PLEASE NOTE:

This documentation covers qUANT IX PORTFOLIO EVALUATOR version
2.10.

If you find the program useful, please send $39.00 to

QUANT IX SOFTWARE
5900 North Port Washington Road
Suite 142-A
Milwaukee, WI 53217

When we receive your registration fee, we will provide you with a
registration number. You use the registration number to receive
free support and discounts on other products. We will also send
you a bound copy of the complete reference manual.


IMPORTANT NOTICE:
=================

You are granted A LIMITED license to make copies for trial by
others on a private, non-commercial basis. This does not include
distribution:

1). In connection with any other product or service;
2). For general use within a company or institution;
3). For any consideration or 'disk fee';
4). Distribution in any modified form.


DISCLAIMER
==========

WITH RESPECT TO THE QUANT IX PORTFOLIO EVALUATOR PROGRAM AND ALL
DOCUMENTATION, QUANT IX SOFTWARE SPECIFICALLY DISCLAIMS ALL
WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO,
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE WITH RESPECT TO DEFECTS IN THE PROGRAM AND
DOCUMENTATION, AND THE PROGRAM LICENSE GRANTED HEREIN. IN
PARTICULAR, AND WITHOUT LIMITING OPERATION OF THE PROGRAM LICENSE
WITH RESPECT TO ANY PARTICULAR APPLICATION, USE, OR PURPOSE. IN
NO EVENT SHALL QUANT IX SOFTWARE BE LIABLE FOR ANY LOSS OF PROFIT
OR ANY OTHER COMMERCIAL DAMAGE, INCLUDING BUT NOT LIMITED TO
SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR OTHER DAMAGES. THIS
STATEMENT SHALL BE CONSTRUED, INTERPRETED AND GOVERNED BY THE
LAWS OF THE STATE OF WISCONSIN.

Other general notes:
====================

This program has been available to the general public since
September of 1985. It was designed by licensed investment


1










managers, and professional software engineers. It was originally
sold through conventional channels at a substantially higher
price. We have since released an update to the 2.1 version,
which is available through those same channels. If you find that
you would like to purchase the 3.0 version, you will be able to
do so at a 50% discount off the retail price direct from the
company. This is an offer to only those who have sent in the
$39.00 registration fee.

Getting Started
===============

About this documentation

This is a greatly abbreviated version of the reference
manual that is available to registered users. Its sole purpose
is to demonstrate how QUANT IX Portfolio Evaluator generally
works. Our full documentation has chapters covering the theory
of quantitative analysis, novice mode tutorial, expert mode
tutorial, reports and descriptions, model references, and how to
handle problems and use special features.


Minimum Hardware Requirements

- IBM PC/XT/AT or 100% compatible.
- Dos version 2.1 or greater.
- 128K clear memory (192K total).
- Display monochrome or color; no graphics required.
- Printer capable of printing 132 columns (ie. dot matrix in
compressed.

Limits and accuracy

QUANT IX Portfolio evaluator ver 2.1 was written in dBase
II ver 2.4 and compiled with Wordtech Systems compiler ver 1.4.
Theoretically the program can handle 65,535 different security
records. A single drive system can handle approximately 120
securities. A two drive can handle 500, and a 10 megabyte hard
disk system can handle about 10,000. Accuracy is limited to 10
digits.

System description

The purpose of QUANT IX is to increase the efficiency of the
investment decision making process by:

- using accepted quantitative investment models to identify
portfolio risk and return potential.
- compiling important investment information.
- organizing and classifying data.
- allowing faster and more relevant investment decisions.



2












System features

Included in QUANT IX's many features are the ability to:

- operate in either a menu or command line mode.
- produce 9 different professional reports.
- manage multiple portfolios.
- compare individual securities to one another.
- ask "What-if" questions.
- cross reference portfolios.

System reports

The Analysis Report: shows cost, market price and value,
unrealized gain/loss, income, yield, earnings per share, P/E
ratio and beta.

The Summary Report: shows degree of diversification,
quantitative model projections, and a summary of the
important market universe statistics.

The Fundamental Report: shows all the data and projections
of the fundamental valuation model.

The Modern Portfolio Theory Report: shows all the data and
projections of the MPT model.

