This is the serious answer. I don’t believe in the REA but I think it would be funny if they existed and so long as you didn’t break their rules, then they won’t kill you. That’s fine with me, im perfectly happy. But there’s at least one person on the planet who does!
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i wanna make a joke about how that’s what they all say but i feel really bad about joking about this so take this post instead
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i doubt you should make that joke yes
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awww autistic baby headpats how arorable ill take care of you
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autism does not necessarily mean someone is aromantic
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also is it “autistic baby, headpats” or “autistic, baby headpats”
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the first
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me using the personal bank account in hypxiel skyblock as the investment fund
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Create a market portfolio.
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finance majors upon seeing a game with an economy
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This is the fun part about understanding how an economy works.
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magnus protocol
is teddy recording from his phone in 18 the audios horrid
i can buy ~144000 cobblestone using ~125k coins
144000 cobblestone = 900 enchanted cobblestone
enchanted cobblestone sells for ~300 a pop rn it seems
thus, i can make a 145k profit this way
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i love economy games despite playing them the most boring way possible by selling stuff i bought for more that i paid
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i can do all of this in roughly 20min, depending on how fast the orders take to fill
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this is not that guy exclusive lena’s audio is horrid aswell
For context, a market portfolio is basically, “All stocks on the market, with a weight proportional to their market size”.
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so, i can make an ~115% profit (though im not sure if im calculating it right. total sell value was 270k) in about 20 minutes
compare: lapis
i can get lapis for roughly 5 coins a pop.
assuming we buy the same amount, i can buy 144000 lapis for 720k
enchanted lapis sells for about 700 coins a pop
900 enchanted lapis therefore sells for 630k. It might sell for as high as 800 a pop but
this is a negative turn and even at 800 it can’t compare with literally doubling the money
all of the other materials i could profit off of are utilized in the recipie im trying to get to, so i think cobblestone is my best bet
Hypixel skyblock is the best way to teach finance
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Gonna just throw ya’ll in the deep end a bit because I just got done studying tonight for my Corporate Finance final.
Finance is about risk and return. The higher the risk, the greater the return must be to justify this risk.
We use U.S. Treasury bills as a representation of riskless debt: the U.S. government is guaranteed to pay us back. This is denoted as r_f.
We file the return on the market as r_m. The market has risk and thus drives higher returns than riskless debt. That difference is called the market risk premium (r_m - r_f).
For simplicity, we say that every stock has a beta such that the stock’s return can be expressed as: r_f + Beta * (r_m - r_f) + Alpha (we’ll get to alpha later).
In essence, beta is a form of quantifying a stock’s risk relative to the market. Stocks with a low beta are safer (a beta of 0 is riskless debt) but drive lower returns, and stocks with a high beta are riskier but drive higher returns.
For almost everyone, just investing in an optimal portfolio (a portfolio that would drive the highest return at a set level of risk; the market portfolio is one) is strong enough. However, if everyone in the market does this, the value of the underlying companies would change past what is priced into the stock. This would add a constant - alpha - to the stock’s price that represent the difference between the company’s original market value and its current true value, and there would be financial incentive to capture it.
In a perfectly efficient market, every stock’s alpha is zero. However, because our market has tiny inefficiencies, tiny alphas exist, and several thousand traders, both large and small, work to capture that alpha.
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