Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
0Activity
0 of .
Results for:
No results containing your search query
P. 1
1 - 4 - 1.2 Introduction- Class Information (16-45)

1 - 4 - 1.2 Introduction- Class Information (16-45)

Ratings: (0)|Views: 0|Likes:
Published by Ayman Osama
1 - 4 - 1.2 Introduction- Class Information (16-45)
1 - 4 - 1.2 Introduction- Class Information (16-45)

More info:

Published by: Ayman Osama on Feb 03, 2014
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as TXT, PDF, TXT or read online from Scribd
See more
See less

02/03/2014

pdf

text

original

 
Now I'm going to move over to thepre-requisites of this classand this is a very important topicbecause it's kind of a tension,I feel a little bit of a tension of telling youwhat you should know and,at the same time, encouraging you not toworry about pre-requisitesSo, some knowledge and skills, obviouslywill help, and let me emphasize a fewof those things, and this will be a littlebit much for youso just don't worry what things I'm putting up,there's a reason for that.First of all: Economics.Economics is the mother-discipline of Finance.The good news is it's extremely intuitive.In fact, when I teach, the thing that surprises me,and I teach graduate students,repeatedly, and in a very pleasant way, it's peoplethat have hadno background in Economics,no background in Businessand they just lap up Economics in this.It kind of reminds me of my ownjourney in life.I mean, I believe life is a bunch of accidents.I mean, nobody plansand, if you do plan at sixteento be the president of the country,then there's something wrong with you.You just take advantage of opportunities.That's what we call life, anyway.I'll say things like this throughout the classand I hope you enjoy them.If you don't, just pause, or move forward.So, Economics is something that comes naturallyto most people. And I think,having a background is important,but you could, again, use this classto develop that background and tosatisfy your curiosity.Mathematics and Statistics.This is a tough one,and the reason is, I put Mathematics, whichpretty much coversall Math invented. But I think we'll largely useAlgebra.And if you feel comfortable with Algebra,we will get through.But I promise you,I will not use a formula, unless I can explain it in words.And I'm talking in English,because that's the language I'm comfortable with.So, whatever language you're comfortable with,force yourselfto first say it in words, before using the formula.Because I think the formula reflectswhat we are thinking, not the other way around.And that's one of the problems with Finance
 
and technical areas.That we somehow think, that, just becausethere's Math, there's a definitive answer.All answers are wrong.There's a bunch of assumptions,that we make in valuing things,because it's about the futureand it's your assumptions andyour way of thinking,that's the value part, not the final answer.I mean,anybody can crank through Excel and come upwith an answer, it doesn't mean much.Statistics.I think Mathematics broadly defined what I presumewould cover Statistics, but I want to emphasizeStatistics a little bit and,the reason I'm doing that is,when we go to Risk and UncertaintyI will be using Statistics.So, Economics, Math and Statistics are three thingsthat areI would say, form the integral partof what Finance is all about.But I promise you that these three,we will try to take care ofduring the class.So I am not going to dilute the content,but I'm going to use whatever skills I haveto motivate you to learn this stuff andto useall three in a very real-world kindof context, so that you all get excited about it.The next one is a little bit of a challengebecause Accounting, is like a language.I make fun of Accounting all the time,you see Accounting is like a language, I mean, if I didn't speak Englishand the only language you understoodwas English, well,there was a problem here.Accounting is the language ofBusiness.But, like all languages, it's kind of,limited.You know, don't you sometimes,want to say something and you knowten languages and you just can't,the word still doesn't come to yourlips or your tongue or whatever.And the reason is, because languages arelimiting.They are useful, obviously,but they're also limitingI mean, the emotion that I feelsometimesI cannot put in wordsand I'm pretty comfortable with that,so what do I do? I hug someone, right?So, luckily, you don't need to talk as a human,
 
but I can't hug you from a distance,so I'll give you a virtual hug, if you want it.So, Accounting has the troubleof being like English, orJapanese, or Hindi,whichever is your mother tongue.It's that it's limiting.Finance is awesome. Finance is life.So imagine you take Accounting to life,you've got a problem, because [laughs]Accounting is a language and life is awesome.So,the trouble, though, is unless you can communicateto each other through a language,you will be stuck.So, the one class that I think we requireall our students to have is Accounting.And if I will shy away from one topic,it's Accounting a little bit,but we will do enough of it, so thatyou can go learn on your own.So, if you like this class, I would recommend verystrongly to do Accounting,on your own, or through a similar online class, orin a real classroom if you have that opportunity.Because what it'll do isit'll make you understandthe language of Business better.The second aspect of Accounting which is importantis, it'slanguages are country-dependent, andAccounting is just like that, soI can't teach you all the Accounting,of every country in the world,even if I knew it. But I'll teach you the principles,the important ones as we go along.Finally,something that's execution-oriented. I would call it an Excel, a calculator,a simple calculator, a financial calculator.All the stuff that we'll do on Excel and calculator,at least for this class,is pretty easy. But, the trouble is, if you haven't everseen it before,and haven't ever used it before, it seems mind-bogglingly difficult. It's not,and the beauty of Finance is, whatever wordsI say, are exactly, or symbols I use,are exactly the same ones that you'll see in Excel,or a financial calculator.So, to make your life a little bit easier, what I'm goingto do is, I'm going to violate one of my principles,which I, in real time I follow, which is, I refuse todo Excel in class,and the reason is, I don't want the class to become anExcel class,because that's missing the boat completely.In fact, that's completely counter to myphilosophy.The awesomeness of Finance isstand-alone,Excel, calculator, you need to figure out answers,

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->