The Inflation Adjusted Report: shows all the data and the
projections of the Inflation Adjusted model.

The Variable Growth Dividend Discount Report: shows all the
data and projections of the Variable Growth Dividend Model.

The Basis Report: organizes all the securities on a lot by
lot basis showing portfolio percentages, unrealized gains
and losses, and percentage gain/loss.

The Cash Flow Report: shows all the data and the results of
the cash flow model.

Individual Stock Appraisals: show all relevant security
information and projections for one on one comparisons.



Install Procedure
-----------------

Prerequisites

During the install procedure, certain DOS commands will be


3








used. They are 'COPY', 'DISKCOPY', and 'FORMAT'. If you have
any doubt about the use of these commands, please review your DOS
Manual.



Backup procedure
----------------

The first step in the install procedure, is to make an exact
copy of the QUANT IX files supplied. The original files are in
an archive called QPE21.ARC which you have already extracted.
The next step is to make a back up copy of the QUANT IX files.

First, format a blank floppy without the operating system on
it. This is done by omitting the '/S' parameter from the format
command and will give you the maximum usable space on your disk.
Label this disk 'QUANT IX Working Copy.' When using a computer
with two floppy drives, place the original disk in drive A: and
the working copy in drive B:. Using the copy command, transfer
all the files from the original disk to your working copy,
i.e.'COPY A:*.* B:'. When using a computer with only one floppy
drive, such as a PC-AT, use the 'DISKCOPY' command. Enter the
command,'DISKCOPY A: A:', and follow the prompts placing first
the original QUANT IX disk (SOURCE) and then the working copy
(TARGET) in A:.


Extremely Important

At this juncture we must discuss a critical point. No
matter what operating system you have with your computer, the
cold boot source must contain a file called 'CONFIG.SYS'. This
file is found on your working disk. If your system does not now
have this file, simply copy the one found on your working copy of
QUANT IX on to your cold boot disk (ie root directory of your
hard disk). If your system already has the file 'CONFIG.SYS' on
the boot disk, make sure the minimum values of "FILES=12" and
"BUFFERS=16" are used and that "DEVICE=ANSI.SYS" is included.
The second file that must be present in the boot source is
"ANSI.SYS" . THE "ANSI.SYS" CAN BE FOUND ON YOUR ORIGINAL DOS
DISK. MAKE CERTAIN THIS FILE IS ON THE BOOT SOURCE.

The following are the SETUP procedures for three different
computer configurations:

SETUP Single Drive

Boot the system from the disk containing the file
'CONFIG.SYS,' and 'ANSI.SYS' as above. Remove the boot disk and
insert the working copy. Delete the following files in order to
provide maximum space:
PORTDATA
PORTDATA.DBF
COPYDATA.BAT


4








CONFIG.SYS

Verify that the following files are on the working copy:

QPE.EXE
QPE.OVI


QPE.OV2
PORTDISC.TXT
PORTDISC.DBF
PORTSTRU.DBF
PORTSRCH.DBF
PORTLIST.DBF
PORTCONS.DBF
MASTPORT.DBF
MASTPORT.NDX
TESTPORT.DBF
TESTPORT.NDX

From the system prompt, enter 'QPE' and the program will
sign on.

SETUP Two Drives

Boot the system from the disk containing the file
'CONFIG.SYS' and 'ANSI.SYS' as above. Remove the boot disk and
insert the working copy. Place a blank formatted disk in B:.
This disk should be marked 'QUANT IX Data." From the system
prompt, enter 'COPYDATA." When the system prompt returns, verify
the following:

Files on A:
QPE.EXE
QPE.OV1
QPE.OV2
PORTDATA.TXT
PORTDATA.DBF

Files on B:
PORTDISC.TXT
PORTDISC.DBF
PORTSTRU.DBF
PORTSRCH.DBF
PORTLIST.DBF
PORTCONS.DBF
MASTPORT.DBF
MASTPORT.NDX
TESTPORT.DBF
TESTPORT.NDX

From the system prompt, enter 'QPE' and the program will
sign on.




5










SETUP Hard Disk

Cold boot the system as you normally do, making sure that
the Boot Disk contains the file 'CONFIG.SYS' and 'ANSI.SYS' are
contained in your root directory as described above.

