Understanding Investments

Size: px
Start display at page:

Download "Understanding Investments"

Transcription

1 Understanding Investments Theories and Strategies Nikiforos T. Laopodis j Routledge Taylor & Francis Croup NEW YORK AND LONDON

2 CONTENTS List of Illustrations Preface xxni xxix Parti Chapter 1 INVESTMENT BASICS The Investment Framework Chapter Objectives Introduction The General Financial and Economic Environment Definition of Investments The General Investment Environment Securities Classification of Securities Equity Securities Debt Securities Derivative Securities Types of Investors Financial Markets and Intermediaries The Roles of Financial Markets The Roles of Financial Intermediaries The Objectives and Constraints of Investors Objectives of Investors Constraints of Investors The Investment Management Process The Role of Investment Information vu

3 viii Contents Agency and Ethical Issues in Investing 13 Asymmetric Information 14 The Agent- Principal Problem 15 Ethics in the Marketplace 16 Social Responsibility 17 So Why Study Investments? 18 Chapter Summary 20 The Plan of the Textbook 21 Applying Economic Analysis ' - ~ ' 21 International Focus 22 Lessons of Our Times 23 Key Concepts 23 Questions and Problems 25 Chapter 2 The Investment Decision Process and Investment Strategies 26 Chapter Objectives 26 Introduction 26 The Investment Process 27 The Risk-Return Trade-Off ' 27 The Asset Allocation Step in the Investment Process 28 The Security Selection Step in the Investment Process 30 General Investment Philosophies and Strategies 31 Some Prominent Investment Philosophies 31 Harry Markowitz : 31 % Paul Samuelson 31 John Bogle 32 Warren Buffett 32 What Is Your Investment Philosophy? 34 Some Investment Strategies 35 Top-Down and Bottom-Up Approaches to Investing 35 Active and Passive Investment Strategies 37 Other Investment Strategies 39 Dollar-Cost Averaging 40 Margin Purchases and Short Sales 41 Margin Purchases 41 Short Sales 44 Types of Markets and Orders 45 Types of Trading Markets 45 Direct Market 45 Brokered Market 45 Dealer Market 46 Auction Market 46

4 Contents ix Types of Trading Orders 46 - Market Orders 46 Limit Order 46 Finding the Equilibrium Price of a Share 47 Chapter Summary 49 Applying Economic Analysis 50 International Focus 50 Lessons of Our Times ' 51 Key Concepts 51 Questions and Problems 53 Chapter 3 Fundamentals of Risk and Return 56 Chapter Objectives 56 Introduction 56 Measuring Return 56 Holding Period Return 57 Return over Multiple Periods 58 Arithmetic Mean 59 Geometric Mean. 59 The Effective Annual Rate 60 Yield Definitions and Conventions. 61 Real Rate of Return 61 Expected Rate of Return 63 Measuring Risk 64 Calculating the Risk of a Single Asset 64 Required Returns and Risk Aversion 68 Sources of Risk 69 Risk and Investor Economic Decisions 71 Utility and Risk Aversion 71 Chapter Summary 73 Applying Economic Analysis 74 International Focus 75 Lessons of Our Times, 75 Key Concepts 76 Questions and Problems 11 Appendix: A Brief Review of the Time Value of Money 78 Part II FINANCIAL MARKETS, INTERMEDIARIES, AND INSTRUMENTS Chapter 4 The Global Financial Environment 85 Chapter Objectives 85 Introduction 85 The Functions of the Global Financial Market 86

5 x Contents Economic Function 86 Pricing Function 86 Provision of Services 87 Other Functions 88 * The Securities Exchanges 89 US Organized Stock Exchanges 90 US Over-the-Counter Securities Markets 93 Some US Stock Market Indexes 95 Some International Stock Exchanges 95 The London Stock Exchange 96 The Tokyo Stock Exchange 97 The Prague Stock Exchange 97 The Brazilian Stock Exchange 97 The US Bond Market 97 The International Bond Market 98 Trading on the Exchanges 99 Clearing Procedures 99 Brokerage Services 99 Trading Costs ' 100 Automatic Trading Mechanisms 102 Globalization and Regulatory Structure of International Stock Markets 104 Globalization and Trends 104 Investing Internationally and International Return 105 Regulatory Structures in the US Exchanges 107 Chapter Summary 108 Applying Economic Analysis 108 International Focus 109 Lessons of Our Times 109 Key Concepts 110 Questions and Problems 111 Appendix: Calculating a Stock Market Index 113 Chapter 5 Money and Capital Market Instruments and Strategies 115 Chapter Objectives 115 Introduction 115 The Money Market and Its Instruments 116 The Money Market and Its Characteristics 116 Money Market Instruments 117 Nonmarketable Securities 117 Marketable Securities 117 Treasury Bill 117

