Click to edit Master title styleClick to edit Master text stylesSecond levelThird levelFourth levelFifth levelCapital BudgetingFor 9.220 Term 1 20020302_Lecture9.pptOutlineIntroductionProblems with IR

Copyright ? 2010 by Nelson Education Ltd. 17- Investment Analysis and Portfolio ManagementFirst Canadian EditionBy Reilly Brown Hedges Chang17Structure and EvolutionPrivate Management and Advisory

Cost EstimatingCritical for:Determining whether to make an investment to provide a product for the consumer marketDeciding if apany should quote on a product for sale to anotherpany

Hedge Fund Alpha and BetaJohn H. CochraneUniversity of Chicago GSBBetasAlpha = Average return – beta E(factor)HF data is pretty hopeless for ER alphaSurvivor backfill self-reportedσT made worse