We suggest that you log into the hard disk, create, and then
log into a sub-directory. The sub-directory is optional; you
could stay in your main (root) directory. However, the sub


directory is recommended to isolate the program and the data for
future back-ups.

For example, to make a sub-directory from the main directory
enter 'MD QPE' (make directory). This will create a sub-
directory called QPE. Next. enter the command 'CD QPE' (change
directory). This will make the empty sub-directory you just
created your current directory. Next, place your working copy of
QUANT IX in A:. Using the 'COPY' command, transfer all the files
from A: to C:, i.e. 'copy A:*.* C:. Your sub-directory named
'QPE' now has all the programs and data needed to operate QUANT
IX.

Delete the following files from the sub-directory in order
to provide maximum space:

PORTDATA
PORTDATA.DBF
COPYDATA.BAT
CONFIG.SYS (UNLESS YOU DID NOT CREATE A SUB-DIRECTORY
AND ARE STILL IN THE MAIN DIRECTORY!!)


Verify that the following files are in your new QPE sub-
directory:

QPE.EXE
QPE.OV1
QPE.OV2
PORTDISC.TXT
PORTDISC.DBF
PORTSTRU.DBF
PORTSRCH.DBF
PORTLIST.DBF
PORTCONS.DBF
MASTPORT.DBF
MASTPORT.NDX
TESTPORT.DBF
TESTPORT.NDX

From the system prompt enter 'QPE' and the program will sign
on.


6









NOTE: If you are starting from a cold boot, first log on to
the hard disk i.e. C:. Then change from the current directory to
the sub-directory where QPE is located. From the system prompt
enter 'QPE' and the program will begin

Install Rules

The printer must be capable of printing either 80 column in
compressed mode, or 132 column without compressed mode.


The drive used to cold-boot the system must contain the file
'CONFIG.SYS and also the commands 'Files=12' and 'Buffers=16' as
minimum values, also a file "ANSI.SYS".

The files QPE.EXE, QPE.OV1 and QPE.OV2 must be on the
default drive. When the program signs on it looks to the default
driver for the file PORTDATA.TXT.' If the file does not exist
the program assumes all data files are on the default drive. If
'PORTDATA.TXT' does exist, then 'PORTDATA.DBF' must also be on
the default drive. If 'PORTDATA.TXT' exists, the program reads
it and finds the drive where the data resides. 'PORTDATA.TXT' is
a one line, two byte ASCII file. It can be created with any
editor. The two bytes are a single letter followed by a colon.
The single letter points to the data drive. For example: The
contents of 'PORTDATA.TXT' on the working copy of a two floppy
system are 'B:'

Tutorial for the Menu (novice) Mode
===================================

General information

QUANT IX includes a sample individual and a sample master
portfolio.

A complete description of the command line options (which
appears in the top mid section of screen while in Menu Mode) is
available in the bound manual.

QUANT IX always starts with the Master Portfolio as the
current portfolio. The Master Portfolio acts as a library which
contains all the common data for the various individual
portfolios ( ie. dividends, earnings, market price, etc.).

QUANT IX offers on-line help throughout the program at the
users choice.

Data entry is done in a "fill in the blanks" method. All
fields which accept data are in Reverse video.

When you come to "Waiting", use the ENTER key to continue.




7










Getting started

You have RE-BOOTED your system as described above in the
Install section. Go the the QPE area (Drive A or QPE
subdirectory).From the operating system prompt enter:

QPE

The screen will clear and display our copyright notice. Since you
will be operating in the novice mode, wait until you see the main
menu for MASTPORT (notice upper left corner of screen).

Again, the Master Portfolio (MASTPORT) is the database that
stores all common data for the individual portfolios. The common
data need only be entered once to the MASTPORT and not repeatedly
to each portfolio in the system.

Other than the main menu, there are four other menus available.
They are:
PORTFOLIO MENU
SYMBOL MENU
REPORT MENU
UTILITY MENU

In-line help is available for each of these menus by selecting
that choice.

Change date command

To change the date

select #7

(Note that the command line at the top middle of the screen is
automatically filled with the entry used while in the expert
mode.)

The system date is the default value and can be changed by
over-typing the displayed date.


