Category Excel

The Mathematics of Leverage

I think this is one of the most important lessons of the course. This chart is clickable.  The starting base case is an asset that pays a 10% yield, that is purchased with 75% debt at 8%.

A Good Way To Show Sensitivities

Here is an example of a good way to show sensitivites. Notice that the person that put this together: 1. put the inputs on the left, 2. and the outputs on the right. 3. The active case is at the very top 4. The base case is just below the active case 5. At the very […]

How to Load Excel’s “Analysis ToolPak”

This is the add-in necessary for running regressions.  So, if you want to try to do the ski resort ranking assingment, you’ll need to download and install this.  There are other Excel based software add-ins that will allow you to do multiple regressions from within Excel, but this one has been around for about 20 […]

Excel Function Dictionary

Here is a link to a very useful Excel Function Dictionary, prepared by Peter Noneley.  Click through and download his workbook. In the workbook, he has prepared nice examples of how to use most of the functions that Excel offers.  Although there are a few newer functions that are not included, this is a very useful document. http://www.xlfdic.com/

On the Concept of The “Good Enuf” Proof

Anyone who has taken trig knows that the cosine squared of an angle plus the sine squared of an angle equals one.  I took trig so long ago that I’ve forgotten why that’s the case, but I’m sure it has something to do with the Pythagorean Theorem, Any true mathematician will give you a nice […]

Best Practices – Spreadsheets

Another link to Stanford. Among the three cases that they discuss, they present ten rules for spreadsheets. I’ve reordered them below, because I think the first five are more important than the next five: More Important Do not use colored text or cell shading Do not merge cells Headers should be in a single row […]

A note on file formats

Excel offers multiple file formats. Pre-2007, all excel files were saved as .xls files. Since 2007, there are a few other options, each with its own cost/benefit. The nice people at AMT Training prepared the below chart.  I’ve shown the first three file types.  There are others, but they are less common. File Formats File extension […]

Spreadsheet Rules

When I first started working at Babcock & Brown, a San Francisco based investment that focused on project and lease financings, one of the analysts shared this document with me.  In this little 2 pager, he captures many of the essential elements of spreadsheeting.  This is important.  Read it four or five times. Historical note: You’ll see that he […]

Basic Excel Training

Here’s a link to a page called “Excel Training Worksheet” was put together by Juice Analytics. Download their “much-delayed Excel training document. It is chock-full of tips, tricks, and exercises to sharpen your Excel skills.” This post references another of their posts, but the link on their page is broken. Here is the link to “Essential Excel Skills…or […]

Resource: ExcelExposure and The University of Reddit

Here’s an additional resource that may be helpful to you as you’re trying to come up to speed with Excel. Benjamin Currier is a Microsoft Excel MVP, which means that he knows a lot.  He runs a site called Excel Exposure, which I like because it has enough material to be useful without so much […]