This text focuses on the comparison of efficient and inefficient markets from the viewpoint of an experienced portfolio manager. This approach covers not only the fundamentals of portfolio management - financial, securities markets, and investment management techniques, including financial engineering - but also how these techniques are applied by professional investors. It is unsurpassed in its ability to bridge between theory and application by using articles from the financial media as well as real-world mini-cases to illustrate concepts. A strong problem-solving approach is supported through many solved sample problems and practice boxes throughout the text, and through strong end-of-chapter problems and cases which use real world information and data to give students the opportunity to apply what they've learned to solving real problems.
New edition of a text devoted to the three main issues involved in investment analysis in the capital markets, i.e. security selectivity (security valuation models), portfolio diversification (the portfolio composition of the selected securities), and dynamic assets allocation of stocks, bonds, and cash. Twenty-five chapters discuss the investment environment, return and risk, expanding the portfolio universe, efficient markets and portfolio performance, security analysis, and options, futures, and financial engineering. Annotation c. Book News, Inc., Portland, OR (booknew.com)
I. THE INVESTMENT ENVIRONMENT. 1. Introduction. 2. Bonds, Stocks, and Other Financial Securities. 3. Security Markets. 4. Regulation and Ethics. II. RETURN AND RISK. 5. Calculating Rates of Return. 6. Foundation of Risk Analysis. 7. Portfolio Mean and Variance. 8. The Gain From Portfolio Diversification. 9. International Investment. III. EQUILIBRIUM PRICE DETERMINATION AND PERFORMANCE MEASUREMENT. 10. Risk and Return: The Linear Relationships and the CAPM. 11. Index Models and the Arbitrage Pricing Theory. 12. Efficient Markets: Theory and Empirical Evidence. 13. Technical Analysis. 14. Investment Companies and Mutual Funds. 15. Performance Measurement. IV. SECURITY ANALYSIS. 16. Interest Rates and Bond Valuation. 17. Bonds - Analysis and Management. 18. Common Stocks - Valuation. 19. Common Stock Selection. 20. Market and Industry Analysis. 21. Financial Statement Analysis. V. OPTIONS, FUTURES, AND FINANCIAL ENGINEERING. 22. Options - Basics and Strategies. 23. Valuing Stock Options. 24. Futures. 25. Financial Engineering.