· Brain Scans of Traders Show Link Between Lust for Sex and Money o · o http://www.michaelcovel.

com/archives/000683.html Defining Risk by Glyn Holton http://www.riskexpertise.com/papers/risk.pdf

· Aristotle on Investment Decision Making by Abby Joseph Cohen · Dividends and the Frozen Orange Juice Syndrome by Peter L. Bernstein · Warren Buffet on Risk (bottom of page 6 through top of page 12 from Berkshire Hathaway’s 2001 Annual Report) o http://www.berkshirehathaway.com/2001ar/impnote01.html

· The Adaptive Markets Hypothesis: Market Efficiency from an Evolutionary Perspective by Andrew W. Lo (this is really a readable articles and an extremely good one) o http://web.mit.edu/alo/www/Papers/JPM2004.pdf#search='the%2 0adaptive%20markets%20hypothesis' · The Early History of Portfolio Theory: 1600-1960 by Harry Markowitz o Slide version of his paper

§ http://www.business.uts.edu.au/qfrc/conferences/ppfim/download s/harrymarkowitz_slides.pdf#search='the%20early%20history%2 0of%20Portfolio%20Theory' · o Normal Investors, Then and Now by Meir Statman

http://lsb.scu.edu/finance/faculty/statman/articles/normal%20inve stors%20090704.pdf#search='the%20early%20history%20of%20 Portfolio%20Theory' · Faces of Change: “These 30 People, through their ideas and research, made huge contributions to the way money managers, institutional investors and pension funds do business” from Pensions and Investments October 27, 2003 · Seeking Return in a Low Return Environment by Richard Meagher · Estimating the Stock/Bond Risk Premium by Lacy Hunt

· The Economics of Short-Term Performance Obsession by Alfred Rappaport o http://www.expectationsinvesting.com/TCO/EconomicsofShortTer m.pdf#search='The%20Economics%20of%20ShortTerm%20Perfo rmance%20Obsession' · Determinants of Portfolio Performance-20 Years Later by L. Randolph Hood · Alpha Hunters and Beta Grazers by Martin Leibowitz

· Field of Investment Dreams (author uses baseball as example of difficulty in using statistics to uncover talent) by FRP Research · Timeless Wisdom by John Bogle (the founder of Vanguard and a major advocate for index mutual funds) · Cut Your Gains by Warren Buffet

o http://money.cnn.com/2006/03/05/news/newsmakers/buffett_fortu ne/ · “The Arithmetic of Active Management” and “The Parable of the Money Managers” by William F. Sharpe

o o ·

http://www.stanford.edu/~wfsharpe/art/active/active.htm http://www.stanford.edu/~wfsharpe/art/parable/parable.htm Invest in Businesses, Not Stocks by H. Bradlee Perry

· What’s Up with the Stock Market? By Jeremy Grantham from the Greenwich Roundtable Quarterly (Vol. 2, #1, 2005) · Global Macro Strategies by Dan Tapiero from the Greenwich Roundtable Quarterly (Vol. 2, #1, 2005) · Global Macro Strategies by Ray Dalio from the Greenwich Roundtable Quarterly (Vol. 2, #1, 2005) · What’s Wrong with Investment Performance by David Babson · Blinded by Theory? By Robert Arnott

o http://www.rug.nl/economie/faculteit/medewerkers/SalomonsR/Ar nott2004.pdf?as=pdf o A slide version of hits paper:

§ http://www.cqa.org/uploads/papers/182170405141582057aae75. ppt · Demographics and Capital Market Returns by Rob Arnott and Anne Casscells o http://www.researchaffiliates.com/pubs/pdf/demographics109591 6261.pdf#search='demographics%20and%20capital%20market %20returns' · · Out of Step – Out of Money by H. Bradlee Perry Determining the Equity Risk Premium by Peter Bernstein

o · o

See File 01 Attached The Equity Risk Premium by Barclays Bank See File 02 Attached

· Ditch the “Experts”; Grading Pundits and Prognosticators: More Famous = Less Accurate from Fortune Magazine, February 6, 2006 · Total Integrated Risk Management: Insurance Elements by John Mulvey, Salvatore Correnti and John Lummis · What Risk Premium is Normal by Robert Arnott and Peter Bernstein o · See File 03 Attached Bubble, Rubble, Finance In Trouble by Andrew W. Lo

o http://www.alphasimplex.com/Papers/paper3.pdf#search='bubble %2C%20rubble%2C%20finance%20in%20trouble' · Emotions Still Run Wild by H. Bradlee Perry

