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Overheard at Booth

Shih, Jennifer

Issue date: 5/14/09 Section: Page Two
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Overheard in Class:
Professor: "If we take the money back, we would have to screw Grandma. That's a technical term."

Prof in class talking about social security issues -

Prof: "Why is social security such a big problem? The way it was setup, we gave all this money to grandma in expectation that she will live for half an year more after retirement. But now grandma is living at least a decade more in expectation. Damn grandma won't die!"

Finance professor after asking three students for their sensitivity analysis (none of whom had done it.)

"Come on guys, you all studied French and Fama, right? We know the CAPM is bullsh*t. We don't use it because we believe it, but because everyone else uses it. You have to do the sensitivity analysis!"
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