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FNCE 401 v7: Investments Report a Broken Link

FNCE 401 examines financial instruments and their analysis in detail. You will gain an understanding of markets and various portfolio theories; investment vehicles; and portfolio management techniques, evaluation, and international investing.

This digital reading room contains several optional readings that will expand upon material presented in the textbook and lesson notes and incluse foundational texts for the several of the theories and models covered in this course as well as more recent explorations of current investment issues. You are encouraged to download these resources for future use.

Unit 1: Introduction to Investments

Lesson 2: Financial Markets and Instruments
Fabozzi, F., Liu, J., & Switzer, L. N. (2009). Market efficiency and returns from convertible bond hedging and arbitrage strategies. Journal of Alternative Investments, 11(3), 37–46.
Partch, M. (1987). The creation of a class of limited voting common stock and shareholder wealth. Journal of Financial Economics, 18(2), 313–339.
Lesson 3: Trading on Securities Markets
Ursel, N. D. & Trepanier, D. J. (2001). Securities regulation reform and the decline of rights offerings. Canadian Journal of Administrative Sciences, 18(2), 77–86.
Brav, A., Geczy, C., & Gompers, P. A. (2000). Is the abnormal return following equity issuances anomalous? Journal of Financial Economics, 56(2), 209–249.
Londerville, J. (2002). Canadian real estate investment trusts: A review of the IPO literature and preliminary analysis of Canadian REIT IPO pricing. Canadian Journal of Administrative Sciences, 19(4), 359–368.
Ross, K., Shapiro, J., & Smith, K. (1996). Price improvement of superDOT market orders on the NYSE. NYSE Working Paper 96-02.

Unit 2: Portfolio Theory

Lesson 4: Return and Risk: Analyzing the Historical Record
Khoury, N. T. & Melard, G. (1985). The relationship between the Canadian treasury‐bill rate and expected inflation in Canada and in the United States. Canadian Journal of Administrative Sciences, 2(1), 63–76.
Roll, R. (1992). Industrial structure and the comparative behavior of international stock market indices. Journal of Finance, 47(1), 3–41.
Lesson 5: Risk Aversion and Capital Allocation to Risky Assets
Grossman, S. J. & Shiller, R. J. (1981). The determinants of the variability of stock market prices. American Economic Review, 71(2), 222–227.

Unit 3: Equilibrium in Capital Markets

Lesson 7: CAPM, Index Models, and Arbitrage Theory
Jagannathan, R. & Wang, Y. (2007). Lazy investor, discretionary consumption, and the cross-section of stock returns. Journal of Finance, 62, 1633–1661.
Heaton, J. & Lucas, D. (2000). Portfolio choice and asset prices: The importance of entrepreneurial risk. Journal of Finance, 55(3), 1163–1698.
Fama, E. F. (1970). Multiperiod consumption-investment decisions. American Economic Review, 60(1), 163–174.
Lesson 8: Market Efficiency, Behavioural Finance, Technical Analysis, and Empirical Evidence
Busse, J. A. & Green, T. C. (2002). Market efficiency in real time. Journal of Financial Economics, 65(3), 415–437.
Patell, J. M. & Wolfson, M. A. (1984).  The intraday speed of adjustment of stock prices to earnings and dividend announcements. Journal of Financial Economics, 13(2), 223–252.
Coval, J. D. & Shumway, T. (2005). Do behavioral biases affect prices? Journal of Finance, 60(1), 1–34.
Jagannathan, R. & Wang, Z. (1996). The conditional CAPM and the cross-section of expected returns. Journal of Finance, 51(1), 3–53.

Unit 4: Fixed Income Securities

Lesson 9: Bond Prices and Yields
Kryzanowski, L. & To, M. C. (1980). Small-business debt financing: An empirical investigation of default risk. Journal of Business Administration, 2(1), 24–42.
Lesson 11: Managing Bond Portfolios
Biewag, G. O., Fooladi, I., & Roberts, G. S. (1993). Designing an immunized portfolio: Is M-squared the key? Journal of Banking and Finance, 17(6), 1147–70.
Fooladi, I. & Roberts G. S. (1992). Bond portfolio immunization: Canadian tests. Journal of Economics and Business, 44(1), 3–17.

Unit 5: Equities

Lesson 13: Financial Statement Analysis
Bergstresser, D., Desai, M. and Rauh, J. (2006). Earnings manipulation, pension assumptions, and managerial investment decisions. Quarterly Journal of Economics, 121(1), 157–195.

Unit 6: Derivative Assets

Lesson 15: Option Valuation
Black, F. & Scholes, M. (1973). The pricing of options and corporate liabilities. Journal of Political Economy, 81(3), 637–654.
Geske, R., and Johnson, H. E. (1984). The American put option valued analytically. Journal of Finance, 39(5), 1511–1524.
Lesson 16: Futures and Forward Markets
Jarrow, R. A. & Oldfield, G. S. (1981). Forward contracts and futures contracts. Journal of Financial Economics, 9(4), 373–382.

Unit 7: Active Portfolio Management and International Investing

Lesson 17: Active Management and Performance Measurement
Grossman, S. J. & Stiglitz, J. E. (1980). On the impossibility of informationally efficient markets. American Economic Review, 70(3), 393–408.
Sharpe, W. F. (1966). Mutual fund performance. Journal of Business, 39(1), 119–138.
Ingersoll, J., Spiegel, M., Goetzmann, W., & Welch, I. (2007). Portfolio performance manipulation and manipulation-proof performance measures. Review of Financial Studies, 20(5), 1503–1546.
Brown, S. J., & Goetzmann, W. N. (1995). Performance persistence. Journal of Finance, 50(2), 679–698.
Switzer, L., & Zoghaib, R. (1999). Index participation units, market tracking risk, and equity market demand. Canadian Journal of Administrative Sciences, 16(3), 243–255.
Lesson 18: Managed Funds
Thompson, R. (1978). The information content of discounts and premiums on closed-end fund shares. Journal of Financial Economics, 6(2-3), 151–186.
Pontiff, J. (1996). Costly arbitrage: evidence from closed-end funds. Quarterly Journal of Economics, 111(4), 1135–1151.
Malkiel, B. G. (1995). Returns from investing in equity mutual funds 1971 to 1991. Journal of Finance, 50(2), 549–572.
Lesson 19: International Investing
Alexander, G. J., Eun, C. S. & Janakiramanan, S. (1987). Asset pricing and dual listing on foreign capital markets: A note. Journal of Finance, 42(1), 151–158.
Booth, L. D. & Johnston, D. J. (1984). The ex-dividend day behavior of Canadian stock prices: Tax changes and clientele effects. Journal of Finance, 39(2), 457–476.
Mittoo, U. R. (1992). Additional evidence on integration in the Canadian stock market. Journal of Finance, 47(5), 2038–2054.