“I analogize [private equity] to sex...You realize there were certain things you shouldn’t do, but the urge is there and you can’t resist.”[8]
- David M. Rubenstein speaking at Harvard Business School about the buyout bubble
elegant, intelligent, modern, irreverent
“I analogize [private equity] to sex...You realize there were certain things you shouldn’t do, but the urge is there and you can’t resist.”[8]
- David M. Rubenstein speaking at Harvard Business School about the buyout bubble
Expected Regret
Expected Regret is defined as the average portfolio underperformance comparing to a fixed target or some benchmark portfolio.
There is a close relationship between Expected Regret and Conditional VaR (=expected loss exceeding an alpha-Value-At-Risk, i.e. the mean of the worst (1-alpha)*100% losses in a specified time period).
Mr. Prince departed from his prepared testimony by saying "I'm sorry" three times that the crisis had such a "devastating" impact on the economy, millions of Americans "lost their homes," and "our management team, starting with me," didn't foresee the "unprecedented market collapse."
Still, Bill Thomas, a Republican former congressman from California who is vice chairman of the panel, which must produce a report on its findings by Dec. 15, compared the former CEO to "a lemming" because of his reluctance to rein in risk-taking as late as mid-2007.
The comment came after Mr. Prince tried to explain his infamous declaration in mid-2007 that "as long as the music is playing, you've got to get up and dance. We're still dancing." Mr. Prince was referring to the dangers of leveraged lending for private-equity buyouts, but Mr. Thomas responded: "You weren't going to be the lemming that stopped and said: 'I don't want to keep walking."'
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For example, who would have thought that philosophy majors in mid-career would earn more than information technology majors in mid-career? This is probably because students who major in philosophy are more likely to go to elite schools, whereas students who major in I.T. are likely to go to pre-professional-type schools that don't even offer philosophy as a major, Mr. Lee says. So it's not really the choice of major that's making the difference -- it's the school.
"A student's choice of major has a huge impact mid-career, enormous," says Mr. Lee. "But you generally don't see people majoring in philosophy" -- or other "soft" majors, he says -- "except in top schools."
That said, here are the bottom 10 majors by mid-career salary:
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Dartmouth College | Ivy League | $58,200 | $129,000 |
Massachusetts Institute of Technology (MIT) | Engineering | $71,100 | $126,000 |
Harvard University | Ivy League | $60,000 | $126,000 |
Harvey Mudd College | Engineering | $71,000 | $125,000 |
Stanford University | Engineering | $67,500 | $124,000 |
Princeton University | Ivy League | $65,000 | $124,000 |
Colgate University | Liberal Arts | $51,900 | $122,000 |
University of Notre Dame | Private | $55,300 | $121,000 |
Yale University | Ivy League | $56,000 | $120,000 |
University of Pennsylvania | Ivy League | $60,400 | $118,000 |
Rensselaer Polytechnic Institute (RPI) | Engineering | $62,500 | $116,000 |
Duke University | Private | $56,800 | $116,000 |
Bucknell University | Engineering | $56,100 | $116,000 |
Bucknell University | Liberal Arts | $56,100 | $116,000 |
California Institute of Technology (CIT) | Engineering | $69,700 | $115,000 |
Polytechnic University of New York, Brooklyn | Engineering | $62,700 | $114,000 |
Lehigh University | Engineering | $57,400 | $114,000 |
Carnegie Mellon University (CMU) | Engineering | $65,300 | $113,000 |
University of California, Berkeley | Engineering | $57,100 | $112,000 |
University of California, Berkeley | State Schools | $57,100 | $112,000 |
Santa Clara University | Private | $58,000 | $111,000 |
Georgetown University | Private | $57,000 | $111,000 |
Worcester Polytechnic Institute (WPI) | Engineering | $61,100 | $110,000 |
Swarthmore College | Liberal Arts | $55,900 | $110,000 |
Colorado School of Mines | Engineering | $60,000 | $109,000 |
Colorado School of Mines | State Schools | $60,000 | $109,000 |
Manhattan College | Private | $56,100 | $109,000 |
Amherst College | Liberal Arts | $54,900 | $109,000 |
Haverford College | Liberal Arts | $46,200 | $109,000 |
Brown University | Ivy League | $52,300 | $107,000 |
University Of Chicago | Private | $51,700 | $107,000 |
