| |
| |
| Background | |
| |
| |
| Understanding Investments | |
| |
| |
| The Nature of Investments | |
| |
| |
| The Importance of Studying Investments | |
| |
| |
| Understanding the Investment Decision Process | |
| |
| |
| Important Considerations in the Investment Decision Process for Today's Investors | |
| |
| |
| Organizing the Text | |
| |
| |
| Summary | |
| |
| |
| The Chartered Financial Analyst (CFA) Program | |
| |
| |
| Investment Alternatives | |
| |
| |
| Organizing Financial Assets | |
| |
| |
| Nonmarketable Financial Assets | |
| |
| |
| Money Market Securities | |
| |
| |
| Fixed-Income Securities | |
| |
| |
| Equity Securities | |
| |
| |
| Derivative Securities | |
| |
| |
| Summary | |
| |
| |
| Taxes and Investing | |
| |
| |
| Indirect Investing | |
| |
| |
| Investing Indirectly | |
| |
| |
| What Is an Investment Company? | |
| |
| |
| Types of Investment Companies | |
| |
| |
| Major Types of Mutual Funds | |
| |
| |
| The Mechanics of Investing Indirectly | |
| |
| |
| Investment Company Performance | |
| |
| |
| Investing Internationally Through Investment Companies | |
| |
| |
| Exchange-Traded Funds (ETFs) | |
| |
| |
| The Future of Indirect Investing | |
| |
| |
| Summary | |
| |
| |
| Obtaining Information on Investment Companies | |
| |
| |
| Securities Markets | |
| |
| |
| The Importance of Financial Markets | |
| |
| |
| The Primary Markets | |
| |
| |
| The Secondary Markets | |
| |
| |
| U.S. Securities Markets for the Trading of Equities | |
| |
| |
| The Changing Securities Markets | |
| |
| |
| The Globalization of Securities Markets | |
| |
| |
| Summary | |
| |
| |
| Stock Market Indexes | |
| |
| |
| How Securities Are Traded | |
| |
| |
| Brokerage Transactions | |
| |
| |
| How Orders Work | |
| |
| |
| Investor Protection in the Securities Markets | |
| |
| |
| Margin | |
| |
| |
| Short Sales | |
| |
| |
| Summary | |
| |
| |
| The Details of Margin Accounts | |
| |
| |
| Portfolio and Capital Market Theory | |
| |
| |
| The Returns and Risks from Investing | |
| |
| |
| Return | |
| |
| |
| Risk | |
| |
| |
| Measuring Returns | |
| |
| |
| Taking a Global Perspective | |
| |
| |
| Measuring Risk | |
| |
| |
| Realized Returns and Risks from Investing | |
| |
| |
| Summary | |
| |
| |
| Portfolio Theory | |
| |
| |
| Dealing with Uncertainty | |
| |
| |
| Portfolio Return and Risk | |
| |
| |
| Analyzing Portfolio Risk | |
| |
| |
| Modern Portfolio Theory (MPT) | |
| |
| |
| Measuring Comovements in Security Returns | |
| |
| |
| Calculating Portfolio Risk | |
| |
| |
| Efficient Portfolios | |
| |
| |
| Summary | |
| |
| |
| Portfolio Selection | |
| |
| |
| Building a Portfolio Using Markowitz Principles | |
| |
| |
| Alternative Methods of Obtaining the Efficient Frontier | |
| |
| |
| Selecting Optimal Asset Classes--The Asset Allocation Decision | |
| |
| |
| The Impact of Diversification on Risk | |
| |
| |
| The Implications of the Markowitz Portfolio Model | |
| |
| |
| Summary | |
| |
| |
| Asset Pricing Models | |
| |
| |
| Capital Market Theory | |
| |
| |
| The Equilibrium Return-Risk Tradeoff | |
| |
| |
| Estimating the SML | |
| |
| |
| Tests of the CAPM | |
| |
| |
| Arbitrage Pricing Theory | |
| |
| |
| Some Conclusions About Asset Pricing | |
| |
| |
| Summary | |
| |
| |
| Common Stocks: Analysis, Valuation, and Management | |
| |
| |
| Common Stock Valuation | |
| |
| |
| Discounted Cash-Flow Techniques | |
| |
| |
| Relative Valuation Techniques | |
| |
| |
| Which Approach to Use? | |
| |
| |
| Bursting the Bubble on New Economy Stocks--A Lesson in Valuation | |
| |
| |
| Some Final Thoughts on Valuation | |
| |
| |
| Summary | |
| |
| |
| The Constant-Growth Version of the Dividend Discount Model | |
| |
| |
| The Analysis and Valuation of Preferred Stock | |
| |
| |
| Common Stocks: Analysis and Strategy | |
| |
| |
| Taking a Global Perspective | |
| |
| |
| Analyzing Some Important Issues Involving Common Stocks | |
| |
| |
