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Hello, David. It's been a long time since posting on this board. I have a quick question about the P/E ratio. If you break down the P/E ratio derivation algebraically, the payout ratio is on the numerator, effectively making it as a positive factor with relation to the P/E ratio. But...

Thank you for your thorough explanation. I've got the point clear. Sincerely, Donald.

Hi, David. I have a question regarding foreign exchange risk. In a book dealing with foreign exchange risk it says, “Companies can reduce their exposure to the exchange rate component of risk by borrowing in the local currency to fund projects.” However, I don’t really get it. I think even...

Hi, David. I have a question regarding kurtosis and skewness. In investment terms skewness is supposed to mean “bias toward positive or negative return”. Kurtosis captures the tendency of the price of this investment to jump either direction. In FRM, I’ve encountered EVT, and its objective...