₦airaland Forum

lekside44:
i think this guy is not given the respect he is due for just because of his origin. this is somebody who brought about parallel processing processor architecture, the main stream of future microprocessor design. what did they do to our own chike obi, the man who solved fermats last principle. not even the likes of newton, bessel, forrrier, langrange, hammitonian, just to mention a little can solve it. neither was he given the prize tagged to the one who solved it

what has he done after all those inventions he made. His mates are busy discovering new stuff or using their expertise in an organization while he is busy looking for publicity and selling t-shirts on his website

^^ wetin do u

11 April 2010: Highlights of the NPL match between Sunshine Stars and Sharks FC

http://www.supersport.com/video/video5.aspx?play=9658

Yeeeeee !!! so nigeria is this bad. na wa o

There is actually a very simple solution to guard against all this fraud and counter-party risk thing. electronic trading. . .

All transactions are settled online. no need for fiscal delivery

Once you are not meeting certain mark to market margin requirement the system automatically closes your position. . . and everybody is happy 

Or you could even set up automatic stop losses etc . . most electronic trading systems these days have all these anyway

I agree

But if it is that bad then why are people still investing in the stock market ?

why was there a collective downward trend during the crash ?

why were the prices not manipulated to stay overvalued ?

with more foreign investors coming in i think things can only get better not worse ( am an optimist btw)

you mentioned counter party risk which i think is embedded in almost any form of vanilla stock or bond.

how am i sure that if i invested in a 20 yr Federal Government bond that Nigeria will still be existing in 20 yrs time ??

I think first step will be for this to be structured in the OTC market by reputable blue chip companies.

for instance there are already blue chip companies in nigeria utilizing currency forwards to hedge foreign exchange risk in the OTC market.

my suggestion is that for a start it should be used for risk management. . something like portfolio insurance . . 

The company structuring the option will be fully hedged  against the market to ensure  they maintain a market neutral view.

So in essence they don't care if the market goes up or down they are just interested in the premium and the probability that the option might be exercised or not.

Ben-10:
Love doesn't exist.

really ??

goodluck with your search

haha i wonder. what is so special about the hips sef . she wan turn beyounce abi

hahaha lol u don catch am red handed

looks boring

so u berra come london

Votukpa:
An observation though -
Talking about CAPM in Nigeria is kinda annoying, primarily because financial markets in Nigeria are far from perfect - not even to the extent that the model implicitly attempts to reflect developed markets. (an assumption which the CAPM is solidly grounded on). With the volume of insider trading going on in the NSE along with the preponderance of asymmetric information delivery, I am fully convinced that financial market equilibrium will remain elusive in these parts.

No market is perfect anywhere in the world .

Recently some stock brokers in the uk appeared in court for insider trading. it happens everywhere not only in nigeria

Information asymmetry like u mentioned is part of this reason.

This is one of the reasons why investing in stocks is risky business. Stocks are stochastic processes. u can never predict what is going to happen unlike something like a bond for instance

Votukpa:
Therefore, I think its even dumb to teach CAPM and several other financial models (plus traditional portfolio theory) in Nigerian business schools. Moreover adjusting the model to fit the Nigerian model would be useless. All we need it time. Time with institutional development. These models have been developed with underpinnings that strictly apply to developed markets.

The reason why regression analysis is necessary is that it gives you a sense of how the stock has performed historically which helps in aiding your decision process on wether to invest in the stock or not.

CAPM itself is full of assumptions which doesn't hold up in the real world but at least you have a baseline to make sound decisions on . There are many extensions to CAPM by the way that strips out most of these assumptions and this can be adopted to the nigerian environment.

You are right about getting the optimal portfolio though. Its going to be very hard to get a truly optimal portfolio is you can't short sell. something not possible in Nigeria.

Short selling is actually a mechanism that helps in making a market more efficient . . so if the optimization solution is telling you that you need to short sell a stock for instance then you will need to add another constraint against short selling in the problem and this will actually not give u a true optimal portfolio.

Votukpa:
But of course you all knew these already.
Me
P.S WE don't need Black-Scholes either. Greeks are useless. All of them. No core derivatives markets in Nigeria.

Yes all these problems are not new . . . what we need is a new generation of finance professionals to move this industry forward. The old guard need to retire and live the field for us the youths

Derivatives is wonderful for risk management. This can be the first step. . . We can start an OTC market and write options for pension funds or institutional investors for a start. Simple marketing strategy will be that we are selling them this options e.g a put option so that they can buy downside protection. Who wouldn't fall for that ??

Black-scholes and the greeks are core to derivatives pricing. Classic black-scholes is nearly useless though because of all the laboratory assumptions. but the wonderful thing about it is that it can be adopted fairly easily . . so instead of having constant volatility assumed by BS you can have stochastic volatility . . . transaction costs etc . .

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violent:
Buh if i can get sufficient experience in the commodities and Asset Management industry, and sufficient funds, i can have commodity trading prop desk in Nigeria with deal executed on the Brazilian Mercantile and Futures Exchange, trading Biofuels, and Precious Metals, i really don't have to take physical delivery, and if i have to do, i might just manage that using forward freight contracts

yes this is a very good idea. i guess u can even just trade the options or futures on the exchange

Oil trading might also be attractive from a nigerian perspective i think ( . . . looking at all these guys that ship oil out of nigeria . . )

There is a commodities exchange in Nigeria http://www.abujacomex.com/ but i think they only deal in food

tkb417:
@candylips
na SE u dey?

tbaba yes o i dey hole up somewhere around SE .