Change constants command

The quantitative valuation models used by QUANT IX require
several constant values. These are changed and updated by:


selecting #8

Advance the cursor to the field to be changed, enter the
update, then use the PG DN KEY (or the repeatedly) until you
return to the main menu.



8









Print list command

To print a hard copy of the records in a portfolio
(currently MASTPORT), make certain your printer is on-line and in
the compressed mode (or able to print 132 columns across).

select #1 access Portfolio Menu
select #1 packs and indexes
select #1 access Portfolio Menu
select #2 prints the records

Adding securities to the MASTPORT

NOTE: in order to add a symbol to any individual portfolio,

it must first be included in the MASTPORT.

To add a security to the MASTPORT follow these instructions:

select #2 access Symbol Menu
select #1 add a symbol

Enter the security symbol

IBM

You should now have a screen which needs with several blank
data fields. Fill in the blanks with the proper information,
then advance to the next field using the ENTER () KEY. The
following is a brief definition for each field with sample data
to enter for IBM.

Symbol: security ticker symbol. Enter IBM.
Name: name, description. Enter Int'l. Bus. Mach.
Date: todays date
Type: one of the following - U for US Governments, A
for Agencies, E for Tax Exempts, B for Corporate
Bonds, P for Preferred Stocks, F for Mutual
Funds, S for Common Stocks, X for Special.
Enter S.
Class: used for Type S and Type X. If Type S, then
either C for Cyclical Stock, E for Energy Stock,
G for Growth Stock, S for Stable Stock.
If Type X, then Class is X. These class are
used to show equity diversification on the
Summary Report. Enter G.
YEflag: Enter a "*" if fiscal year is different than
calendar year. IBM's fiscal year ends 12/31 so
leave blank.
Mktprice: current market price. Enter 160.
Div int/shr: current dividend per share or bond
coupon rate. Enter 3.65.




9








Earn/share: for equities only, earnings per share. Enter
10.
Beta: for equities only, beta factor. Enter 1.10.
Proj. div: for equities only, the 12mos. projected dividend
per share. Enter 4.
Proj. earn: for equities only, 12mos. projected earnings per
share. Enter 12.
Grow div: for equities only, the projected dividend growth
rate. Enter 20 (this is 20 percent).
Trailing p/e: for equities only, the trailing (lagging) p/e
ratio. Enter 14.

The following data items are found in a company's annual report -
the financial reports section. They apply to equities only, and
under normal circumstances are updated annually.

Truncation of zeros will be necessary, be careful to be
consistent.

Wrk cap: working capital from operations. Enter 6000.
Chg asset: calculate the net change (either positive or
negative) between the this year's current assets
and last year's. Enter 4200.
Chg cash: calculate the difference between this year's and
last year's cash and short term investments.
Enter 2200.
Chg liab: calculate the change in total current
liabilities between this and last year. Enter
1300.
Chg. debt: calculate the change in short term debt (due in
one year) between this and last year. Enter
300.
Cap exp: enter the amount of capital spending for this
year. Enter 4500.
Tot div: enter the amount of total dividends paid. Enter
700.

The last two items to be entered are:

Cfgro his: enter the percentage cash flow historically has
grow. Enter 11.
Cfgro fut: enter the expected future percentage growth in
cash flow. Enter 15.

You have now entered a security to the MASTPORT. Respond to the
yes/no question to either return to the Main Menu or to correct a
data entry error.

Changing an asset

To update the data in a security record

select #2 access Symbol Menu




10









select #2 change symbol

enter security symbol, use the ENTER () KEY to advance
to the field, make the change, then PG DN KEY to end of the
record. Respond yes or no to finish the change.

Deleting an asset

To remove an asset from the portfolio, follow these steps.
If you delete a record from the master portfolio, it must not be
still in any individual portfolio. In other words, if individual
portfolio A sells IBM, but individual portfolio B still owns IBM,
delete the record in individual portfolio A, not the MASTPORT.

select #2 access Symbol Menu
select #4 delete a symbol


enter the symbol you wish to delete. FOR THE SAKE OF THIS
TUTORIAL, DELETE THE SAME SYMBOL YOU ADDED ABOVE.

Respond to the delete question yes. You now have marked the


record to be deleted. The actual deletion occurs when you
institute the Pack command.

select #1 access Portfolio Menu
select #1 activate Pack command

QUANT IX will now delete the record and re-index the portfolio.


