Investment Course III

Santiago, Chile     -     November 21-22, 2007

 

Listed below are links to various course-related materials, including PowerPoint files containing the course outline and notes for various topics covered during the class, as well as Excel workbooks containing spreadsheets supporting many of the examples and calculations performed in the course.  You will also find Word and PDF documents containing some research articles related to the material covered in the course. 

You can click on the indicated link to download the desired document:

 

• Course Outline:

          Topic List & Instructor Biographies

 

• Course Notes:

          Topic 1 - Expected Returns & Measuring the Risk Premium

          Topic 2 - Asset Allocation: Decisions & Strategies

          Topic 3 – Demographic Changes and Economic Growth

          Topic 4 - Portfolio Risk Analysis

          Topic 5 – Identifying Superior Active Portfolio Management

          Topic 6 - Portfolio Optimization: Analytical Techniques

          Topic 7 - Portfolio Optimization: Case Studies

 

• Excel Workbooks:

Topic 1:                U.S. Historical Return Statistics, 1926-2006

                             Black-Litterman Expected Returns

Topics 4 & 6:        Portfolio Risk Calculations

                             Portfolio Optimization Using Historical Returns

 

 • Research Articles:

T1:     “The Equity Premium” (by E. Fama and K. French)

          “Equity Premia as Low as Three Percent?” (by J. Claus and J. Thomas)

          “What Risk Premium is ‘Normal’?” (by R. Arnott and P. Bernstein)

          “A Step-by-Step Guide to the Black-Litterman Model” (by T. Idzorek)

“The Equity Risk Premium in January 2007: Evidence from the Global CFO Outlook Survey” (by J. Graham & C. Harvey)

T2:     “The Future of Investment Management” (by G. Brinson)

          “The Troves of Academe: Asset Allocation, Risk Budgeting, and the Investment Performance of University Endowment Funds” (by K. Brown, L. Garlappi, and C. Tiu)

T5:     “The Right Answer to the Wrong Question: Identifying Superior Active Management” (by V. Harlow and K. Brown)

          “Of Tournaments and Temptations: An Analysis of Managerial Incentives in the Mutual Fund Industry” (by K. Brown, V. Harlow, and L. Starks)

 T6:    “Quantifying the Cost of Investment Limits for Chilean Pension Funds” (by S. Bernstein and R. Chumacero)