6 Contents xi Commercial Paper Bankers' Acceptances Repurchase Agreements Federal Funds LIBOR Eurocurrency Yields and Spreads in Money Market Instruments The Capital Market and Its Instruments The Capital Market and Its Characteristics Fixed-Income Securities Government Bonds Municipal Securities Agency Bonds Corporate Bonds Yields and Spreads in Capital Market Instruments Equity Securities Derivative Securities Investment Risks in Financial Markets Some Investment Strategies Some Money Market Investment Strategies Deposit and Liability Management Strategy Market-Neutral Strategy Pairs-Trading Strategy Some Capital Market Investment Strategies Enhanced Cash Management Strategy Top-Down and/or Bottom-Up Strategies Chapter Summary Applying Economic Analysis International Focus Lessons of Our Times Key Concepts Questions and Problems Chapter 6 Investment Bankers and Investment Companies Chapter Objectives Introduction Investment Banking The Primary Market Shelf Registration The Investment Banker Initial Public Offering The Investment Companies Industrv

7 xii Contents Functions of Investment Companies Types of Investment Companies Unit Investment Trust Closed-End Investment Companies Open-End Investment Companies Money Market Mutual Funds Equity Funds Bond Funds Index Funds International Funds Balanced Funds Asset Allocation Funds Fee Structure of Mutual Funds Performance of the Mutual Fund Industry Other Types of Investment Companies Real Estate Investment Funds Hedge Funds Exchange-Traded Funds Some Strategies in Mutual Fund Investments Chapter Summary Applying Economic Analysis International Focus Lessons of Our Times Key Concepts Questions and Problems Part HI Chapter 7 PORTFOLIO THEORY Diversification and Asset Allocation Chapter Objectives Introduction The Diversification Principle Types of Diversification Naive or Random Diversification International Diversification Efficient Diversification Covariance and Correlation The Asset Allocation Decision The Process of Asset Allocation Some Approaches to Asset Allocation Implementing Asset Allocation Approaches Examples of Asset Allocation

8 Contents xiii Risky Portfolios and Combined Portfolios 197 Some Practical Problems for Asset Allocation 201 The Capital Allocation Line 202 Borrowing and Lending Opportunities on the CAL 204 The Capital Market Line and Investment Strategies 206 Asset Allocation and Risk Aversion 207 Some Common Diversification Fallacies 209 The Insurance Principle 209 Time Diversification Chapter Summary 211 Applying Economic Analysis 211 International Focus 212 Lessons of Our Times 213 Key Concepts 213 Questions and Problems 214 Appendix A: Review of Regression Analysis 216 Appendix B: How to Compute the Covariance and Correlation in Excel 219 Chapter 8 Efficient Diversification and Capital Market Theory 221 Chapter Objectives 221 Introduction 221 The Markowitz Diversification Approach 222 The Markowitz Two-Asset Portfolio : 222 % The Optimal Risky Portfolio and the Capital Allocation Line 227 The Efficient Frontier 230 Capital Market Theory 232 The Capital Asset Pricing Model 232 Assumptions of the CAPM 233 Implications of the Assumptions 233 Implication Implication Implication The Capital and Security Market Lines 236 Uses of CAPM 239 Criticism of CAPM 239 The Arbitrage Pricing Theory 240 Comparing the CAPM and the APT 243 Portfolio Performance Evaluation 244 CAPM, APT, and Investment Decisions 246 Chapter Summary 247 Applying Economic Analysis 248

