Fundamentals of Investments was written to: 1. Focus on students as investment managers, giving them information they can act on instead of concentrating on theories and research without the proper context. 2. Offer strong, consistent pedagogy, including a balanced, unified treatment of the main types of financial investments as mirrored in the investment world. 3. Organize topics in a way that makes them easy to apply--whether to a portfolio simulation or to real life--and support these topics with hands-on activities. The approach of this text reflects two central ideas. First, there is a consistent focus on the student as an individual investor or investments manager. Second, a consistent, unified treatment of the four basic types of financial instruments--stocks, bonds, options, and futures--focusing on their characteristics and features, their risks and returns, and the markets in which they trade.
Table of contents:
PART ONE: Introduction 1 A Brief History of Risk and Return 2 Buying and Selling Securities 3 Security Types 4 Mutual Funds PART TWO: Stock Markets 5 The Stock Market 6 Common Stock Valuation 7 Earnings and Cash Flow Analysis 8 Stock Price Behavior and Market Efficiency PART THREE: Interest Rates and Bond Valuation 9 Interest Rates 10 Bond Prices and Yields PART FOUR: Portfolio 11 Diversification and Asset Allocation 12 Return, Risk, and the Security Market Line 13 Performance Evaluation and Risk Management PART FIVE: Options and Futures 14 Stock Options 15 Option Valuation 16 Futures Contracts PART SIX: Topics in Investments 17 Corporate Bonds 18 Government Bonds 19 Mortgage-Backed Securities Appendixes A Answers to Test Your Investment Quotient Questions B Answers to Selected Questions and Problems Index
Table of contents:
PART ONE: Introduction 1 A Brief History of Risk and Return 2 Buying and Selling Securities 3 Security Types 4 Mutual Funds PART TWO: Stock Markets 5 The Stock Market 6 Common Stock Valuation 7 Earnings and Cash Flow Analysis 8 Stock Price Behavior and Market Efficiency PART THREE: Interest Rates and Bond Valuation 9 Interest Rates 10 Bond Prices and Yields PART FOUR: Portfolio 11 Diversification and Asset Allocation 12 Return, Risk, and the Security Market Line 13 Performance Evaluation and Risk Management PART FIVE: Options and Futures 14 Stock Options 15 Option Valuation 16 Futures Contracts PART SIX: Topics in Investments 17 Corporate Bonds 18 Government Bonds 19 Mortgage-Backed Securities Appendixes A Answers to Test Your Investment Quotient Questions B Answers to Selected Questions and Problems Index