Setting up an individual portfolio

You have now explored the main commands used in the
MASTPORT. Now you will turn your attention to the individual
portfolio.

Individual portfolios are identified by a four letter code.
For example, ABCD portfolio becomes ABCDPORT in the program. The
individual portfolios contain all the specific portfolio
information such as purchase dates, number of shares, cost, etc.
(remember that the MASTPORT holds common data such as security
name, dividends per share, etc.).

To enter an individual portfolio:

select #9 change portfolio

enter the four character code. You should enter "TEST" to
gain access to the sample set up for this demonstration.




11









Notice the upper left hand corner of the screen. The
portfolio has been changed from MASTPORT to TESTPORT.

Displaying records in an individual portfolio

To display individual records, which are separated lot by
lot, use these steps.

select #2 access symbol menu
select #5 display symbol

enter the symbol "MO". The first of 3 different pages
comes up on the screen. Use the choices at the bottom to
move from page to page, go to the next security lot, or quit
and return to Main Menu.

Updating individual portfolios

After every change either to the model constants, MASTPORT
data items, or individual data items the portfolios need to be
update.

select #1 access Portfolio Menu
select #2 update portfolio

QUANT IX will now update and recalculate the valuation
models.

(You can update multiple portfolios by using the Update all
selection.)

Printing reports

After the portfolio has been updated, the reports can be
printed.

select #3 access Reports Menu

now select which reports you wish to print (make certain
your printer is on-line and set to print 132 columns).For
this demonstration,

select #7 prints common series
enter report headings

The reports will now print.

Setting up a new portfolio

To set up a new portfolio

select #1 access Portfolio Menu
select #1 add a portfolio



12









enter new prefix. Enter ABCD for now, then .

Changing portfolios

Now change to the new ABCDPORT.

select #9 change portfolio
enter "ABCD" access ABCDPORT

Notice the upper left portion of the screen which identifies
the current portfolio as ABCDPORT.

Adding assets to individual portfolio

Remember in order to add any security to an individual
portfolio it must have first been added to the master portfolio.
For this tutorial add "PG". Further assume that you have two
different purchases (lots) of PG with the following information:

100 shs. @ $40.00 per share on 02/01/83
100 shs. @ $45.00 per share on 10/02/84

Each lot is added separately to the program

select #2 access Symbol Menu
select #1 add symbol
enter PG for the symbol

Now enter the data for the first purchase. After you have
done so, repeat the process for the second lot of PG.

The lots are considered collectively on all the reports
except the Basis Report.

Deleting an asset

Now we know that the only asset in ABCDPORT is 200 shares of
Procter and Gamble, purchased in two 100 share lots. Let's
say that we sell 100 of those shares.

Select #2 access Symbol Menu

Now that you mark the record to be deleted.

Select #3 delete symbol
Enter symbol PG

QUANT IX will now display the first lot entered.(In this
case, also, the one we held the longest). We will answer
the questions with a 'N' because we want to delete only the
second 100 share lot. Type 'N' at the question.

Now the program shows us the second 100 share lot purchased



13









on 10/02/84. This is the lot we want to delete, so answer
the question with a 'Y'.


QUANT IX has now marked the 100 shares we want to delete.
Because we made a deletion we need to use the Pack command
in order to reorganize our ABCDPORT. We must always use the
Pack command after making deletions.

select #1 access Portfolio Menu
select #5 Pack portfolio

IMPORTANT!!! DO NOT TRY THE THIS NEXT INSTRUCTION WITHOUT ADDING
BACK THE 100 SHARES OF PROCTER AND GAMBLE YOU JUST DELETED.
SIMPLY GO BACK TO THE SECTION OFTHIS TUTORIALWHICH DISCUSSES
ADDING AN ASSET AND ADD BACK 100 SHARES OFF PROCTER AND GAMBLE TO
THIS PORTFOLIO.

You have now learned how to delete an asset from a new,
individual portfolio.

Changing assets in the individual portfolio

If you had sold 150 shares of PG instead of 100, you would
have changed the share number on the first lot using the Change
Command.

Select #2 access Symbol Menu
Select #2 change symbol
Enter Symbol PG


QUANT IX will ask you if you want to change this record.
(The first purchase of PG that you made.) At the bottom of
the screen, answer the question with a 'Y' and .