9 xiv Contents t The 130/30 Strategy 249 Lessons of Our Times 250 Key Concepts 250 Questions and Problems 251 Appendix A: How to Find and Graph the Optimal Two-Asset Portfolio Using EXCEL 254 Appendix B: The Single-Index Model 256 Chapter 9 Market Efficiency and Behavioral Finance 261 Chapter Objectives 261 Introduction 261 The Efficient Market Hypothesis 262 The Notion of Market Efficiency 262 The Forms of Market Efficiency 263 Weak Form 264 Semistrong Form 264 Strong Form 264 Implications for the Efficient Market Hypothesis 264 Implications for Technical Analysis Implications for Fundamental Analysis 266 Implications for Active and Passive Investment Strategies 269 Implications for Investment Managers 271 Implications for Asset Pricing Models 271 Anomalies and Tests of Market Efficiency ; 272 * Market Anomalies 273 Return Patterns 273 Day-of-the-Week Effect 273 January Effect 274 Short- and Long-Horizon Returns 274 Size and P/E Effects 276 Announcement Effects 276 Other Effects 278 Summary of Market Efficiency Tests 278 Weak Form of Market Efficiency 278 Semi-strong Form of Market Efficiency 279 Strong Form of Market Efficiency 279 Is the Stock Market Efficient? 279 Behavioral Finance 280 Biases in Information Processing 283 Biases in Behavior 283 Models of Human Behavior 285 Implications for Technical Analysis 286

10 Contents xv Chapter Summary 287 Applying Economic Analysis 288 International Focus 288 Lessons of Our Times 289 Key Concepts 290 Questions and Problems 291 Part IV EQUITY PORTFOLIO MANAGEMENT Chapter 10 Equity and Fundamental Analysis 297 Chapter Objectives 297 Introduction 297 Equity Securities 298 Common Stock Characteristics 298 Shareholder Equity 298 Shareholder Rights 298 Voting Privileges 299 Types of Common Stock 300 Dividends and Splits ' 300 Preferred Stock Characteristics 302 Stock Market Quotations 303 Management of an Equity Portfolio 304 Passive Equity Portfolio Management 304 Individual Investors } 304 ' Institutional Investors 305 Active Equity Portfolio Management 308 Individual Investors 308 Institutional Investors 309 International Equity Investing 310 Fundamental Analysis 311 Macroeconomic Analysis 312 Macroeconomic Magnitudes 313 Economic Policies 314 The Business Cycle 318 Industry Analysis 322 Chapter Summary 325 Applying Economic Analysis 325 International Focus 326 Lessons of Our Times 328 Key Concepts 328 Questions and Problems 330 Appendix: Guidelines for Conducting Industry Analysis 331

11 xvi Contents Chapter 11 Equity Valuation and Investment Strategies 333 Chapter Objectives 333 Introduction 333 Equity Prices and Returns 333 t Some General Valuation Measures 337 Book Value 337 Price/Book Value 338 Price/Sales Value. 338 Liquidation Value ~ " 338 Replacement Value 339 The Dividend Discount Model and Its Variants 340 The Dividend Discount Model 340 The Constant Growth Model 342 The Multistage Dividend Growth Model 345 Using Earnings Instead of Dividends 346 Other Equity Valuation Techniques 352 Present Value of Free Cash Flows 352 Options Valuation Approach 353 Economic Profit 355 Other Issues in Equity Valuation 356 The Impact of Inflation on Stock Values 356 Information Signals/Content of Dividends 356 The P/E Ratio and the Stock Market 357 Some Strategies on When to Buy/Sell Equities > 361 < When to Buy/Sell a Stock 361 Chapter Summary 363 Applying Economic Analysis 364 International Focus 364 Lessons of Our Times 365 Key Concepts 366 Questions and Problems 367 PartV DEBT SECURITIES Chapter 12 Bond Fundamentals and Valuation 373 Chapter Objectives 373 Introduction 373 Overview of the Global Bond Market 374 The International Bond Market 374 The US Bond Market 375 Overview of Bond Basics 376 Features of a Bond 376

