INVESTOMAT (C) by Peter Morant New York City, March 1, 1988



Purpose: INVESTOMAT is a family of programs that can be useful to

the institutional investor. The program has 4 major modules:



1) Black Scholes Option Valuation Model

2) Fair Market P/E Estimation Model

3) Dividend Discount / Capital Asset Pricing Model

4) Asset Allocation Model (Efficient Frontier)





The real value of INVESTOMAT is the Asset Allocation Model. The

major brokerage firms and the big pension funds make frequent use

of such models, but their computer programs are all

proprietary. There are a couple of commercial programs around,

but they are selling at prices beyond the reach of many of us.

INVESTOMAT will at least be able to give you a flavor of what

the 'big' guys are doing. The asset allocation model calculates

efficient portfolios by minimizing risk and maximizing return at

the same time. Please read the documentation for more details.





The Essentials:

INVESTOMAT has plenty of on line help available (F1 key), and it is

ready to run if you have at least the following files available:



INVESTOM.EXE (the main module)

COMB.EXE (prepares the data for the asset allocation model)

MODEL.EXE (the asset allocation model)

INVESTOM.HLP (the help file overlay)



INVESTOMAT will first check whether all of these four files are

available on the default drive. If one of them is missing, the

program will abort.



The distribution disk comes with some additional files, but none

of them is crucial because INVESTOMAT is able to reproduce them

in case they got lost. These files are:



INVESTOM.DEF (installation defaults)

DEFAULT.MPE (default data for P/E model)

DEFAULT.SPE (default data for P/E model)

DEFAULT.DIV (default data for Dividend Discount Model)

DEFAULT.INV (default data for Asset Allocation Model)





Finally, INVESTOMAT comes with three ASCII files:



README.1ST (this file)

INVESTOM.DOC (detailed documentation)

PACKING.LST (list of INVESTOMAT files)




















A Final Note



Do not send me any money.

You can contact me anytime at the Investment conference of

either of these boards:

MACHINE (212) 340-9666

SOUND OF MUSIC (516) 536-6819









Peter Morant

395 South End Ave., 30E

New York, NY 10280