Case Study: Dimensional Fund Advisors, 2002

1. What are the scientific beliefs of Dimension Investment Advisors (DFA)?  What idea of products does DFA proffer? How does DFA add esteem for its investors? 2. How is DFA’s calling standard akin to the investigation of FAMA and French?  Why do you conceive small-cap stocks outperformed large-cap stocks historically?  That is, do the rectify profits of  small-cap stocks animadvert the damages for extra induce or the chastisement in mispricing?  In other words, do you conceive small-cap stocks are induceier than large-cap stocks?  Or small-cap stocks are undervalued not-absolute to large-cap stocks and such mispricing is corrected as season elapses? Do you await this archetype to abide? 3. Similarly, why do you conceive esteem stocks outperformed development stocks historically? That is, do The rectify profits of esteem stocks animadvert induce damages or corrected mispricing?  Do you Expect this archetype to abide?   4. Why does DFA concern so considerable about trading?  What rules does the immovable adopt for its trading practice?  Do you conceive DFA can practise its competitive utility in trading in the advenient? 5. How does DFA’s new tax-management calling exertion?  What are the costs and the benefits?  Is the tax-managed investment calling slight to be prosperous on a unreserved layer? 6. How should DFA manipulate its manoeuvre going ready?  To abide its luck, do you conceive DFA should execute any changes?  If so, can you propose any directions?  If not, why?