12 Contents xvii Bond Types and Characteristics 376. By Type of Issuer 376 Government Bonds 376 Other Government and Government-related Bonds 378 Corporate Bonds 382 International Bonds and Eurobonds 382 By Bond Feature 383 By Other Characteristics 384 Default Risk ' Bond Determinants and Covenants 385 Junk Bonds 385 Bond Pricing 386 Basic Bond Valuation Formulas 386 The Inverse Relationship between Prices and Yields 388 Bond Yield Measures 393 Current Yield 393 Yield to Maturity 393 Yield to Put 394 Yield to Call \ 395 Duration and Convexity 395 Duration 395 Convexity 399 The Yield Curve 400 Theories Explaining the Shape of the Yield Curve 401 ^ Market Expectations Theory 402 Liquidity Preference Theory 403 Market Segmentation Theory. 404 Preferred Habitat Theory 404 Significance of the Yield Curve 404 A Simple Strategy Using the Yield Curve 406 Chapter Summary 407 Applying Economic Analysis 408 International Focus ' 409 Lessons of Our Times 409 Key Concepts 410 Questions and Problems 411 Chapter 13 Bond Portfolio Management and Performance Evaluation 415 Chapter Objectives 415 Introduction 415 Overview of the Bond Invstment Management Process 416 Identification of Investor Objectives and Constraints 416

13 xviii Contents Establishment of Investment Policy 417 Selection of a Bond Portfolio Management Strategy 419 Monitoring and Evaluating Portfolio Performance 420 Passive Bond Investment Strategies 420 t Buy-and-Hold Portfolio Strategy 421 Indexing Bond Strategies 421 Pure Indexing Strategy 422 Enhanced Indexing Strategy 423 Immunization Strategy '~ ' 423 Rebalancing 425 Dedication Strategy 427 Active Bond Portfolio Strategies 428 Interest Rate-Anticipation Strategy 428 Credit Analysis 429 Valuation Analysis 429 Bond Swap Strategies 429 Substitution Swap ' 430 Yield Swap 431 Yield Curve Strategies 432 Horizon Analysis 433 Other Active Management Strategies 434 Horizon Matching Technique 434 Contingent Immunization 435 Bond Portfolio Performance Measurement and Evaluation 435 ' Bond Portfolio Performance Measures 436 The Arithmetic Average Rate of Return 436 The Geometric Rate of Return 436 The Dollar-Weighted Rate of Return 436 Bond Portfolio Performance Evaluation 437 Performance Attribution Analysis 438 Bond Market Efficiency and Portfolio Management 441 Chapter Summary 441 Applying Economic Analysis 442 International Focus 443 Lessons of Our Times 444 Key Concepts 445 Questions and Problems 446 Part VI DERIVATIVE MARKETS AND INSTRUMENTS Chapter 14 Options Markets and Valuation 451 Chapter Objectives 451 Introduction 451

14 Contents xix Chapter 15 An Overview of the Options Market Basic Option Concepts Call and Put Option Concepts Profits and Losses on Options Options Payoffs at Expiration The Market for Options The Options Clearing Corporation Option Market Participants Options Products ~ Securities with Options Some Option Trading Strategies Covered Call Protective Put Some Practical Issues Collar Straddle Married Put Spread Strategies Speculating with Options Option Valuation Fundamental Option Valuation Concepts Binomial Option Pricing The Black-Scholes-Merton Option Valuation Model Using the Black-Scholes-Merton Formula Put-Call Parity Formula Using Stock Index Options Chapter Summary Applying Economic Analysis International Focus Lessons of Our Times Key Concepts Questions and Problems Futures Markets and Strategies Chapter Objectives Introduction The Futures Contract Elements of Futures Contracts The Clearinghouse Settlement and Margin Reversing Trades An Overview of the Futures Market Economic Functions of the Futures Market

15 xx Contents Price Discovery 498.Risk Reduction 499 Hedging 499 Speculating 499 t Regulation of Futures Markets 500 International Futures Exchanges 502 The Commodity Futures Market 503 Futures and Spot Prices, 505 Spot Futures Parity " 505 Basis Risk 507 Financial Futures Contracts 508 Some Financial Futures Contracts 508 Stock Index Futures 508 Interest Rate Futures 509 Currency Futures 510 Some Useful Information on Financial Futures 512 S&P Futures versus Fair Value 512 Leverage 513 Futures Trading Strategies Hedging 514 Speculating 515 Program Trading and Index Arbitrage 515 Using Currency Futures 517 Arbitrage Trading : Chapter Summary 517 Applying Economic Analysis 518 International Focus 519 Lessons of Our Times 519 Key Concepts 520 Questions and Problems 521 Chapter 16 Other Topics in Investments 524 Chapter Objectives 524 Introduction 524 International Parities and Some Strategies 524 Useful Concepts 525 Interest Rate Parity 525 Carry Trade 526 International Arbitrage 527 Credit Derivatives 528 The Market for Credit Derivatives 529 Credit Default Swap 529

