1. STAT 482/682: Quantitative Financial Analytics Course Overview August 22, 2011 George R. Brown School of Engineering STATISTICS

2. Overview STAT 482/682 Syllabus Small group assignments Fundamental Analysis or Analytics Data Sources Lingua franca – Accounting Financial Math Test2

3. Analytics Can mean very different things 3

4. Data Sources WSJ Value Line IBD SEC EDGAREDGAR Cut and Paste –MRIMRI –Various sites (see TRU website)TRU website Yahoo - http://finance.yahoo.comhttp://finance.yahoo.com H-Quote WRDS –CRSP –Compustat –CRSP/Computstat Merged BKVLPS EPSPI MKTVALT 4

5. Data Sources RealTime –Trading platforms –Data vendors Tradestation PC Quote Quote.com Historical 5

6. Data Sources Asset ClassTimeframe VCTick data Hedge FundIntraday Mutual FundDaily StockWeekly FuturesMonthly Real EstateQuarterly Economic DataAnnual ETF’s F/X 6

7. Why use WRDS? CCitigroup705191986-20101231 CChrysler112601925-19981112 LEHLehman805991994-20080917 BSC BearStearns 683041985-20080530 GM GenMotors 120791925-20090601 MTLQQ 12079 MOTORS LIQUIDATION CO GM1236911/18/10-EOY J, XON, XOM, etc.12060 7

8. Investments 8

9. The Process Investment analysis Finance Valuation Enterprise exchange Capital markets Forecasting Dealing with uncertainty or risk 9

10. BRKA 2009 10-k Need a little vocabulary 10

11. Accounting 11

12. Financial Math Time Value of Money Return calculation Stochastic considerations 12