QUANT IX has indicated the only data fields that we can
change--Acquisition Date, Shares/Par and/or Cost. We don't
want to do anything to the Date, but we do want to make some
adjustments to the Shares and Cost data fields. Advance the
cursor to the Share/Par field.

Type 50 shares over the 100 share showing for the first lot.
and then .

We want to do this because 50 of those shares have been
sold. We also have to adjust the cost to reflect the sale.
To do this, we have to

Type 2000 over 4000 in the cost data field and then .

We want to do this because we sold 1/2 of the share in this
lot, so we have to also reduce our cost by 1/2.



14









QUANT IX now asks if this record is OK? Answer with 'Y'.

QUANT IX will now display the second lot of 100 shares.

Since you have SOLD this entire lot, there is nothing to
"CHANGE", so you MUST answer 'N' to the question. Now,
QUANT IX has directed you back to the Main Menu.

How do we take care of theother 100 shares sold? By using
the Delete Command.

Select #2 access Symbol Menu
Select #3 delete symbol
Enter symbol PG

QUANT IX will first show you the 50 share lot you just
changed. This one you want to keep, so answer the question
with 'N'.

Now the program will show you the second 100 share lot
purchased on 10/2/84. This is the one you want to Delete,
so answer the question with a 'Y'. You should now be back
at the Main Menu. Remember that you must use the Pack
command.

Select #1
Select #5

Other Commands to Try

Now that we have done a walk through, there are still a few
commands which have not been tried. Using the Help Options for
the appropriate menus and you will see these are self-
explanatory.


Security Search

While in the Main Menu for either the Master Portfolio or an
Individual Portfolio, a security search (cross reference) can be
initiated. This feature was designed to quickly find a
particular stock from a large number of portfolios.

Select #5

Enter the symbol PG. QUANT IX will find the security in all
the portfolios, print a report showing the detail of each
position, and return you to the main menu.








15









What if Command

The What If command can be initiated from the main menu of
either the MastPort or an Individual Portfolio.

Select #6

The cursor will now be flashing at the word Symbol. If the
security being tested is currently part of the MastPort, type the
ticker symbol over the word Symbol followed by blanks to
completely cover there rest of the field. to the end of page
1. You will be advanced to page 2. The screen displays the
current price projections using the unchanged data in
MastPort. to the end of the file in order to return to page
1. Now perform your What If test by changing any of the
variables. Advance again, with the to the end of the file
to display page 2. Page 2 reflects the new valuations resulting
form your test.

If you are testing a new security, (one that is not already
in your MastPort) the procedure is slightly different. After
selecting the What If option, the cursor will be flashing at the
word Symbol. Proceed to type the ticker symbol of the new
security over the word symbol followed by blanks to cover the
rest of the field. Since this security is not in the MASTPORT
you must enter data into each of the data fields in order to
perform the What IF test on the new security. Once the data
fields have been filled to end of the file. This will
advance you to page 2 where you can see the results of your NEW
security What If Test.

Finally, to print your results, follow the instructions
provided on the screen. When you are finished, place blanks over
the word Symbol. QUANT IX now erases all the data of the What If
test so as not to disturb your existing records. See chapter 1
for further details.


The Final Sign Off

There is only one more command you need to learn--the one
that takes you out of the operating system. However, before you
proceed with this command look to the screen for a special
message from the developers.

Select #0










16











Order Form

Please use this or a similar form when sending in your
registration fee.


TO: QUANT IX SOFTWARE
5900 N. PORT WASHINGTON ROAD
SUITE 142
MILWAUKEE, WISCONSIN 53217


FROM:
------------------------------------

------------------------------------

------------------------------------

------------------------------------


Please send me _____ QUANT IX PORTFOLIO EVALUATOR reference
manuals and registration numbers at $39.00 each.



____ @ $39.00 = _________

Wisconsin residents must add 5% sales tax = _________

Total Enclosed = _________



My payment is enclosed in the form of

_____ PERSONAL CHECK (please allow extra time for
delivery due to bank processing delays)

_____ MASTER CARD no. ____________________________

exp. __________________

_____ VISA CARD no. _____________________________

exp. ___________________







17