| Building Stock Portfolios | |
| |
| |
| The Passive Strategy | |
| |
| |
| The Active Strategy | |
| |
| |
| Approaches for Analyzing and Selecting Stocks | |
| |
| |
| A Framework for Fundamental Analysis | |
| |
| |
| Summary | |
| |
| |
| Market Efficiency | |
| |
| |
| The Concept of an Efficient Market | |
| |
| |
| Evidence on Market Efficiency | |
| |
| |
| Implications of the Efficient Market Hypothesis | |
| |
| |
| Evidence of Market Anomalies | |
| |
| |
| Some Conclusions About Market Efficiency | |
| |
| |
| Summary | |
| |
| |
| Security Analysis | |
| |
| |
| Economy/Market Analysis | |
| |
| |
| Taking a Global Perspective | |
| |
| |
| Assessing the Economy | |
| |
| |
| Understanding the Stock Market | |
| |
| |
| Making Market Forecasts | |
| |
| |
| Summary | |
| |
| |
| Published Information About the Economy--Government Publications | |
| |
| |
| Sector/Industry Analysis | |
| |
| |
| What Is an Industry? | |
| |
| |
| The Importance of Industry/Sector Analysis | |
| |
| |
| Analyzing Sectors/Industries | |
| |
| |
| Using Sector/Industry Analysis as an Investor | |
| |
| |
| Summary | |
| |
| |
| Sources of Industry Information | |
| |
| |
| Company Analysis | |
| |
| |
| Fundamental Analysis | |
| |
| |
| The Accounting Aspects of Earnings | |
| |
| |
| Analyzing a Company's Profitability | |
| |
| |
| Earnings Estimates | |
| |
| |
| The P/E Ratio | |
| |
| |
| Fundamental Security Analysis in Practice | |
| |
| |
| Summary | |
| |
| |
| Sources of Information for Common Stocks | |
| |
| |
| Technical Analysis | |
| |
| |
| What Is Technical Analysis? | |
| |
| |
| Stock Price and Volume Techniques | |
| |
| |
| Technical Indicators | |
| |
| |
| Testing Technical Analysis Strategies | |
| |
| |
| The Ebb and Flow of Technical Analysis | |
| |
| |
| Some Conclusions About Technical Analysis | |
| |
| |
| Summary | |
| |
| |
| Fixed-Income Securities: Analysis, Valuation, and Management | |
| |
| |
| Bond Yields and Prices | |
| |
| |
| Bond Yields | |
| |
| |
| Bond Prices | |
| |
| |
| Bond Price Changes | |
| |
| |
| Summary | |
| |
| |
| Convertible Bonds | |
| |
| |
| Bonds: Analysis and Strategy | |
| |
| |
| Why Buy Bonds? | |
| |
| |
| Important Considerations in Managing a Bond Portfolio | |
| |
| |
| Bond Strategies | |
| |
| |
| Building a Fixed-Income Portolio | |
| |
| |
| Summary | |
| |
| |
| Derivative Securities | |
| |
| |
| Options | |
| |
| |
| Why Have Derivative Securities? | |
| |
| |
| Introduction | |
| |
| |
| Understanding Options | |
| |
| |
| Payoffs and Profits from Basic Option Positions | |
| |
| |
| Some Basic Options Strategies | |
| |
| |
| Option Valuation | |
| |
| |
| An Investor's Perspective on Puts and Calls | |
| |
| |
| Stock-Index Options | |
| |
| |
| Summary | |
| |
| |
| Spreads and Combinations | |
| |
| |
| Warrants | |
| |
| |
| Futures | |
| |
| |
| Understanding Futures Markets | |
| |
| |
| The Structure of Futures Markets | |
| |
| |
| The Mechanics of Trading | |
| |
| |
| Using Futures Contracts | |
| |
| |
| Financial Futures | |
| |
| |
| Summary | |
| |
| |
| Futures Options | |
| |
| |
| Investment Management | |
| |
| |
| Portfolio Management | |
| |
| |
| Portfolio Management as a Process | |
| |
| |
| Formulate an Appropriate Investment Policy | |
| |
| |
| Determine and Quantify Capital Market Expectations | |
| |
| |
| Developing and Implementing Investing Strategies | |
| |
| |
| Monitor Market Conditions and Investor Circumstances | |
| |
| |
| Rebalancing the Portfolio | |
| |
| |
| Performance Measurement | |
| |
| |
| Summary | |
| |
| |
| Evaluation of Investment Performance | |
| |
| |
| Framework for Evaluating Portfolio Performance | |
| |
| |
| Return and Risk Considerations | |
| |
| |
| Risk-Adjusted Measures of Performance | |
| |
| |
| Problems with Portfolio Measurement | |
| |
| |
| Other Issues in Performance Evaluation | |
| |
| |
| Summary | |
| |
| |
| Glossary | |
| |
| |
| Interest Tables | |
| |
| |
| Index | |