Egg curves anyone??

Well, the only reason that I couldn’t update the blog yesterday in spite of the fact that it was a day off for us was the fact that Arun and me were working on this amazing Fin presentation that the Prof gave to the two of us.

The presentation basically involved collating information regarding the stock prices of the CNX Nifty stocks for the past five years, calculating the co-variances of the same with each other and with the CNX Nifty Index and constructing a portfolio using the same to plot an Efficient Frontier curve.

Although at the outset it seemed quite easy to do, it turned out to be more complicated than the two of us initially thought it would be. For some weird reason, the curve simply did not follow the shape as shown in the textbook illustration. What probably occurred was that the Sigma values and the co-variances between the scrips was such that we couldn’t get a proper egg-shaped curve. In any case, the entire exercise took up around 9-10 hrs of our time. Plus the fact that Prowess was not working also did not help us in any way.

Now, the only reason that I’ve bunked the extremely funny DIWE class and amazingly hilarious Prof is that we have a Fin Quiz consisting of numericals from Sessions 1 to 8 and I couldn’t touch Brealey Myers the whole of yesterday. Therefore, much against my natural tendencies, I’ve bunked class and am sitting in my room trying to pick up some bits and pieces from the book for the Quiz which carries a colossal 10% weightage.

Pray for me people……………..Jamster

Dilbert-speak: All work begins as ‘potential work’ and it’s best to stomp it out as soon as you see it coming. Once it becomes ‘actual work’, it’s much harder to kill it. Most ‘potential work’ will die from neglect if you ignore it long enough.


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