This document tries to answer to a frequent question of students and clients: are Finance and Financial Economics the same thing? My answer is NO: I think that they are very different, although the terms are very often confused and many Finance professor positions in many Business Schools have...

The Market Portfolio is not an efficient portfolio. There are many evidences that tell us that: the equal weighted indexes have beaten their market-value weighted indexes for many years, many easy-to-build portfolios (some “smart-beta”, “multifactors”) have beaten market-value weighted...

The recent history of Madera Inc. makes us think about the meaning of shareholders´ equity and net income, and also about the impact of two different strategies on the cash flows and the financial statements of the company.10 issues that may change the net income in 2012 are presented. The...

The net income of a company in a given year is an arbitrary number which depends on several decisions on the accounting of expenses and revenues. By contrast, each cash flow (money going out of the cash of the company into someone's pocket: shareholders, debt owners...) is a single number not...

The income statement and balance sheet of Madera Inc are presented and the meaning of each account is explained in the simplest possible way. The following questions arise: What is the net income? Is it what the shareholders “earn”, what the company “earns”, what someone “earns”?...

We report betas of 1,385 US companies on March 31, 2014, calculated with the S&P500. We calculate 147 betas for each company using monthly, weekly and daily returns and using different intervals: from a year to five years. The average (median) of the difference [maximum beta - minimum beta] was...

Spanish Abstract: El CAPM es un modelo absurdo porque sus hipótesis y sus conclusiones/predicciones son opuestas a la realidad (describen “un mundo” que no es el nuestro). La hipótesis más extravagante es que los inversores tienen expectativas homogéneas (todos esperan la misma...

Spanish Abstract: Se explica la fusión de Caja Cantabria, Asturias y Extremadura para formar Liberbank. Se centra la atención en los propietarios de preferentes y bonos subordinados de las 3 Cajas. No fueron tratados como preferentistas y fueron expropiados mientras que los accionistas...

Spanish Abstract: Se explica la fusión de Caja Cantabria, Asturias y Extremadura para formar Liberbank.Se centra la atención en los propietarios de preferentes de Caja Cantabria y se plantean varias preguntas. ¿Cuál es el valor de la acción de Liberbank más representativo después del...