,

Contents

Foreword

Acknowledgments

Introduction

Chapter 1: Market Organization and Structure

Learning Outcomes

1. Introduction

2. The Functions of the Financial System

3. Assets and Contracts

4. Financial Intermediaries

5. Positions

6. Orders

7. Primary Security Markets

8. Secondary Security Market and Contract Market Structures

9. Well-Functioning Financial Systems

10. Market Regulation

11. Summary

Problems

Chapter 2: Security Market Indices

Learning Outcomes

1. Introduction

2. Index Definition and Calculations of Value and Returns

3. Index Construction and Management

4. Uses of Market Indices

5. Equity Indices

6. Fixed-Income Indices

7. Indices for Alternative Investments

8. Summary

Problems

Chapter 3: Market Efficiency

Learning Outcomes

1. Introduction

2. The Concept of Market Efficiency

3. Forms of Market Efficiency

4. Market Pricing Anomalies

5. Behavioral Finance

6. Summary

Problems

Chapter 4: Portfolio Management: An Overview

Learning Outcomes

1. Introduction

2. A Portfolio Perspective on Investing

3. Investment Clients

4. Steps in the Portfolio Management Process

5. Pooled Investments

6. Summary

Problems

Chapter 5: Portfolio Risk and Return: Part I

Learning Outcomes

1. Introduction

2. Investment Characteristics of Assets

3. Risk Aversion and Portfolio Selection

4. Portfolio Risk

5. Efficient Frontier and Investor’s Optimal Portfolio

6. Summary

Problems

Chapter 6: Portfolio Risk and Return: Part II

Learning Outcomes

1. Introduction

2. Capital Market Theory

3. Pricing of Risk and Computation of Expected Return

4. The Capital Asset Pricing Model

5. Beyond the Capital Asset Pricing Model

6. Summary

Problems

Chapter 7: Basics of Portfolio Planning and Construction

Learning Outcomes

1. Introduction

2. Portfolio Planning

3. Portfolio Construction

4. Summary

Problems

Chapter 8: Overview of Equity Securities

Learning Outcomes

1.Introduction

2. Equity Securities in Global Financial Markets

3. Types and Characteristics of Equity Securities

4. Private Versus Public Equity Securities

5. Investing in Nondomestic Equity Securities

6. Risk and Return Characteristics of Equity Securities

7. Equity Securities and Company Value

8. Summary

Problems

Chapter 9: Introduction to Industry and Company Analysis

Learning Outcomes

1. Introduction

2. Uses of Industry Analysis

3. Approaches to Identifying Similar Companies

4. Industry Classification Systems

5. Describing and Analyzing an Industry

6. Company Analysis

7. Summary

Problems

Chapter 10: Equity Valuation: Concepts and Basic Tools

Learning Outcomes

1. Introduction

2. Estimated Value and Market Price

3. Major Categories of Equity Valuation Models

4. Present Value Models: The Dividend Discount Model

5. Multiplier Models

6. Asset-Based Valuation

7. Summary

Problems

Chapter 11: Equity Market Valuation

Learning Outcomes

1. Introduction

2. Estimating a Justified P/E Ratio

3. Top-Down and Bottom-Up Forecasting

4. Relative Value Models

5. Summary

Problems

Chapter 12: Technical Analysis

Learning Outcomes

1. Introduction

2. Technical Analysis: Definition and Scope

3. Technical Analysis Tools

4. Elliott Wave Theory

5. Intermarket Analysis

6. Summary

Problems

Glossary

References

About the Authors

Index