16 Contents xxi Total Return Swap 531 Asset Swap 533 CoUateralized Debt Obligation 533 Alternative Investments 536 { What Are Alternative Investments? 536 Real Estate Investment Trusts 537 Hedge Funds 538 Private Equity 539 Infrastructure Funds " 539 Other Alternative Investments 541 Putting It All Together 542 Chapter Summary 544 Applying Economic Analysis 544 International Focus 546 Lessons of Our Times 546 Key Concepts 547 Questions and Problems 548 Appendix \ 551 Index. 557

PRINCIPLES of INVESTMENTS

PRINCIPLES of INVESTMENTS PRINCIPLES of INVESTMENTS Boston University MICHAItL L D\if.\N Griffith University AN UP BASU Queensland University of Technology ALEX KANT; University of California, San Diego ALAN J. AAARCU5 Boston College

More information

Bond Evaluation, Selection, and Management

Bond Evaluation, Selection, and Management Bond Evaluation, Selection, and Management Second Edition R. STAFFORD JOHNSON WILEY John Wiley &c Sons, Inc. Contents Preface Acknowledgments xvii xxi PART OWE Bond Evaluation 1 CHAPTER 1 Overview of the

More information

Finance and Financial Markets

Finance and Financial Markets Finance and Financial Markets Second Edition Keith Pilbeam palgrave macmillan Brief contents 1 The world of finance 1 2 Financial intermediation and financial markets 22 3 Financial institutions 39 4 Monetary

More information

ESSENTIALS 0/ INVESTMENTS

ESSENTIALS 0/ INVESTMENTS ESSENTIALS 0/ INVESTMENTS Seventh Edition ZVI BODIE Boston University ALEX KANE University of California, San Diego ALAN J. MARCUS Boston College HOCHSCHULE LIECHTENSTEIN Bibliothek Boston Burr Ridge,

More information

POSSIBILITY CGIA CURRICULUM

POSSIBILITY CGIA CURRICULUM LIMITLESSPOSSIBILITY CGIA CURRICULUM CANDIDATES BODY OF KNOWLEDGE FOR 2017 ABOUT CGIA The Chartered Global Investment Analyst (CGIA) is the world s largest and recognized professional body providing approved

More information

HANDBOOK OF. Market Risk CHRISTIAN SZYLAR WILEY

HANDBOOK OF. Market Risk CHRISTIAN SZYLAR WILEY HANDBOOK OF Market Risk CHRISTIAN SZYLAR WILEY Contents FOREWORD ACKNOWLEDGMENTS ABOUT THE AUTHOR INTRODUCTION XV XVII XIX XXI 1 INTRODUCTION TO FINANCIAL MARKETS t 1.1 The Money Market 4 1.2 The Capital

More information

Certification Examination Detailed Content Outline

Certification Examination Detailed Content Outline Certification Examination Detailed Content Outline Certification Examination Detailed Content Outline Percentage of Exam I. FUNDAMENTALS 15% A. Statistics and Methods 5% 1. Basic statistical measures (e.g.,

More information

Portfolio Construction, Management, and Protection

Portfolio Construction, Management, and Protection Portfolio Construction, Management, and Protection Robert A. Strong, CFA University of Maine f SOUTH-WESTERN i» CENGAGE Learning- Australia Brazil Japan Korea Mexico Singapore Spain United Kingdom United

More information

Contemporary Financial Intermediation

Contemporary Financial Intermediation Contemporary Financial Intermediation Extended Contents Preface Acknowledgments About the Authors xv xix xxi PARTI THE BACKGROUND 1 A Friendly Conversation 3 Introduction 3 The Conversation: 1991 3 Follow-Up

More information

Global Securities & Investment Management Target Audience: Objectives:

Global Securities & Investment Management Target Audience: Objectives: Global Securities & Investment Management Target Audience: This course is focused at those who are seeking to acquire an overview of Finance, more specifically a foundation in capital markets, products,

More information

INTRODUCTION TO THE ECONOMICS AND MATHEMATICS OF FINANCIAL MARKETS. Jakša Cvitanić and Fernando Zapatero

