Bradford86 (8:19:40 PM): basically.
Bradford86 (8:19:48 PM): hmm, thinks
crzyLyna (8:20:04 PM): start from the bottom and work up
Bradford86 (8:20:12 PM): failed corporate finance
crzyLyna (8:20:14 PM): because I feel like stocks might be an in depth conversation
crzyLyna (8:20:19 PM): Oh no, I'm sorry
crzyLyna (8:20:23 PM): Are you going to have to retake it?
Bradford86 (8:20:28 PM): ha, no
crzyLyna (8:21:05 PM): so what's going to happen?
Bradford86 (8:21:07 PM): http://web.ics.purdue.edu/~gbradfor/glen/files/glen/FailPredict.jpg
Bradford86 (8:21:52 PM): well, if you can pass school getting 2 standard deviations below the mean
Bradford86 (8:22:02 PM): i dont have much reason to try.
crzyLyna (8:23:10 PM): So you still passed?
Bradford86 (8:23:58 PM): the class, yes
Bradford86 (8:24:01 PM): kind of.
crzyLyna (8:24:02 PM): Heyyy you got a C
crzyLyna (8:24:23 PM): AND you didn't get the lowest grade on the test
crzyLyna (8:25:41 PM): and for the record: what does MBA school teach you to be impossible that you could solve using simple principles?
Bradford86 (8:25:58 PM): beating the mean
crzyLyna (8:26:15 PM): what do you mean beating the mean
Bradford86 (8:26:31 PM): beating the average
crzyLyna (8:26:47 PM): and then said you could never achieve a return higher than the average?
Bradford86 (8:27:11 PM): i am going to beat the average
crzyLyna (8:27:24 PM): Okay just a pointer or two:
crzyLyna (8:27:43 PM): If you ever want to make it in any sort of finance career, never make anything like what you just sent me public
Bradford86 (8:27:53 PM): i am going to beat the s&p500
Bradford86 (8:27:57 PM): or whatever index you want to watch
crzyLyna (8:28:08 PM): It is possible to be the S&P 500, but you can't do it on a continual basis
crzyLyna (8:28:23 PM): But don't make anything like that public or else you have no chance at getting anywhere
crzyLyna (8:28:40 PM): 1) Don't say you're going to be a millionaire in 10 years
crzyLyna (8:28:46 PM): because it shows you're monetarily focused
crzyLyna (8:28:48 PM): greedy
Bradford86 (8:29:00 PM): it's just a fact.
Bradford86 (8:29:11 PM): youre the first person to see that picture
crzyLyna (8:29:15 PM): 2) Everyone interviewing you or judging you isn't going to like that you don't take MBA finance seriously
crzyLyna (8:29:30 PM): It doesn't refllect well
crzyLyna (8:29:47 PM): 3) You can't apply simple principles to make the impossible possible
crzyLyna (8:29:58 PM): or else the quants running the world right now would have figured it out ages ago
crzyLyna (8:30:49 PM): And corporations DO rationalize buying back more stock as their stock price goes up because they're targeting their leverage ratio
Bradford86 (8:31:00 PM): yes, they are stupid.
crzyLyna (8:31:09 PM): How so?
Bradford86 (8:31:22 PM): they should buy it back when it's low
crzyLyna (8:31:49 PM): 1) Usually corporations don't buy back stock just because it's low
crzyLyna (8:31:55 PM): they need incentive to buy it back
crzyLyna (8:31:56 PM): it's not like bonds
Bradford86 (8:32:19 PM): yep. you are right
Bradford86 (8:32:36 PM): i still say it's stupid.
crzyLyna (8:32:40 PM): Coporations buy stock back when they want to look good or improve something
crzyLyna (8:33:00 PM): they inject stock into the market when they want to deflate current stock value, or increase their own holding of shares
crzyLyna (8:33:09 PM): they buy it back when they want to improve how they look
crzyLyna (8:33:14 PM): including leverage ratios
Bradford86 (8:33:33 PM): any idea what you want to do when you graduate?
crzyLyna (8:33:53 PM): Risk management
crzyLyna (8:34:53 PM): And the whole market efficiency theory: Not everyone believes it and you're not the first one to speak out against it
crzyLyna (8:35:02 PM): There are even different levels of market efficiency
crzyLyna (8:35:09 PM): Your opinion is your opinion
crzyLyna (8:35:16 PM): a lof ot people believe otherwise
crzyLyna (8:35:30 PM): so if you want to speak out against it, you really have to form your opinions in a strong manner
Bradford86 (8:35:48 PM): i'll stick to.. it's a hypothesis that i proved wrong.
crzyLyna (8:36:12 PM): How much research have you really done into market efficiency?
crzyLyna (8:36:30 PM): Because I do believe the market (under market efficiency) has the ability to drastically correct itself if something goes wrong
Bradford86 (8:37:02 PM): probably.
