Chapter 388: Homework

A luxurious Lincoln Town Car limousine was driving down Wharton Street. Zhou Ming, Chen Shuye, Li Yang, and Edward, three students from the finance class, were all sitting in the car. They were just passing the Chaotian Ti Building, where all the students from the finance class were waiting.

'Teacher, according to Lin's operation, Wharton and Brooke Investment have both been merged into Jinming Fund, and the company's office is still in the Sky Ladder Building.'

On the way, Chen Shu kept reporting to Zhou Ming about the company, although they had already reported to Zhou Ming when he occasionally called back called, they had already reported to him, but now that they were seeing him in person, they still felt the need to report again. The title 'Lin Niang' naturally referred to Lin Muqing, who knew that Zhou Ming was the homeroom teacher of these students and had asked them to call her sister too.

After about ten minutes, Ming and the others arrived at the Sky Ladder Building. Although Ming had not given advance notice, when they got in the elevator and went up, they were greeted by their classmates from the finance class at the door. 'Hello, teacher' and "welcome back, teacher" could be heard everywhere. It was obvious that they were just as excited and happy to see Zhou Ming as Chen Shu and the others were.

'Hello, everyone. I don't think you've eaten yet, have you? But it's getting late, so let's go downstairs to the Rock Café. You're all your teacher's treasures, and I'd be a sinner if you got hungry!'

Zhou Ming joked, and then, amid laughter and merriment, he went downstairs to the Rock Café with his classmates.

This is the self-operated restaurant in the Sky Tower building. Usually, it would have closed at this time of day, but because Zhou Ming made a last-minute reservation today and gave a generous tip, the restaurant owner specially kept the restaurant open for Zhou Ming.

'Mr Zhou Ming is very welcome to dine here. Our chefs have not gone home to rest and are waiting to serve you at any time!'

The restaurant manager was waiting for Zhou Ming at the door. Since he would receive an extra commission for this private booking, the restaurant manager naturally treated Zhou Ming very politely.

After they had taken their seats in the restaurant and the dishes had been served, Zhou Ming stood up and said, 'Classmates, your homeroom teacher is back!'

With these words, there was an instant outburst of cheering in the restaurant, which completely confused Edward, who had come along. He felt that it made no sense, wasn't Ming just a class teacher? How did it turn out to be like the return of a king?

When the cheering died down, Ming continued, 'Although I've been away from Brighton for a long time, I hope that none of you has fallen behind in your studies . You are all carefully selected students in the finance class. If I find out that you are slacking, I will never let you off the hook!'

In response to Zhou Ming's words, class president Chen Shu first replied, 'Don't worry, teacher, we haven't slacked off for a moment. We have been studying hard every day at Harvard. also completed some investment models that you had asked us to calculate before you left. We have also started entering these investment models into the stock and futures markets, and have so far generated more than 100,000 US dollars in revenue!'

Li Yang said, 'Teacher, and your campus convenience store project, we have now also received the first round of financing, and have opened a store next door at MIT! And through the convenience store project, we have also recruited many very talented math talents from MIT!'

After them, other students also spoke to Zhou Ming about their achievements over the past six months.

In fact, he was not surprised by their

results (the end of this chapter, please turn the page). After all, these were the country's carefully selected geniuses, and it was not uncommon for them to achieve great heights with their abilities. Zhou Ming is afraid of the story of 'Shang Zhongyong', in which excessive talent caused him to lose his motivation to progress. Especially as he has not been here for the past six months, if they really slack off, then he will be to blame.

Fortunately, these students are all very capable, which also reassured Zhou Ming. Perhaps in the near future, they will all be his greatest help.

Zhou Ming felt that it was good, but these reports made Edward speechless. Because no matter how you listen to the content of these reports, they should be reports made by senior investors in some large investment banks. He can hardly imagine that they are really just a group of students still in school. He had only known that Ming Zhou had brought such a finance class from the mainland, but had not investigated it carefully enough to realise how impressive it was!

After a lot of arguing, Zhou Ming still took them out to dinner first. After all, it was already 9 pm, and they were hungry anyway.

While eating, Zhou Ming asked Chen Shu, 'You should all be aware of the recent British pound attacks. They were the work of hedge funds. is to take advantage of the weak domestic economy to sell the pound and force it to depreciate, thereby creating profits.'

Chow paused before continuing: 'Now, we can see that this is indeed the case in hindsight, and this method of operation is also extremely risky, because if if the UK had been more assertive or if other European countries had helped the UK, then the investment would have failed. But did you know that hedge funds were actually a very safe form of investment in the first place?

