SECURITY ANALYSIS
(Finance 450)

"As a practical matter, I still think it's prudent to assume that the market is pretty close to efficient in terms of pricing and risk and return and all that.  On the other hand, we've certainly learned from cognitive psychology that ordinary human beings need to have alternatives framed in ways that can help them make right decisions rather than wrong decisions." 

- William F. Sharpe -

1990 Nobel Laureate in Economics

Course Materials: Syllabus (Word Doc)
Course Learning Outcome Statements  Learning Outcome Statements (Word .doc format)
   
Test #1 Test #1 Review Comments (Word .doc format)
Test #2  
Final Exam  
   
Homework Projects: Mission Statement Assignment
Preliminary Comments 
Mission Statement for The PAA Quant-Value Fund
Project Guidelines (Word .doc format)

Additional sample files from previous years:

Mission Statement for The PAA Quant-Value Fund
Excel Spreadsheet for Estimating Portfolio Weights for the PAA Quant-Value Fund
  Virtual Portfolio Project (Word Doc)  

Virtual Portfolio Project -  Final Report Comments 

Stock Screening via Benjamin Graham

Lecture Notes on Portfolio Management Process and Strategy

Intra-Group Assessment Form

Virtual Stock Exchange

   
Sample Excel Spreadsheets Hong Kong & Taiwan Portfolio Analysis

Beta Estimation & Characteristic Line Example

Additional Handouts "The Intelligent Investor," Chapter 18

"Value Investing," Chapter 3

   
Master Investor Lecture Lecture Notes
Vanguard article: Finding Consistent Alpha
   

Review Questions for "Trillion Dollar Bet"

 Questions
   
Links on Value Investing:

Columbia University's Security Analysis Website (CAP at Columbia)

Expectations Investing Homepage

Warren Buffett's Letters to Berkshire-Hathaway Shareholders

Tilson Funds

Gabelli Asset Management

"Gabelli University"

 

Some Other Investment-Related Links:

Haugen Custom Financial Systems

Wall Street Uncut - Unconventional Financial Interviews

 

Some Investment-Related Articles: Forbes' "Best of the Web" Sites for Investing

A Couple of Motley Fool Articles:

Should Warren Buffett Call It Quits? (From April 3, 2002)
Party Like It's 1929

Baruch Lev on Accounting: New Math for a New Economy

Forbes ASAP article on P/V vs. P/S vs. P/E ratios, by Geoffrey Moore,the author of "The Gorilla Game"

Aswath Damodaran's Valuation Website

 

   
Powerpoint Lecture Notes: Note:  These are provided as a study tool to help you outline and study the chapters and topics that will be covered in class. The in-class presentation will not always follow along these lecture notes and may present the material in a different manner.
Introduction

Introduction (and Haugen, Ch. 1)  

 

I.  Security Valuation and Fundamental Analysis

Valuation and EIC Analysis, Part 1

Valuation and EIC Analysis, Part 2

Cover chapters 11, 14, 15, & 18

 

II.  The EMH and Behavioral Finance

Efficient Capital Markets (Ch. 6)

 

Supplemental Material on the EMH and Behavioral Finance:

"Shift Happens" (article)

"What have you learned in the last two minutes?" (article)

 

III.  Portfolio Theory and Quantitative Investment Analysis

Introduction to Portfolio Management (Ch. 7 lecture notes - 3 or 6 slides per page)

Introduction to Asset-Pricing Models (Ch. 8)

Multi-Factor Models of Risk and Return (Ch. 9) 

Estimating Expected Return with the Theories of Modern Finance (Ch. 2, Haugen)  

Haugen, Part I: "What Pays Off" 

 

IV.  Portfolio Construction and Performance Assessment

Equity Portfolio Management Strategies (Ch. 17) 

Evaluation of Portfolio Performance (Ch. 26)

 

V.  Bond Analysis and Bond Portfolio Management

Additional Material on Bond Analysis and Bond Portfolio Management:

Ch. 19

Ch. 20

 

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