Compare and Contrast E(R) of individual securities with E(R) of well diversified portfolios Devise solutions to simulated investment exercises Chapter 11 Week 7 2/26 & 28 How Managers Use Efficient An Interview with Eugene Fama (2010) markets, Portfolio theory, and CAPM to make firm An Interview with Robert Shiller (2014) investment decisions Review historical perspective of EMH Technical Analysis is Behavioral (2013) Compare the characteristics of Perfect Markets to Read a few articles from an internet search Efficient Markets of “Fama wins the Nobel Prize. Also search Draw conclusions on causes for price patterns in for Behavorial Finance and read a few of the Perfect versus efficient markets articles. Discuss the paradox of efficiency, legality, and the purpose of Insider Trading Laws Visit This information-packed website is Equate LHS and RHS of Firm’s Balance Sheet to maintained by IFA investment Portfolios advisory firm affiliated with DFA mutual Critique GAAP-based financial statement issues funds. Investments and information are Critique tax issues with debt versus equity based on efficient market research. David Critique diversification issues Booth, DFA founder, endowed the Evaluate the pricing efficience of LHS and RHS of University of Chicago business school with Balance sheet $300 million in 2008. He was a PhD student Assess quality of information from LHS versus under Eugene Fama in the 1970’s. RHS accounts Formulate a cost for Debt Capital Power Lunch video on Insider Trading at: Formulate a cost for Equity Capital Week 8 3/5 & 3/7 Continue WACC, & NPV Apply WACC to determine McDonal’s Cost of Capital Apply CAPM in WACC Evaluate a McDonald’s project using its WACC Convert project Income statement to cash flow statement Evaluate salvage and capital gains taxes Ch 11: Q: 4, 6, 7, 8 Spring Break 3/11 thru 3/15 PQ: 9, 10, 11, 14, 16 , Solutions
Compare and Contrast E(R) of individual securities with E(R) of well diversified portfolios Devise solutions to simulated investment exercises Week 7 2/26 & 28 How Managers Use Efficient markets, Portfolio theory, and CAPM to make firm investment decisions Review historical perspective of EMH Compare the characteristics of Perfect Markets to Efficient Markets Draw conclusions on causes for price patterns in Perfect versus efficient markets Discuss the paradox of efficiency, legality, and the purpose of Insider Trading Laws Equate LHS and RHS of Firm’s Balance Sheet to Portfolios Critique GAAP-based financial statement issues Critique tax issues with debt versus equity Critique diversification issues Evaluate the pricing efficience of LHS and RHS of Balance sheet Assess quality of information from LHS versus RHS accounts Formulate a cost for Debt Capital Formulate a cost for Equity Capital Week 8 3/5 & 3/7 Continue WACC, & NPV Apply WACC to determine McDonal’s Cost of Capital Apply CAPM in WACC Evaluate a McDonald’s project using its WACC Convert project Income statement to cash flow statement Evaluate salvage and capital gains taxes Spring Break 3/11 thru 3/15 Chapter 11 An Interview with Eugene Fama (2010) An Interview with Robert Shiller (2014) Technical Analysis is Behavioral (2013) Read a few articles from an internet search of “Fama wins the Nobel Prize. Also search for Behavorial Finance and read a few of the articles. Visit This information-packed website is maintained by IFA investment advisory firm affiliated with DFA mutual funds. Investments and information are based on efficient market research. David Booth, DFA founder, endowed the University of Chicago business school with $300 million in 2008. He was a PhD student under Eugene Fama in the 1970’s. Power Lunch video on Insider Trading at: Ch 11: Q: 4, 6, 7, 8 PQ: 9, 10, 11, 14, 16 , Solutions
syllabus_3310_master.docx