Let me know if that’s true. I'm stuck on the decision, my research hasn't yield any results of real world application thus far and would appreciate any insight you might have/articles or links I can read. Edit: assume millions*

i like economics

so basically we should always do long call and never do short call?

@2:22:00 - without asking for specific financial advise: wouldn't it be wise to setup an company in a country like Luxemburg and run business over there on paper, to avoid capital-lockin?

life saver thank you!

Sir I have proceeded as you said but on Jupyter notebook , making changes in console.log() but my covariance matrix values is coming different from your values after 1st decimal places. And my sharp ratio is differing a lot . Can you tell me why this is happening and where I can show u my code

Really great video, how should one replicate this without the outlines?