· The Talent Myth: Are Smart People Overrated? Parts I and II from David L. Babson & Company · Popularity Is Still Perilous by from David L. Babson & Company · Risk – By Any Other Name by Michael Farrell

· Compound Interest: Timeless miracle of Time by Edwin Everett · Making Sense of Market Unpredictability by Edwin Everett

· The Great Disruption – Part II by Clayton Christensen, Thomas Craig and Stuart Hart

· Living Legends: Words from The Wise moderated by Charley Ellis · The Behavioral Connection (Exploring the Connection Between technical Analysis and Behavioral Finance) by Stephen Brown and Hype and Algorithms by Nancy Opiela · Rethinking the Rational Man (Is Modern Portfolio Theory Just a Special Case with limited Significance?) by Susan Trammell · The Biggest Mistakes We Teach by Jay Ritter

o http://bear.cba.ufl.edu/ritter/work_papers/mistake.pdf#search='T he%20Biggest%20Mistakes%20We%20Teach' · Why Logic Often Takes a Backseat (The Study of Neuroeconomics May Topple the Notion of Rational DecisionMaking) by Peter Coy o http://www.businessweek.com/magazine/content/05_13/b392609 9_mz057.htm · The Fortune Tellers by Howard Kurtz

· Determinants of Portfolio Performance by Brinson, Hood and Beebower (this is a classic and often referenced article in finance) o http://www.ivtb.nl/artikelen/DeterminantsofPortfolio.pdf#search=' Determinants%20of%20Portfolio%20Performance' · The Myth of the Absolute-Return Investor by Barton Waring and Laurence Siegel · Derivatives Can Be Hazardous to Your Heath: The Case of Metallgesellschaft by Franklin Edwards o http://www2.gsb.columbia.edu/faculty/fedwards/papers/Derivativ

esCanBeHazardous.pdf · The Collapse of Metallgesellschaft: Unhedged Risks, Poor Hedging Strategy, or Just Bad Luck? By Franklin Edwards and Michael Canter o http://www2.gsb.columbia.edu/faculty/fedwards/papers/The_Colla pse_of_Metallgescellschaft.pdf · A Retrospective on Five Essential Truths from The Babson Staff Letter · “From Stock Selection to Portfolio Alpha Generation: The Role of Fundamental Analysis” (Excellent article on how the true pro’s invest in stocks) o http://www0.gsb.columbia.edu/ceasa/policy/ceasa_roundtable.pdf

· Note the next several are from “Efficient Frontier: An Online Journal of Practical Asset Allocation”:

· Excellent collection of articles by William Bernstein, “Only Two Centuries of Data”, When Risk and Return Become the Same”, Efficiency, Rationality, and Arbitrage”, and “Of Markets, Economies, and Populations” o http://www.efficientfrontier.com/ef/402.pdf#search='Only%20Two %20Centuries%20of%20Data' · Excellent collection of articles by William Bernstein, “How Much Pie Can You Buy?”, “Riding for a Fall”, “Of Risk and Myopia”, “So Long Valhalla, Hello Risk Premium”, and “Cowards’ Update” o http://www.efficientfrontier.com/ef/102.pdf#search='How%20Muc

h%20Pie%20Can%20You%20Buy' · Excellent collection of articles by William Bernstein, “The ETF vs. Open-End Index-Fund Shootout”, “The Societal Risk Premium”, “The Retirement Calculator from Hell. Part III: Eat, Drink, and Be Merry”, and “The Changing Landscape of Factor Investing” o http://www.efficientfrontier.com/ef/901.pdf#search='The%20ETF %20vs.%20OpenEnd%20IndexFund%20Shootout' · “The Relentless Rules of Humble Arithmetic”, Remarks by John C. Bogle, Founder and Former Chairman, The Vanguard Group. Financial Analysts Journal; November/December 2005 o http://www.vanguard.com/bogle_site/sp20060101.htm

· “Rubble Logic: What Did We Learn from the Great Stock Market Bubble?” by Clifford Asness · Capital Ideas: From the Past to the Future” by Peter Bernstein (a good updated summary of his famous “Capital Ideas” book from the early 1990s) · “Perspectives on the Equity Risk Premium” by Jeremy Siegel

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