In France, they have a test which called baccalauréat. The baccalaureate qualification is a national examination to get university admission which students take at the end of the lycée (high school). Students can enter all universities as a general rule in France by acquiring the baccalaureate. The university where they can enter is decided based on the capacity of the university, test results, or a place of residence of the baccalaureate. This is a good system.
In United States, students need at least $ 140,000 tuition to graduate university. American students must take ACT or SAT to go to the college and they need good score on it. However, in France, they have a system in which those who pass are admitted to a tuition-free state university. This allows two thirds of the students to attend university for free.
In America graduation from university does not guarantee a good job. In addition, people must study to take a test depending on a company in spite of having graduated from a university. However, in France people can have a good occupation if they get a good score at bac and then graduate university.
By taking and studying for bac, the academic level of the country goes up because people want to pass the bac. Bac includes a wide range of subjects. Students have to study most of subjects such as languages, history, mathematics, chemistry, physics, art, and philosophy. On the other hand, ACT and SAT only includes writing, reading, and math section.
Common factors determine the average returns of stocks and bonds (1993) by Fama & French in Journal of Financial Economics, Vol. 33, p. 3‐56. Data Span: 1963‐1990 Frequency: Monthly Assets: stocks listed on NYSE, Amex, and NASDAQ, US government and Corporate bonds. Input variables: (1) excess returns of the market RM (t ) RF (t ) , market returns minus risk free returns (2) size SMB (t ) RS (t ) RL (t ) , returns of small stocks minus returns of large stocks, details see below…
Polytechnique de Montréal, Montréal, Que, Canada Madeleine Proulx, Coordinator of Library Services to Canada Chairs at Bibliothèque de Polytechnique de Montréal, Montréal, Que, Canada Introduction Founded in 1873, Polytechnique de Montréal is a French engineering school with 200 Faculty and 6, 000 students. The Library is under the Research and Innovation Directorate. In 1999, the Polytechnique Action Plan proposed that a specific objective on a library instruction program be given to all graduate…
CAPM and Factor Models Part I: CAPM (Mandatory for all groups) 1. Request a password for WRDS (Wharton Research Data Service) database. 2. In WRDS, find Compustat database. There you can find information on the book value of equity. Also, find information on the market value of equity and market capitalization. 3. Based on the above information, select two companies that you will work with throughout this project. The first company should be a large cap stock with high book to market (BM)…
French Châteaux / Churches Project Language: Français / Anglais We are taking a train ride into the Loire Valley where many French châteaux are found. Select a château or church of your choice. Research as much as you are able to of your château or church, then write the following information about it. Present it in a portfolio PowerPoint or a video, or one of the following below. Select one of the following and include it with your portfolio 1. make a travel poster advertising accommodations…
Market Efficiency (BKM 11, 12, 13) BUFN 740: Capital Markets Topic 4 1 Multifactor Asset Pricing Models CAPM is a model that can be used to (1) explain why certain firms have certain returns; and (2) estimate expected return (discount rate). But it does not work. The empirical failure of CAPM leaves room for improvement Maybe we should not use the market portfolio return as the only systematic factor – The market portfolio might not be representative BUFN 740: Capital Markets Topic 4 2…
Dimensional Fund Advisors, 2002 1. What is DFA’s business strategy? What do you think of the firm? Are the DFA people really believe in efficient markets? Dimensional Fund Advisors (DFA) primarily focuses on the investment of small stock funds. DFA’s business strategies are as following: * DFA was dedicated to the principle that the stock market was efficient. * DFA believes the value of sound academic research. * DFA believes the ability of skilled traders to contribute to a fund’s…
Finally, the various portfolio combinations will be assessed and a recommendation will be made to the investor on the portfolio combination that has the lowest level of risk. 1. INTRODUCTION Mean-Variance approach and capital asset pricing model (CAPM) are two important quantitative finance theories that enable investors to select portfolio by assessing its risk and return (Varian 1993). In this report, two companies from different industries are chosen to construct the portfolio, which are Woolworths…
Also assume that stock j has a beta of 1.5, a standard deviation of excess returns of .4, and that the market excess return has a standard deviation of .1. a. Find E[ b. Find Var[ ] c. What proportion of the asset j’s variance is systematic? d. What determines systematic risk? To answer this question use the formulas for the systematic risk. e. What proportion of the variance is unsystematic? 1. Assume the excess return on stock j can be written as f. What is the total systematic and unsystematic variance in stock j…
Fund Analysis 1 Below you will find a 2-‐page excerpt of an analysis I completed on fund manager BDV . Table 1: Risk adjusted alpha, using a single factor model (BDV regressed against S&P) Table 1 indicates that R-‐square at a high correlation, showing that 84% of the manager’s…