crzyLyna (8:37:17 PM): No, it does
crzyLyna (8:37:39 PM): You really have to understand everything before you make the statement that you "prove it was wrong"
crzyLyna (8:37:45 PM): proof is a VERY strong concept
crzyLyna (8:37:59 PM): and finding one exception to the rule (or even five) isn't good enough
Bradford86 (8:38:08 PM): well. a hypothesis is proved wrong when you find 1 counterexample
crzyLyna (8:38:08 PM): Its the efficient market HYPOTHESIS
crzyLyna (8:38:17 PM): not the efficient market FACT
crzyLyna (8:38:30 PM): Its a general way to explain general market behaviour
crzyLyna (8:38:36 PM): and it most times, it does hold very well
crzyLyna (8:39:28 PM): But if you're using your logic with 1 counterexample
crzyLyna (8:39:36 PM): then you can disprove EVERYTHING
crzyLyna (8:40:06 PM): There is NO way humanly possible (or even technologically possible) to explain the markets to a T
Bradford86 (8:40:24 PM): what about the theory of relativity?
crzyLyna (8:40:25 PM): And if there was, someone would have figured it out by now
Bradford86 (8:40:30 PM): i can't prove that wrong
crzyLyna (8:40:46 PM): Oh good lord don't start with me on silly shit like that
crzyLyna (8:40:54 PM): Everything in finance for the most part
Bradford86 (8:41:05 PM): we dont agree on finance.
Bradford86 (8:41:08 PM): this is why i failed
crzyLyna (8:41:16 PM): You and the rest of the world don't agree on finance
Bradford86 (8:41:44 PM): i only hope that when i'm beating the market year after year...
Bradford86 (8:41:54 PM): you see light in my arguments
crzyLyna (8:42:01 PM): What were your returns over the past year?
Bradford86 (8:42:08 PM): -75%
crzyLyna (8:42:22 PM): Then you have absolutly NO place to talk until you start beating the market
crzyLyna (8:42:37 PM): You more than DOUBLED the losses incurred by the S&P 500
crzyLyna (8:42:51 PM): which obviously means you're not heading in the right direction
crzyLyna (8:43:10 PM): What they teach you in your MBA program is generally how the markets do operate
crzyLyna (8:43:23 PM): and if you can't understand that and agree with it, then there's no way you could beat the markets
Bradford86 (8:44:20 PM): i disagree.
Bradford86 (8:44:32 PM): my mentor annualized 25% up till this crash
crzyLyna (8:44:34 PM): Really, so what are you doing differently? 
Bradford86 (8:44:36 PM): now he's annualizing 15%
Bradford86 (8:44:44 PM): my grand father annualized 20% for 25 years
Bradford86 (8:45:06 PM): i dont care about what math proves
Bradford86 (8:45:09 PM): i care about what works
Bradford86 (8:45:16 PM): and math is wrong if you give it the wrong assumptions
crzyLyna (8:45:25 PM): unless I see statements telling me that both did in fact BEAT the market every single year
crzyLyna (8:45:29 PM): then that's hobwash
crzyLyna (8:46:29 PM): See, but you really aren't doing anything that works right now
Bradford86 (8:46:37 PM): that's not true.
crzyLyna (8:46:38 PM): don't use options pricing models unless you know how to correctly use them
Bradford86 (8:46:48 PM): that's also not true.
Bradford86 (8:47:01 PM): options are just a play on stock prices
Bradford86 (8:47:12 PM): they are a catalyst or insurance
crzyLyna (8:47:19 PM): Last time I talked to you you were randomly assessing the risk metric
crzyLyna (8:47:39 PM): You have no place to lecture me about any sort of derivative, so don't start
crzyLyna (8:47:46 PM): my education is based around derivatives pricing
Bradford86 (8:47:55 PM): risk randomly assigned by market cap and distance from where you live is better than risk assigned by covariance
crzyLyna (8:48:07 PM): mmmmm
crzyLyna (8:48:24 PM): but you have to remember you're not the one who is determining the risk levels or the prices of the actual derivatives
crzyLyna (8:48:32 PM): so if you ever plan on making a profit from price changes
Bradford86 (8:48:32 PM): there is a market maker
Bradford86 (8:48:36 PM): sitting in the CBOE doing it
Bradford86 (8:48:48 PM): pricing out 8000 derivatives at a time
crzyLyna (8:48:53 PM): you need to understand how THEY got the prices in the first place
Bradford86 (8:49:11 PM): it's a function of expected future volatility, random walk, and time
crzyLyna (8:49:22 PM): yes, a stochastic process I know
Bradford86 (8:49:47 PM): and then there's the whole horse betting simulation where the house always wins
Bradford86 (8:50:04 PM): where the buyers and sellers are the ones actually pricing the options
crzyLyna (8:50:20 PM): You know what, I'm not going to argue with you on this at all
crzyLyna (8:50:39 PM): Because until you come back to me and say that you've beat the market continuously year over year
crzyLyna (8:50:53 PM): then your rationale means nothing
crzyLyna (8:51:57 PM): And if you continue to talk to the way you do over the internet, and produce -75% returns
crzyLyna (8:52:01 PM): then you end up looking like a complete fool
crzyLyna (8:53:22 PM): And how are you going to find people to invest
crzyLyna (8:53:27 PM): with a track record like that