Unicast

In Finance class today, the market portfolio was discussed. The teacher skipped pretty lightly over the reason why the market portfolio could be used in place of the tangency portfolio in CAPM.

This reminded me of the paper The Significance of the Market Portfolio, Athanasoulis and Shiller (2000). From the paper: "In a simple general equilibrium exchange model of all possible markets to create, a market for shares in the world portfolio would be, by a social welfare criterion, a least important market to create, not a most important market (Theorem 2)."

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"The whole of Lucy's behaviour in the affair, and the prosperity which crowned it, therefore, may be held forth as a most encouraging instance of what an earnest, an unceasing attention to self-interest, however its progress may be apparently obstructed, will do in securing every advantage of fortune, with no other sacrifice than that of time and conscience." On Lucy Steele in Sense and Sensibility, chapter 50.

Posted by Guan Yang at 05:58 PM | Permalink | Comments (0) | TrackBacks (0)

Posted by Guan Yang at 10:29 AM | Permalink | Comments (1)

Bruce Perens: "Currently, MySQL FUDs the GPL a bit to get commercial sales. You don't need their commercial license to use it."

Posted by Guan Yang at 05:21 PM | Permalink | Comments (0)

Pelle: "For international use (but read what I say below), say Bob is in Australia and Mary is in Norway a US Limited Liability Company (LLC) is almost certainly the way to go."

I'd have to disagree with the "almost certainly" conclusion. (Of course, I am neither a lawyer or tax accountant, and I don't think Pelle is either, but who needs professional advice when you can just read amateur blog posts?)

1. LLCs are usually more expensive than corporations. For example the annual fee for a Delaware LLC is $200, while the minimum fee for a Delaware corporation is only $60.
2. The legal and tax status of an LLC in other countries is often unresolved. For example there have been cases where, depending on the LLC operating agreement, US LLC's have been denied applications to open a branch in Denmark. This is mostly because the LLC structure is unknown in Denmark.
3. Each member of the LLC has taxable income in the United States and has therefore to file a US tax return. If they were simply shareholders and do not live in the US, they could get paid wages and dividends without filing a US tax return. (This is the case even if the LLC applies to the IRS to be taxed as a corporation.)

Of course the main benefit from an LLC is tax treatment. Pelle: "I want to deduct all my costs and expenses against my salary." This can be very important, but I'd consider some of the other consequences too.

Posted by Guan Yang at 12:40 PM | Permalink | Comments (0) | TrackBacks (0)

FDIH arrangerer et seminar om Web 2.0 den 4. april 2006 kl. 16:30. Det er gratis for FDIH-medlemmer.

Jeg deltager med en Web 2.0 demo-seance hvor jeg vil prøve at præsentere en række Web 2.0 applikationer, teknikker og teknologier. DEMO!

Der vil også være indlæg fra Thomas, Lars Toftgaard fra Danisco IT, et asynkront oplæg om betydningen for teknologileverandører og Peter Svarre taler om "Web 2.0 - Nørdernes diktatur?"

Posted by Guan Yang at 01:15 PM | Permalink | Comments (0) | TrackBacks (0)

From the Onion: "In the wake of several major lobbying scandals, the Senate Select Committee on Ethics announced Tuesday that it will hold a special series of intensive sessions inside its recently completed 200-room Ethics Mansion."

Posted by Guan Yang at 11:57 PM | Permalink | Comments (0)

I'm sorry that I've been neglecting the blog lately.

School has started again. Right now I'm working on homework for the finance course and on a topic for the BSc degree thesis. The topic will be something along the lines of lifecycle portfolio choice in the presence of idiosyncratic human capital.

Quotation of the day: "We men and women are not made to accept such sacrifices from each other. We are not worthy of them." (Lord Goring in An Ideal Husband.)

Posted by Guan Yang at 02:34 PM | Permalink | Comments (0) | TrackBacks (0)