Essentials of investments / Zvi Bodie, Alex Kane, Alan J. Marcus.

Contents

Part ONE
Elements of Investments
Chapter 1 Investments: Background and Issues
1.1 Real Assets versus Financial Assets
1.2 A Taxonomy of Financial Assets
1.3 Financial Markets and the Economy
1.4 The Investment Process
1.5 Markets Are Competitive


Chapter 2 Financial markets and Instruments
2.1 The Money Market
2.2 The Bond Market
2.3 Equity Securities
2.4 Stock and Bond Market Indexes
2.5 Derivative Markets


Chapter 3 How Securities Are Traded
3.1 How Firms Issue Securities
3.2 Where Securities Are Traded
3.3 Trading on Exchanges
3.4 Trading on the OTC Market
3.5 Trading Costs
3.6 Buying on Margin


Chapter 4 Mutual Funds and Other Investment Companies
4.1 Investment Companies
4.2 Types of Investment Companies
4.3 Mutual Funds
4.4 Costs of Investing in Mutual Funds
4.5 Taxation of Mutual Fund Income
4.6 Exchange-Traded Funds

Chapter 5 Investors and the Investments process
5.1 Investors and Objectives
5.2 Investor constraints
Objectives and Constrains of various Investors, etc

Part TWO
Portfolio Theory
6 Risk and Return: Past and Prologue
6.1 Rates of Return
6.2 Risk and Risk Premiums
6.3 The Historical Record
6.4 Inflation and Real Rates of Return
6.5 Asset Allocation across Risky and Risk-Free Portfolios
6.6 Passive Strategies and the Capital Market Line


Chapter 6 Efficient Diversification
7.1 Diversification and Portfolio Risk
7.2 Asset Allocation with Two Risky Assets
7.3 The Optimal Risky Portfolio with a Risk-Free Asset
7.4 Efficient Diversification with Many Risky Assets
7.5 A Single-Factor Asset Market


Chapter 8 Capital Asset Pricing and Arbitrage Pricing Theory
8.1 The Capital Asset Pricing Model
8.2 The CAPM and Index Models
8.3 The CAPM and the Real World
8.4 The Arbitrage Pricing Theory


Chapter 9 The Efficient Market Hypothesis
9.1 Random Walks and the Efficient Market Hypothesis
9.2 Implications of the EMH
9.3 Are Markets Efficient?
9.4 Mutual Fund and Analyst Performance


Part THREE
Fixed- Income Securities
Chapter 10 Bond Prices and Yields
10.1 Bond Characteristics
10.2 Default Risk
10.3 Bond Pricing
10.4 Bond Yields
10.5 Bond Prices over Time


Chapter 11 Managing Bond Portfolios
11.1 Interest Rate Risk
11.2 Passive Bond Management
11.3 Convexity
11.4 Active Bond Management


Part FOUR
Security Analysis
Chapter 12 Macroeconomic and Industry Analysis
12.1 The Global Economy
12.2 The Domestic Macro economy
12.3 Interest Rates
12.4 Demand and Supply Shocks
12.5 Federal Government Policy


Chapter 13 Equity Valuation
13.1 Valuation by Com-parables
13.2 Intrinsic Value versus Market Price
13.3 Dividend Discount Models
13.4 Price?Earnings Ratios
13.5 Free Cash Flow Valuation Approaches


Chapter 14 Financial Statement Analysis
14.1 The Major Financial Statements
14.2 Accounting versus Economic Earnings
14.3 Profitability Measures
14.4 Ratio Analysis
14.5 Economic Value Added
14.6 An Illustration of Financial Statement Analysis

Chapter 15 Technical Analysis
15.1 Technical Analysis
15.2 Charting
15.3 Technical Indicators,etc.

Part FIVE
Derivative Markets: Options and Futures
16 Options Markets
16.1 The Option Contract
16.2 Values of Options at Expiration
163 Option like Securities
16.4 Exotic Options

Chapter 17 Option Valuation
17.1 Option Valuation: Introduction
17.2 Binomial Option Pricing
17.3 Black-Scholes Option Valuation
17.4 Using the Black-Scholes Formula
17.5 Empirical Evidence


Chapter 18 Futures Markets
18.1 The Futures Contract
18.2 Mechanics of Trading in Futures Markets
18.3 Futures Market Strategies
18.4 The Determination of Futures Prices
18.5 Financial Futures



Part SIX
Active Investment Management
Chapter 18 Performance Evaluation
19.1 Risk-Adjusted Returns
19.2 Style Analysis
19.3 Morningstar?s Risk-Adjusted Rating
19.4 Performance Attribution Procedures
19.5 The Lure of Active Management


Chapter 20 International Diversification
20.1 International Investments


21 Active Portfolio Management
21.1 The lure of active management
21.2 Objectives of active protfolio
21.3 Market Timing, etc.

Includes bibliographical Name indexes: p. 602-603, Subject index: p. 604-611