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Investments: Principles of Portfolio and Equity Analysis

Book Description

A comprehensive guide to investment analysis and portfolio management by an expert team from the CFA Institute

In a world of specialization, no other profession likely requires such broad, yet in-depth knowledge than that of financial analyst. Financial analysts must not only possess a broad understanding of the financial markets-including structure, organization, efficiency, portfolio management, risk and return, and planning and construction-but they must also have a strong sense of how to evaluate industries and companies prior to engaging in an analysis of a specific stock. Investments: Principles of Portfolio and Equity Analysis provides the broad-based knowledge professionals and students of the markets need to manage money and maximize return. The book

  • Details market structure and functions, market anomalies, secondary market basics, and regulation

  • Describes investment assets and asset classes, types of positions and orders, as well as forecasting methodologies

  • Discusses return and risk characteristics, portfolio diversification and management, the basics of both technical analysis and major technical indicators, and much more

  • A companion Workbook, which includes learning outcomes, summary overviews, and problems and solutions sections is available and sold separately

Investments provides readers unparalleled access to the best in professional quality information on investment analysis and portfolio management.

Table of Contents

  1. Cover
  2. Title
  3. Copyright
  4. Contents
  5. Foreword
  6. Acknowledgments
  7. Introduction
  8. Chapter 1: Market Organization and Structure
    1. Learning Outcomes
    2. 1. Introduction
    3. 2. The Functions of the Financial System
    4. 3. Assets and Contracts
    5. 4. Financial Intermediaries
    6. 5. Positions
    7. 6. Orders
    8. 7. Primary Security Markets
    9. 8. Secondary Security Market and Contract Market Structures
    10. 9. Well-Functioning Financial Systems
    11. 10. Market Regulation
    12. 11. Summary
    13. Problems
  9. Chapter 2: Security Market Indices
    1. Learning Outcomes
    2. 1. Introduction
    3. 2. Index Definition and Calculations of Value and Returns
    4. 3. Index Construction and Management
    5. 4. Uses of Market Indices
    6. 5. Equity Indices
    7. 6. Fixed-Income Indices
    8. 7. Indices for Alternative Investments
    9. 8. Summary
    10. Problems
  10. Chapter 3: Market Efficiency
    1. Learning Outcomes
    2. 1. Introduction
    3. 2. The Concept of Market Efficiency
    4. 3. Forms of Market Efficiency
    5. 4. Market Pricing Anomalies
    6. 5. Behavioral Finance
    7. 6. Summary
    8. Problems
  11. Chapter 4: Portfolio Management: An Overview
    1. Learning Outcomes
    2. 1. Introduction
    3. 2. A Portfolio Perspective on Investing
    4. 3. Investment Clients
    5. 4. Steps in the Portfolio Management Process
    6. 5. Pooled Investments
    7. 6. Summary
    8. Problems
  12. Chapter 5: Portfolio Risk and Return: Part I
    1. Learning Outcomes
    2. 1. Introduction
    3. 2. Investment Characteristics of Assets
    4. 3. Risk Aversion and Portfolio Selection
    5. 4. Portfolio Risk
    6. 5. Efficient Frontier and Investor’s Optimal Portfolio
    7. 6. Summary
    8. Problems
  13. Chapter 6: Portfolio Risk and Return: Part II
    1. Learning Outcomes
    2. 1. Introduction
    3. 2. Capital Market Theory
    4. 3. Pricing of Risk and Computation of Expected Return
    5. 4. The Capital Asset Pricing Model
    6. 5. Beyond the Capital Asset Pricing Model
    7. 6. Summary
    8. Problems
  14. Chapter 7: Basics of Portfolio Planning and Construction
    1. Learning Outcomes
    2. 1. Introduction
    3. 2. Portfolio Planning
    4. 3. Portfolio Construction
    5. 4. Summary
    6. Problems
  15. Chapter 8: Overview of Equity Securities
    1. Learning Outcomes
    2. 1.Introduction
    3. 2. Equity Securities in Global Financial Markets
    4. 3. Types and Characteristics of Equity Securities
    5. 4. Private Versus Public Equity Securities
    6. 5. Investing in Nondomestic Equity Securities
    7. 6. Risk and Return Characteristics of Equity Securities
    8. 7. Equity Securities and Company Value
    9. 8. Summary
    10. Problems
  16. Chapter 9: Introduction to Industry and Company Analysis
    1. Learning Outcomes
    2. 1. Introduction
    3. 2. Uses of Industry Analysis
    4. 3. Approaches to Identifying Similar Companies
    5. 4. Industry Classification Systems
    6. 5. Describing and Analyzing an Industry
    7. 6. Company Analysis
    8. 7. Summary
    9. Problems
  17. Chapter 10: Equity Valuation: Concepts and Basic Tools
    1. Learning Outcomes
    2. 1. Introduction
    3. 2. Estimated Value and Market Price
    4. 3. Major Categories of Equity Valuation Models
    5. 4. Present Value Models: The Dividend Discount Model
    6. 5. Multiplier Models
    7. 6. Asset-Based Valuation
    8. 7. Summary
    9. Problems
  18. Chapter 11: Equity Market Valuation
    1. Learning Outcomes
    2. 1. Introduction
    3. 2. Estimating a Justified P/E Ratio
    4. 3. Top-Down and Bottom-Up Forecasting
    5. 4. Relative Value Models
    6. 5. Summary
    7. Problems
  19. Chapter 12: Technical Analysis
    1. Learning Outcomes
    2. 1. Introduction
    3. 2. Technical Analysis: Definition and Scope
    4. 3. Technical Analysis Tools
    5. 4. Elliott Wave Theory
    6. 5. Intermarket Analysis
    7. 6. Summary
    8. Problems
  20. Glossary
  21. References
  22. About the Authors
  23. About the CFA Program
  24. Index