Thursday, September 21, 2006

Is that a squash or a legume?

Finance Professor: Did anyone do a search for "BETA?"
Student 1: Yeah.
Finance Professor: And?
Student 1: Well, uh, I got too many results. But if I searched for "beta" AND "CAPM" I got about thirty-six results.
Finance Professor: But...how many did you get with just "BETA?"
Student 1: Over two thousand.
Finance Professor: Do I need to say more? Does this prove to you that you will see this term in court?
Student 1: Yeah, but it's a pretty vague word, so those cases probably include a lot of things that have nothing to do with finance.
Finance Professor: There is no other use for the word "beta."
Students giggle nervously.
Student 2: Well, there's the fish. And fraternity cases. And what about rootabeta?

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