FIN 432BH - Investment Analysis and Management
Professor James Dow
This is the honors section of FIN 432. You can apply at the Finance Department office. It's easy - just go in and give them your name and your GPA.
Extra Problems:
1. Your portfolio consists of 60% stocks and 40% bonds. The expected returns for stocks and bonds are 14% and 6% respectively. The standard deviations are 20% and 8%. The correlation of returns is 0.4. What is the expected return and standard deviation of your portfolio?
2. Using the same information, what would be the standard deviation of the portfolio return if you were choosing your asset allocation to produce a 12% expected return.
Below are links to required and optional readings - additional links will be added as class progresses
MPT and Beyond
"Portfolio Advice for a Multifactor World" - John H. Cochrane (PDF)
"New Facts in Finance" - John H. Cochrane (PDF)
JP Morgan Behavioral Value Fund - read the "investment philosphy"
DCF Assignment
Asset Allocation Assignment
+ related links
Asset Allocator-Smart Money
Asset Allocator-CNN/Money
Asset Allocator-Vanguard
Asset allocation in the context of financial planning
Monte Carlo approach to measuring volatility
Stock Screen Assignment
+ related links
MSN Stock Screener
Morningstar Stock Screener
MSN Premade Stock Screens
Yahoo Stock Screener
Speech by Charles Munger
Berkshire Hathaway Shareholders Letters
And then we have:
The Beardstown Ladies
Mutual Fund Magic?
CFP Topic List
Series 7 Topic List (PDF and a little old)
CFA Topic List (PDF)