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CFA Refresher Readings

 

Equity Investments: Study Session 13

 

Study Session Materials

New Readings from the 2008 CFA Program

Complete List of CFA Program Readings

 

Topic Overview

Residual Income and Alternative Investments

This study session presents a final widely used equity valuation approach (residual income analysis) and two of the major categories of alternative investments. Residual income models (including economic value added models) can be a useful alternative to other valuation models (such as DDMs, FCF models, or price multiples) to evaluate performance and value equities. Real estate and hedge funds have become two of the major alternative investments asset categories. The two real estate readings apply traditional valuation models to commercial real estate. Finally, we address the unique challenges in evaluating hedge funds.

 

View learning outcome statements (LOS) for reading objectives.

 

New Readings from the 2008 CFA Program

 

"Investment Analysis"
Ch. 6, Real Estate, 13th edition,  James D. Shilling (South-Western, 2002) 		View LOS
"Income Property Analysis and Appraisal"
Ch. 10, Real Estate, 13th edition, James D. Shilling (South-Western, 2002) 		View LOS
"Evaluating the Performance of Your Hedge Funds"
Ch. 8, Evaluating Hedge Fund Performance, Vinh Q. Tran (Wiley, 2006) 		View LOS
"Buyers Beware: Evaluating and Managing the Many Facets of the Risks of Hedge Funds"
Ch. 9, Evaluating Hedge Fund Performance, Vinh Q. Tran (Wiley, 2006) 		View LOS

 

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Complete List of CFA Program Readings

 

Members may download these designated readings. Log in for access.

 

“Residual Income Valuation”
Ch. 5, Equity Asset Valuation, John D. Stowe, Thomas R. Robinson, Jerald E. Pinto, and Dennis W. McLeavey (Wiley, 2007)
Member download (PDF) 		member benefit button View LOS
“Security Analysis Using Value-Based Metrics”
Ch. 12, James A. Abate and James L. Grant, The Theory & Practice of Investment Management, Frank J. Fabozzi and Harry M. Markowitz, ed. (Wiley, 2002) 		  View LOS
"Investment Analysis"
Ch. 6, Real Estate, 13th edition,  James D. Shilling (South-Western, 2002) 		  View LOS
"Income Property Analysis and Appraisal"
Ch. 10, Real Estate, 13th edition, James D. Shilling (South-Western, 2002) 		  View LOS
"Evaluating the Performance of Your Hedge Funds"
Ch. 8, Evaluating Hedge Fund Performance, Vinh Q. Tran (Wiley, 2006) 		  View LOS
"Buyers Beware: Evaluating and Managing the Many Facets of the Risks of Hedge Funds"
Ch. 9, Evaluating Hedge Fund Performance, Vinh Q. Tran (Wiley, 2006) 		  View LOS