A while ago I got two ‘outflows’ from my closed friends about their romantic story. The stories has similar plot about the beast and the beautiful. The beast here is not only on my friends’ face, but also their financial condition. So as the beautiful. However, the ‘beautiful’ species here is little bit different. The first beautiful is the heredity of the legislator in this republic, the second one is the heredity of one of the biggest furniture entrepreneur in this republic.
The big deal is the princes above don’t know what to do to reach their dream. Every night, they dream their respective woman. It seems like they just have a little bit chance since they don’t have similar value with their dreams. As you know that, the dating in Indonesia can be analogized as supply-demand law in classical economics. Here, I don’t wanna give an obvious solution for them all. I’m not a Don Juan that can vanquish all the women in the world. I just wanna share my unique idea about choosing the women love by using CAPM
Someday, my friend used a CAPM or Capital Assets Pricing Model logic to identify corruption activities in Indonesia. There’s a will, there’s a way. From the CAPM equation, we can describe the difficulties about getting the woman’s love. We have to calculate the risk of the sacrifice.
Firstly, we have to analogize the love pursuit into investing activities. If we wanna pursue the woman’s love, we have to sacrifice something. The sacrifice can be formed time, energy, thought, and money. Suppose that all of that sacrifices is investing activities. So, what about the relationship between them and CAPM? Let’s talk about it step by step.
- Investment Instrument. The woman we pursue can be analogized as a place where we invest. We have many choices. Are we like the ‘tomboy’ women like the football players, motherhood women like the Ψ’03 student, fashionable, cute and chubby like the Ψ ’06 student, speaking english like Cinta Laura, or the perfect one like Gita Gutawa? They have respective risks. Analogize them into investment instrument. What should we take, stocks, bonds, Indonesian treasury bills aka Sertifikat Bank Indonesia, or a Junk Bond?
- The next element is required rate of return. What will you get after you can vanquish her? car, motor, free pulse, free voucher at Hanamasa, free ticket to Europe, kiss, virginity, or a piece of letter typed ‘You Haven’t Success Yet, Just Try Once More?’ If you get the last thing, may be you gotta be patient and looking back on your mirror at once. The return can be divided into two categories:
- Market Return. We talk about anything woman will give to their man generally. Is her gift is less worth from common people gift for their couple?
- Risk-free Return. We have to compare something we got against something people got when they can get their love without risk. I’ll describe the risk in the next section. The risk free condition is a condition where the target has loved us first. You can create this condition by asking Mama Laurent or Ki Joko Bodo right now.
- The Risk. It’s a potential risk you’ll get when you pursue your love. Every woman pursuit has different risk depend on their condition and characteristics.
That’s the element for pursuing the love. Suppose that the risk-free rate is Rf, market return is E(Rm), and systematic risk is β (beta). So, the ideal expected return E(Ri) expressed in the equation below :
When beta is bigger, it means that the women is risky or there a big chance for the woman to reject your proposal. The equation above can be expressed as the graphic below:
The red lineis called security market line (SML). So, when you expect something from her and your expected return is below the line, just leave her, she just make you get some losses. We probably can create Rf, however in the world the risk is always on, even it just little bit. Therefore, the sacrifice is have to present to the target since before we kiss the beautiful princess, we gotta kiss the frogs beside her.
Oh, I almost forgot. The research above will be valid just for single investment alias pursuing for one love only. If you wanna invest in portfolio form or pursuing many women at once, you can use the Markowitz concept in here
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