Chen Shuye and Li Yang were both surprised by this, because from this one attack on the pound, it looked like a big speculative move, so how could it be a safe investment?

Zhou Ming then explained: 'The so-called hedging in hedge funds actually refers to an investment behaviour that involves both long and short positions. Since we have investments in both long and short positions, we will get a return regardless of future market changes.'

Li Yang, who is outspoken, said first, 'Teacher, according to what you said, theoretically hedge funds can achieve this investment result, but the problem is that the returns from this investment method are too small. It is also because two-way investments are made under the premise of uncertain market trends, which will result in a large degree of investment waste and are unnecessary.'

Zhou Ming was very satisfied with Li Yang's analysis: 'That's right, so generally hedge funds will use financial leverage, using a very small amount of capital to amplify the amount of the market they want to manipulate through financial leverage. This is like the margin in the futures market, which maximises their returns.'

Zhou Ming explained, Chen Shuye and Li Yang finally understood, because in the futures market, the futures contracts generally used for trading do not have to be paid in full because they have not yet reached the delivery date, so the full amount is not paid, but only 10% of the deposit is required. In other words, with an investment of 100 US dollars, one can leverage a market value of 1,000 US dollars and obtain a higher return than the 100 US dollars invested.

Of course, as the saying goes, the greater the return, the greater the risk. Once a loss occurs, the loss in the deposit will also increase exponentially.

'Therefore So the hedge fund model is your next stage of the task.' Zhou Ming gave Chen Shu and the others their homework.

After dinner, Zhou Ming let the finance students go back to school first. After all, they all still had classes tomorrow

(This This chapter is incomplete, please turn the page) have to go to school tomorrow. They are all such good students, and Zhou Ming doesn't want to ruin them. As for Zhou Ming himself, he went back to the Candini Investment Bank Building with Edward.

In the car Edward asked Ming curiously, 'If I remember correctly, your students are only in their second year now. Is it really okay to expose them to such a complicated thing as hedge funds?'

Ming shrugged. 'Is there really a problem? Haven't I already instructed George Soros to hedge against the British pound? I believe that after the incident with the pound, hedge funds will have a greater impact around the world in the next few years, so it is necessary to let them understand the operation of such funds in advance.'

'I know that this may be too much for them, but as you know, Governor, my country started late in the financial sector, so in order to catch up with the rest of the world and minimise the country's losses in this area, we have no choice but to make sacrifices. Zhou Ming said, 'But my students are all elites carefully selected by the country, and I have great confidence in their abilities.'

Edward Edward asked again, 'Mr. Zhou Ming, as the homeroom teacher of this finance class, do you plan to train them all to become people like you?'

Zhou Ming smiled slightly and said, 'What do you think, Mr. Governor?'

At Zhou Ming's rhetorical question made Edward gasp. He didn't know what to say. If all the students in the finance class really became people like Zhou Ming, even if they were just a little worse than him, it would be enough to change the whole world.

This Edward didn't want to think about the consequences, and it wasn't something he could control. After half an hour, they returned to the Kenney Investment Bank building and went back to their respective lounges to rest.

Time came the next morning. As he had rested for a long time the previous day, Zhou Ming got up very early. As he walked over to the bed and opened the curtains, he saw the situation below and understood why Edward insisted on living here.

'You damned liars! You promised the most lucrative returns and the lowest risks for your investments, but in reality it was all the most outrageous deception! what a despicable thing, you damned scoundrels, you must give us back our money, we will not believe any more of your explanations, your words have no legal significance! God will punish you!'

Many people gathered at the entrance to the Kenndy Investment Bank building, holding banners and signs. A white man wearing a turban was at the front, holding a loudspeaker and shouting while the others shouted back things like 'Kendini fraudsters' and 'Kendini pay back'.

At this time, Zhou Ming had already walked out of his own lounge and was standing with Edward in the upstairs office, watching it all.

'Since ever since that failed investment, these people have been protesting here every day. We've called the police to remove them, but it's no use. They're always there, guarding the front and side entrances. Even the employees working at the investment bank have to be careful when they go in and out. Now they're all transported by company-hired buses. Edward told Ming Zhou, 'We didn't see them last night because they go home to rest at night. They're only here during the day, and it's the busiest in the morning.'

Ming Zhou smiled slightly and nodded: 'They've already gathered at the door to yell at you, it seems they're determined to take you and Candini Investment Bank to task!'