INTRODUCTION TO THE ECONOMICS AND MATHEMATICS OF FINANCIAL MARKETS. Jakša Cvitanić and Fernando Zapatero INTRODUCTION TO THE ECONOMICS AND MATHEMATICS OF FINANCIAL MARKETS Jakša Cvitanić and Fernando Zapatero INTRODUCTION TO THE ECONOMICS AND MATHEMATICS OF FINANCIAL MARKETS Table of Contents PREFACE...1

More information

Financial Theory and Corporate Policy/ THIRD

Financial Theory and Corporate Policy/ THIRD Financial Theory and Corporate Policy/ THIRD EDITION THOMAS E COPELAND Professor of Finance University of California at Los Angeles Firm Consultant, Finance McKinsey & Company, Inc. J. FRED WESTON Cordner

More information

FUNDAMENTALS OF FUTURES AND OPTIONS MARKETS

FUNDAMENTALS OF FUTURES AND OPTIONS MARKETS SEVENTH EDITION FUNDAMENTALS OF FUTURES AND OPTIONS MARKETS GLOBAL EDITION John C. Hull / Maple Financial Group Professor of Derivatives and Risk Management Joseph L. Rotman School of Management University

More information

Learning takes you the extra mile. Rabobank Global Learning

Learning takes you the extra mile. Rabobank Global Learning Learning takes you the extra mile Rabobank Global Learning Release 38: 2016 FINANCIAL MARKETS COURSES Introduction to Financial Markets Financial Markets - An Introduction Money Markets - An Introduction

More information

CERTIFIED INVESTMENT MANAGEMENT ANALYST (CIMA ) CORE BODY OF KNOWLEDGE

CERTIFIED INVESTMENT MANAGEMENT ANALYST (CIMA ) CORE BODY OF KNOWLEDGE The CIMA Core Body of Knowledge spans five Knowledge Domains, each of which is divided into a number of Sections covering a range of Topics (shown on subsequent pages). KNOWLEDGE DOMAIN 1: FUNDAMENTALS

More information

FIXED INCOME SECURITIES

FIXED INCOME SECURITIES FIXED INCOME SECURITIES Valuation, Risk, and Risk Management Pietro Veronesi University of Chicago WILEY JOHN WILEY & SONS, INC. CONTENTS Preface Acknowledgments PART I BASICS xix xxxiii AN INTRODUCTION

More information

Financial Institutions and Markets 9TH EDITION

Financial Institutions and Markets 9TH EDITION Financial Institutions and Markets 9TH EDITION JEFF MADURA Florida Atlantic University, SOUTH-WESTERN 1 CENGAGE Learning- Australia Brazil Japan Korea Mexico Singapore Spain United Kingdom United State

More information

gement JEFF MADURA "Fldfida'J&lantic University .,. ;. O r> Ll.l K 1 i UNIVERSnAT LIECHTENSTEIN Blbllothett SOUTH-WESTERN CENGAGE Learning- " ^ si-

gement JEFF MADURA Fldfida'J&lantic University .,. ;. O r> Ll.l K 1 i UNIVERSnAT LIECHTENSTEIN Blbllothett SOUTH-WESTERN CENGAGE Learning-  ^ si- f f >' ' '^11 ABRIDGED 10TH EDITION gement JEFF MADURA "Fldfida'J&lantic University Ll.l K 1 i.,. ;. O r> UNIVERSnAT LIECHTENSTEIN Blbllothett /, " ^ si- -A- SOUTH-WESTERN CENGAGE Learning- Australia Brazil

More information

RE 9: Second Level Regulatory Examination: Securities And Instruments

RE 9: Second Level Regulatory Examination: Securities And Instruments COMPLIANCE MONITORING SYSTEMS CC RE 9: Second Level Regulatory Examination: Securities And Instruments Alan Holton December 2009 All representatives performing financial services in relation to category

More information

Statistics and Finance

Statistics and Finance David Ruppert Statistics and Finance An Introduction Springer Notation... xxi 1 Introduction... 1 1.1 References... 5 2 Probability and Statistical Models... 7 2.1 Introduction... 7 2.2 Axioms of Probability...

