Charles Higgins has taught finance at the College of Business Administration since 1982. Prior to joining the faculty, Higgins taught at Claremont Graduate School, the University of Redlands and Mount St. Mary’s College. He is an investment practitioner, has received the Faculty Member of the Year award twice and is a member of Beta Gamma Sigma.
Claremont Graduate University: Ph.D. 1985
USC: MBA 1972
USC: B.A. 1968
Areas of Expertise (5)
Industry Expertise (3)
- Beta Gamma Sigma
Media Appearances (1)
From the Desk of Charles Higgins
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FNCE 3420 Investments
The course examines the sources and demand for investment capital, investment policy, and procedures for the analysis of security evaluation. Students become competent in stock and bond valuation, capital asset pricing, options, portfolio computation, performance evaluation, and foreign exchange. Students become familiar with investment statistics, primary and secondary markets, tax consequences, retirement planning, market efficiency, macroeconomics, and financial statement analysis.
BADM 3010 Analytical Concepts and Methods for Business
A required course for all business minors.
In the consideration to save more money, whether for retirement or say for travel, many focus on the less important activities and ignore some of the more important ones.
The article focuses on errors that are not corrected by spell checkers in writing programs and communication devices. It is said that spell checkers may change a written word to an unintended one, as well as may provide autocompletion. A list of words that spell checkers and auto completion programs may confuse is provided. Several words in which writing programs can do little to correct notational styles are also listed.
PEG is a newer investment ratio measure of a security’s PE ratio divided by the firm’s growth rate as a percentage. It is examined and contrasted with other investment valuation measures. PEG is shown to be problematic in terms of its units of measure, in what it purports to appropriately determine, and it is non monotonic for relatively profitable firms and is only slightly indicative of correct security selection for relatively unprofitable firms.
Many references to travel safety, especially in regards to aviation, often refer to fatalities per passenger mile or kilometer. It will be argued here that a better
measure for transportation safety analysis would be to
measure fatalities per passenger hour instead of per passenger mile or kilometer.
While options do generally demonstrate an increase in prices as time increases, an annualized return of their excess premiums exhibit other characteristics including a lower return on options farther out of the money, that as the exercise price is farther out of the money that the expiration with the greatest annualized return is longer in time, and more interestingly that for underlying securities having larger standard deviations the greatest annualized option returns are found with options having shorter expirations.
The net present value of any loan at is own discount rate is shown to be zero in both pre tax and after tax worlds. This allows separation from any investment net present value analysis. Further, it simplifies the analysis and it is argued is appropriate even in weighted average cost of capital scenarios wherein the cost of capital equal to its own after tax discount rate and remains a zero in terms of its own net present value.
This paper brings together various topics in finance—the Capital Asset Pricing Model, Portfolio Theory, the empirical evidence, and the Efficient Market Hypothesis—to address whether individual security selection—Stock Picking—is or is not a meritorious venture.
For individuals filing income taxes in the United States, an option to deduct payments for traditional Individual Retirements Arrangements (IRAs) often exists. Note that an IRA account is not a repetitive misnomer although many refer to an IRA instead as an Individual Retirement Account.
We all find number and letter codes around us. Many of these are both relevant and often easy to decode. Included herein are those most of us encounter: airport/ airline/airplane codes, alphabets, bonds, Braille, broadcast call letters, radio AM/FM, television, checks, corporations, credit cards, dates, highways, internet, license plates, measures, money, numbers, postal codes, postage stamps, railroads/trains, ships/boats, Social Security, stocks, telephone, temperature, time, and universal product codes.
For those with expectations of a normal longevity, electing to collect Social Security benefits at or after age 66 is currently recognized as appropriate. However, the question of postponing starting payments after the age of 66 is more problematic. This article will show that discounting the various payment elections becomes moot after a 6 percent discount rate.
Options are bought to hedge (insure) or to speculate on securities. This article examines instead the sale of options in a conservative approach (in lieu of limit orders) and in an aggressive approach (in lieu of margin interest expense).