On Utility functions , which some people in academia live and breathe by : “It is difficult to identify the underlying utilities and to tell exactly when the utilities are being maximized , in the case of a mutual fund or a pension fund. The fund manager is cooking for an army. It’s impractical to gauge everyone’s taste for salt-or risk” -- Henry Latane

Prof, Niall Ferguson says, one doesn’t have to worry too much. Some of his arguments are very convincing. http://fora.tv/embedded_player

There is nothing noble about being superior to some other person. True nobility lies in being superior to your former self - Anonymous

One of my friend jokingly remarks that some things in life need to be accepted whether they make sense or not. One of those things he mentions is the dependency between Nifty and S&P500 . One often sees that S&P500 movements and Nifty movements are correlated for no reason. Let me to put some numbers to the angrezi, Cor(NIFTY, S&P Returns) I wonder how these numbers will look in the coming 5 years, now that US is getting in to a never seen before kind of recession.

I guess this illustration serves as one of the best ways of explaining pascal’s triangle to a kid. If you at A, each intersections of street and avenue has a number which tells you the # of ways to reach that intersection. By the way, the above model is exactly what is taught in binomial tree option pricing in most of MBA courses around the world!