Cornell University | Engineering | $58,000 | $106,000 |
Cornell University | Ivy League | $58,000 | $106,000 |
Lafayette College | Liberal Arts | $53,700 | $106,000 |
Bowdoin College | Liberal Arts | $52,700 | $106,000 |
Georgia Institute of Technology | Engineering | $58,900 | $105,000 |
Georgia Institute of Technology | State Schools | $58,900 | $105,000 |
Rice University | Private | $57,900 | $105,000 |
Tufts University | Private | $48,200 | $105,000 |
Dickinson College | Liberal Arts | $44,000 | $105,000 |
New Jersey Institute of Technology (NJIT) | Engineering | $55,100 | $104,000 |
New Jersey Institute of Technology (NJIT) | State Schools | $55,100 | $104,000 |
Washington and Lee University | Liberal Arts | $51,800 | $104,000 |
College of the Holy Cross | Liberal Arts | $46,600 | $104,000 |
Carleton College | Liberal Arts | $45,400 | $104,000 |
University of Southern California (USC) | Private | $54,600 | $103,000 |
University of California, San Diego (UCSD) | State Schools | $50,700 | $103,000 |
Williams College | Liberal Arts | $49,400 | $103,000 |
Davidson College | Liberal Arts | $45,800 | $103,000 |
Cooper Union | Engineering | $61,100 | $102,000 |
Claremont McKenna College | Liberal Arts | $58,300 | $102,000 |
California Polytechnic State University, San Luis Obispo (CalPoly) | Engineering | $57,000 | $102,000 |
California Polytechnic State University, San Luis Obispo (CalPoly) | State Schools | $57,000 | $102,000 |
Fairfield University | Private | $50,400 | $102,000 |
Stevens Institute of Technology | Engineering | $59,400 | $101,000 |
Boston College | Private | $51,500 | $101,000 |
Bates College | Liberal Arts | $46,400 | $101,000 |
Fordham University | Private | $46,100 | $101,000 |
Columbia University | Ivy League | $57,300 | $100,000 |
Vanderbilt University | Private | $51,800 | $100,000 |
University of Illinois at Urbana-Champaign (UIUC) | Engineering | $53,900 | $99,700 |
University of Illinois at Urbana-Champaign (UIUC) | Party Schools | $53,900 | $99,700 |
University of Illinois at Urbana-Champaign (UIUC) | State Schools | $53,900 | $99,700 |
Middlebury College | Liberal Arts | $45,000 | $99,200 |
Villanova University | Engineering | $56,700 | $99,000 |
Rose-Hulman Institute of Technology (RHIT) | Engineering | $61,100 | $98,800 |
Tulane University | Party Schools | $47,800 | $98,800 |
Clarkson University | Engineering | $55,400 | $98,500 |
University of California, Santa Barbara (UCSB) | Party Schools | $49,700 | $98,400 |
University of California, Santa Barbara (UCSB) | State Schools | $49,700 | $98,400 |
Drexel University | Private | $54,100 | $98,000 |
Illinois Institute of Technology (IIT) | Engineering | $57,400 | $97,600 |
Case Western Reserve University | Engineering | $56,500 | $97,500 |
Pomona College | Liberal Arts | $50,500 | $97,500 |
Iona College | Private | $47,200 | $97,500 |
Virginia Polytechnic Institute and State University (Virginia Tech) | Engineering | $52,900 | $97,400 |
Virginia Polytechnic Institute and State University (Virginia Tech) | State Schools | $52,900 | $97,400 |
George Washington University (GWU) | Private | $48,200 | $97,300 |
Loyola College in Maryland | Liberal Arts | $45,000 | $97,300 |
University of Virginia (UVA) | State Schools | $52,200 | $97,200 |
University of California at Los Angeles (UCLA) | State Schools | $51,600 | $97,000 |
Southern Methodist University (SMU) | Private | $48,600 | $96,900 |
Connecticut College | Liberal Arts | $42,500 | $96,800 |
San Jose State University (SJSU) | State Schools | $53,400 | $96,300 |
New Mexico Institute of Mining and Technology (New Mexico Tech) | Engineering | $51,700 | $96,300 |
Miami University | State Schools | $47,100 | $96,100 |
Wesleyan University (Middletown, Connecticut) | Liberal Arts | $46,300 | $95,700 |
Occidental College | Liberal Arts | $45,300 | $95,700 |
University of California, Davis (UC Davis) | State Schools | $51,200 | $95,400 |
St. John's University, New York | Private | $50,000 | $95,400 |
Loyola Marymount University | Private | $43,500 | $95,400 |
Missouri University of Science and Technology (Missouri S&T) | Engineering | $57,300 | $95,200 |
Texas A&M University | State Schools | $51,100 | $95,000 |
Johns Hopkins University | Engineering | $57,800 | $94,900 |
New York University (NYU) | Private | $49,600 | $94,900 |
Kettering University | Engineering | $57,900 | $94,500 |
Emory University | Private | $50,600 | $94,300 |
University of Colorado - Boulder (UCB) | Party Schools | $47,100 | $94,300 |