This document contains my lecture notes on Valuation and Security Analysis developed over 25 years while teaching at Cornell, University of Chicago, and Northwestern University. There are twelve lecture notes in this document covering cash flows, valuation, cost of capital, and security...

Asymmetric volatility refers to the stylized fact that stock volatility is negatively correlated to stock returns. Traditionally, this phenomenon has been explained by the financial leverage effect. This explanation has recently been challenged in favor of a risk premium based explanation. We...