In this article, Youssef LOURAOUI (Bayes Business School, MSc. Energy, Trade & Finance, 2021-2022) elaborates on the concept of alpha, one of the fundamental parameters for portfolio performance measure. This article is structured as follows: we introduce the concept of alpha in asset management. Next, we present some interesting academic findings on the alpha. We … Read more
In this article, Youssef LOURAOUI (Bayes Business School, MSc. Energy, Trade & Finance, 2021-2022) presents the Security Market Line (SML), a key concept in asset pricing derived from the Capital Asset Pricing Model (CAPM). This article is structured as follows: we first introduce the concept of Security Market Line (SML). We then present the mathematical … Read more
In this article, Youssef LOURAOUI (Bayes Business School, MSc. Energy, Trade & Finance, 2021-2022) presents the Capital Market Line (CML), a key concept in asset pricing derived from the Capital Asset Pricing Model (CAPM). This article is structured as follows: we first introduce the concept. We then illustrate how to estimate the capital market line … Read more
In this article, Youssef LOURAOUI (Bayes Business School, MSc. Energy, Trade & Finance, 2021-2022) elaborates on the concept of active investing, which is a core investment strategy that relies heavily on market timing and stock picking as the two main drivers of financial performance. This article is structured as follows: we introduce the concept of … Read more
The IRR function in Excel In this article, Léopoldine FOUQUES (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) presents the IRR function in Excel to compute the internal rate of return of a series of cash flows. About Excel Excel is by far the most used financial modeling tool across the world to build … Read more
Jeremy PAULEN In this article, Jérémy PAULEN (ESSEC Business School, Global Bachelor of Business Administration, 2019-2023) explains everything about the IRR function in Excel, which is used to compute the internal rate of return of a series of cash flow to evaluate the financial performance of an investment in relative terms. What is the IRR? … Read more
Technical Analysis In this article, Shruti Chand (ESSEC Business School, Master in Management, 2020-2022) elaborates on the concept of technical analysis. This read will help you get started with understanding technical analysis and how it is practiced in today’s world. What is technical analysis? Technical analysis is a tool used to predict future price movements and trends of security. This … Read more
My experience of Account Manager in the office real estate market in Paris In this article, Clément KEFALAS (ESSEC Business School, Global Bachelor of Business Administration, 2021) shares his working experience as an Account Manager at Ubiq. Ubiq: A company disrupting the market Ubiq was founded in 2012. At that time, it was known as … Read more
A New Angle in M&A E-Commerce In this article, Antoine PERUSAT (ESSEC Business School, Global Bachelor of Business Administration, 2019-2023) shares his working experience as an M&A Analyst at a start-Up. The Company Last summer, I worked for two months in London at a company specializing in Venture Capital (VC) of digital assets in the … Read more
The Warren Buffett Indicator In this article, Youssef EL QAMCAOUI (ESSEC Business School, Master in Strategy & Management of International Business (SMIB), 2020-2021) discusses the Warren Buffett Indicator. It is no secret that stock prices are all-time highs and people have been asking the important question: are we in a stock market bubble? According to … Read more
In this article, Youssef LOURAOUI (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) presents the MSCI Factor Indexes. MSCI is one of the most prominent actors in the indexing business, with approximately 236 billion dollars in assets benchmarked to the MSCI factor indexes. The structure of this post is as follows: we begin by … Read more
In this article, Anant JAIN (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) talks about Carbon Disclosure Rating. Introduction Carbon disclosure rating (CDR) is a medium to measure the environment sustainability of a company. It is calculated based on the voluntarily disclosure by a company itself. This rating is useful for an … Read more
In this article, Anant JAIN (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) talks about Green Investments. Introduction Green investments, also known as eco investments, are investment activities that target companies focusing on environmentally conscious business projects or practices. This includes, but is not limited to, protection of natural resources, production of … Read more
In this article, Pierre BERGES (ESSEC Business School, Master in Strategy & Management of International Business (SMIB), 2020-2021) shares with us his experience in the Finance Department at Bouygues (a French firm included in the CAC40 index). About Bouygues Born in 1952 under the impulsion of Francis Bouygues and now managed by his son Martin, … Read more
In this article, Youssef LOURAOUI (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) presents the origin of factor investing. A factor is defined as a persistent driver that helps explain assets’ long-term risk and return properties across asset classes. This article is structured as follows: we begin by presenting Markowitz’s Modern Portfolio Theory (MPT) … Read more
In this article, Jayati WALIA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the Capital Asset Pricing Model (CAPM). Introduction The Capital Asset Pricing Model (CAPM) is a widely used metrics for the financial analysis of the performance of stocks. It shows the relationship between the expected return and the systematic … Read more
In this article, Jayati WALIA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) explains the Brownian motion and its applications in finance to model asset prices like stocks traded in financial markets. Introduction Stock price movements form a random pattern. The prices fluctuate everyday resulting from market forces like supply and demand, … Read more
In this article, Youssef LOURAOUI (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) presents the growth factor, which is based on a risk factor that aims to get exposure to firms with high growth potential based on a variety of parameters such as historical profits, sales, and expected earnings. This article is structured as … Read more
In this article, Youssef LOURAOUI (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) presents the quality factor, which is based on a risk factor that aims to get exposure to businesses with long-term business plans and competitive advantages. This article is structured as follows: we begin by defining the quality factor and reviewing academic … Read more
In this article, Youssef LOURAOUI (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) presents the yield factor, which is based on a risk factor that aims to get exposure to companies that are regarded to be inexpensive and have a history of consistent and rising dividends. This article is structured as follows: we … Read more