What is the guiding principle of dfas investment strategy

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Reference no: EM131312204

Finance Paper

1. No more than one and half page. Due 12/12 8am. First one is article, second one is short vrideo. Links are below.

Read the following article on Dimensional Fund Advisors:

https://www.wsj.com/articles/making-billions-with-one-belief-the-markets-cant-be-beat-1476989975

Write a composed essay (1 page max) addressing the following questions: (1) How can DFA be considered an active and passive investor at the same time?; (2) What is the guiding principle of DFA's investment strategy?; (3) What is the most prevalent stock class in DFA's portfolio? What market anomaly is the fund capitalizing on? When was this anomaly first discovered and by whom? (4) Why are shares of this fund only available to large financial institutions and not to small retail investors like you and I?

2. Watch the following documentary about insider trading:

https://www.pbs.org/wgbh/frontline/film/to-catch-a-trader/

Write a composed essay (1 page max) addressing the following questions: (1) What does rule 10B 5-1 of the SEC's trading code say about trading on "material nonpublic information" and how is material nonpublic information defined by the SEC? (2) How do hedge fund managers such as Mr. Cohen's manage to trade on inside information and not get caught? (3) Do you think insider trading should be made legal? Make an argument using the levels of informational efficiency presented by Eugene Fama in his articles. (4) What is more fair for capital allocation efficiency, that insider trading is banned or allowed?

Reference no: EM131312204

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