Investments: Analysis and Management / Edition 11

Investments: Analysis and Management / Edition 11

by Charles P. Jones
     
 

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ISBN-10: 0470477121

ISBN-13: 9780470477120

Pub. Date: 10/27/2009

Publisher: Wiley

Whether you're making investments in your personal life or future career, Jones' Investments, Ninth Edition will guide you through this exciting and fast-paced field. You'll learn how to identify successful investment opportunities, anticipate and deal with investment problems and controversies, and ultimately, make wise investment decisions. Bring real-world content

Overview

Whether you're making investments in your personal life or future career, Jones' Investments, Ninth Edition will guide you through this exciting and fast-paced field. You'll learn how to identify successful investment opportunities, anticipate and deal with investment problems and controversies, and ultimately, make wise investment decisions. Bring real-world content into your course with Business Extra. Business Extra Select enables instructors to add copyright-cleared articles, cases, and readings from such leading business resources as Insead, Ivey and Harvard Business School Cases, Fortune, The Economist, The Wall Street Journal, and more.

Product Details

ISBN-13:
9780470477120
Publisher:
Wiley
Publication date:
10/27/2009
Edition description:
Older Edition
Pages:
640
Product dimensions:
7.90(w) x 10.00(h) x 0.90(d)

Table of Contents

Part 1Background
1Understanding Investments1
The Nature of Investments3
The Importance of Studying Investments4
Understanding the Investment Decision Process8
Important Considerations in the Investment Decision Process for Today's Investors12
Organizing the Text19
Summary20
Appendix 1-AThe Chartered Financial Analyst (CFA) Program22
2Investment Alternatives24
Organizing Financial Assets25
Nonmarketable Financial Assets26
Money Market Securities28
Fixed-Income Securities29
Equity Securities38
Derivative Securities43
Summary47
Appendix 2-ATaxes and Investing50
3Indirect Investing51
Investing Indirectly53
What Is an Investment Company?55
Types of Investment Companies56
Major Types of Mutual Funds59
The Mechanics of Investing Indirectly65
Investment Company Performance69
Investing Internationally Through Investment Companies74
Exchange-Traded Funds (ETFs)75
The Future of Indirect Investing78
Summary79
Appendix 3-AObtaining Information on Investment Companies
4Securities Markets82
The Importance of Financial Markets83
The Primary Markets83
The Secondary Markets86
U.S. Securities Markets for the Trading of Equities86
The Changing Securities Markets106
The Globalization of Securities Markets107
Summary108
Appendix 4-AStock Market Indexes
5How Securities Are Traded111
Brokerage Transactions112
How Orders Work118
Investor Protection in the Securities Markets123
Margin127
Short Sales130
Summary133
Appendix 5-AThe Details of Margin Accounts137
Part 2Portfolio and Capital Market Theory
6The Returns and Risks from Investing139
Return140
Risk142
Measuring Returns144
Taking a Global Perspective150
Measuring Risk155
Realized Returns and Risks from Investing159
Summary163
7Portfolio Theory172
Dealing with Uncertainty173
Portfolio Return and Risk176
Analyzing Portfolio Risk178
Modern Portfolio Theory (MPT)181
Measuring Comovements in Security Returns182
Calculating Portfolio Risk186
Efficient Portfolios191
Summary193
8Portfolio Selection199
Building a Portfolio Using Markowitz Principles200
Alternative Methods of Obtaining the Efficient Frontier206
Selecting Optimal Asset Classes--The Asset Allocation Decision210
The Impact of Diversification on Risk213
The Implications of the Markowitz Portfolio Model215
Summary216
9Asset Pricing Models220
Capital Market Theory221
The Equilibrium Return-Risk Tradeoff224
Estimating the SML232
Tests of the CAPM235
Arbitrage Pricing Theory236
Some Conclusions About Asset Pricing240
Summary240
Part 3Common Stocks: Analysis, Valuation, and Management
10Common Stock Valuation248
Discounted Cash-Flow Techniques249
Relative Valuation Techniques263
Which Approach to Use?270
Bursting the Bubble on New Economy Stocks--A Lesson in Valuation271
Some Final Thoughts on Valuation272
Summary272
Appendix 10-AThe Constant-Growth Version of the Dividend Discount Model280
Appendix 10-BThe Analysis and Valuation of Preferred Stock
11Common Stocks: Analysis and Strategy282
Taking a Global Perspective283
Analyzing Some Important Issues Involving Common Stocks284
Building Stock Portfolios287
The Passive Strategy288
The Active Strategy291
Approaches for Analyzing and Selecting Stocks302
A Framework for Fundamental Analysis304
Summary309
12Market Efficiency312
The Concept of an Efficient Market313
Evidence on Market Efficiency318
Implications of the Efficient Market Hypothesis325
Evidence of Market Anomalies327
Some Conclusions About Market Efficiency336
Summary338
Part 4Security Analysis
13Economy/Market Analysis342
Taking a Global Perspective343
Assessing the Economy344
Understanding the Stock Market351
Making Market Forecasts355
Summary364
Appendix 13-APublished Information About the Economy--Government Publications
14Sector/Industry Analysis368
What Is an Industry?369
The Importance of Industry/Sector Analysis370
Analyzing Sectors/Industries374
Using Sector/Industry Analysis as an Investor378
Summary382
Appendix 14-ASources of Industry Information
15Company Analysis386
Fundamental Analysis387
The Accounting Aspects of Earnings388
Analyzing a Company's Profitability400
Earnings Estimates403
The P/E Ratio408
Fundamental Security Analysis in Practice411
Summary415
Appendix 15-ASources of Information for Common Stocks
16Technical Analysis423
What Is Technical Analysis?424
Stock Price and Volume Techniques427
Technical Indicators437
Testing Technical Analysis Strategies440
The Ebb and Flow of Technical Analysis441
Some Conclusions About Technical Analysis442
Summary444
Part 5Fixed-Income Securities: Analysis, Valuation, and Management
17Bond Yields and Prices448
Bond Yields449
Bond Prices458
Bond Price Changes460
Summary470
Appendix 17-AConvertible Bonds
18Bonds: Analysis and Strategy477
Why Buy Bonds?478
Important Considerations in Managing a Bond Portfolio480
Bond Strategies488
Building a Fixed-Income Portolio496
Summary500
Part 6Derivative Securities
19Options504
Why Have Derivative Securities?505
Introduction505
Understanding Options507
Payoffs and Profits from Basic Option Positions511
Some Basic Options Strategies515
Option Valuation522
An Investor's Perspective on Puts and Calls530
Stock-Index Options532
Summary535
Appendix 19-ASpreads and Combinations
Appendix 19-BWarrants
20Futures540
Understanding Futures Markets541
The Structure of Futures Markets544
The Mechanics of Trading545
Using Futures Contracts548
Financial Futures550
Summary561
Appendix 20-AFutures Options
Part 7Investment Management
21Portfolio Management565
Portfolio Management as a Process566
Formulate an Appropriate Investment Policy569
Determine and Quantify Capital Market Expectations574
Developing and Implementing Investing Strategies578
Monitor Market Conditions and Investor Circumstances580
Rebalancing the Portfolio581
Performance Measurement583
Summary583
22Evaluation of Investment Performance587
Framework for Evaluating Portfolio Performance588
Return and Risk Considerations592
Risk-Adjusted Measures of Performance594
Problems with Portfolio Measurement602
Other Issues in Performance Evaluation603
Summary604
Glossary611
Interest Tables619
Index629

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