Looking Back: Quantitative Analysis Before Computers
“Looking Back: Quantitative Analysis Before Computers”, with Lawrence Ferguson, Joel Rentzler, and Susana Yu, The Journal of Applied Finance, 2004, Spring/Summer.
10 Pages Posted: 25 Feb 2016
Date Written: May 31, 2004
A few security analysts engaged in quantitative analysis long before computers became readily available. This study presents an example dating from 1972. An analyst examined the fixed cost–variable cost structure of General Motors by creating a nonlinear algebraic model, transforming the model into a two-variable linear form, and estimating the model by means of a scatter diagram. The analyst’s conclusions stand up remarkably well according to regression analysis 30 years after the fact.
Keywords: Quantitative Financial Analysis, Stock Analysis, Fundamental Analysis, Stock Valuation,
JEL Classification: G10, G12, G14
Suggested Citation: Suggested Citation