More information

EQUITIES & INVESTMENT ANALYSIS MAF307 EXAM SUMMARY

EQUITIES & INVESTMENT ANALYSIS MAF307 EXAM SUMMARY EQUITIES & INVESTMENT ANALYSIS MAF307 EXAM SUMMARY TOPIC 1 INVESTMENT ENVIRONMENT & FINANCIAL INSTRUMENTS 4 FINANCIAL ASSETS - INTANGIBLE 4 BENEFITS OF INVESTING IN FINANCIAL ASSETS 4 REAL ASSETS 4 CLIENTS

More information

KHAWAR-SIDDIQUE # 1 FINALTERM EXAMINATION 2010 FIN630-

KHAWAR-SIDDIQUE # 1 FINALTERM EXAMINATION 2010 FIN630- KHAWAR-SIDDIQUE Paper # 1 FINALTERM EXAMINATION Spring 2010 FIN630- Investment Analysis & Portfolio Management (Session - 4) Question No: 1 ( Marks: 1 ) - Please choose one A procedure for valuing the

More information

Overview of Concepts and Notation

Overview of Concepts and Notation Overview of Concepts and Notation (BUSFIN 4221: Investments) - Fall 2016 1 Main Concepts This section provides a list of questions you should be able to answer. The main concepts you need to know are embedded

More information

An Introduction to Derivatives and Risk Management, 7 th edition Don M. Chance and Robert Brooks. Table of Contents

An Introduction to Derivatives and Risk Management, 7 th edition Don M. Chance and Robert Brooks. Table of Contents An Introduction to Derivatives and Risk Management, 7 th edition Don M. Chance and Robert Brooks Table of Contents Preface Chapter 1 Introduction Derivative Markets and Instruments Options Forward Contracts

More information

Unit01. Introduction, Creation of Financial Assets, and Security Markets

Unit01. Introduction, Creation of Financial Assets, and Security Markets FCS 5510 Concept Review Notes: Unit01. Introduction, Creation of Financial Assets, and Security Markets Chapter 01. Definition of investment Portfolio Primary and secondary markets Value and valuation

More information

Frank J. Fabozzi, CFA

Frank J. Fabozzi, CFA SEVENTH EDITION Frank J. Fabozzi, CFA Professor in the Practice of Finance Yale School of Management Boston San Francisco New York London Toronto Sydney Tokyo Singapore Madrid Mexico City Munich Paris

More information

Join with us https://www.facebook.com/groups/caultimates/ Professional Course: Syllabus 2016

Join with us https://www.facebook.com/groups/caultimates/ Professional Course: Syllabus 2016 Syllabus Structure Module V Paper 14: Strategic Financial Management A Investment Decisions 35% D 30% A 35% B Financial Markets and 20% Institutions C Security Analysis and Portfolio 15% Management D Financial

More information

NINTH EDITION FUNDAMENTALS OF. John C. Hüll

NINTH EDITION FUNDAMENTALS OF. John C. Hüll NINTH EDITION FUNDAMENTALS OF FUTURES AND OPTIONS MARKETS John C. Hüll Maple Financial Group Professor of Derivatives and Risk Management Joseph L. Rotman School of Management University of Toronto PEARSON

More information

CFA Level III - LOS Changes

CFA Level III - LOS Changes CFA Level III - LOS Changes 2017-2018 Ethics Ethics Ethics Ethics Ethics Ethics Ethics Topic LOS Level III - 2017 (337 LOS) LOS Level III - 2018 (340 LOS) Compared 1.1.a 1.1.b 1.2.a 1.2.b 2.3.a 2.3.b 2.4.a

More information

2: ASSET CLASSES AND FINANCIAL INSTRUMENTS MONEY MARKET SECURITIES

2: ASSET CLASSES AND FINANCIAL INSTRUMENTS MONEY MARKET SECURITIES 2: ASSET CLASSES AND FINANCIAL INSTRUMENTS MONEY MARKET SECURITIES Characteristics. Short-term IOUs. Highly Liquid (Like Cash). Nearly free of default-risk. Denomination. Issuers Types Treasury Bills Negotiable

More information

CIS March 2012 Diet. Examination Paper 2.3: Derivatives Valuation Analysis Portfolio Management Commodity Trading and Futures.

CIS March 2012 Diet. Examination Paper 2.3: Derivatives Valuation Analysis Portfolio Management Commodity Trading and Futures. CIS March 2012 Diet Examination Paper 2.3: Derivatives Valuation Analysis Portfolio Management Commodity Trading and Futures Level 2 Derivative Valuation and Analysis (1 12) 1. A CIS student was making

More information

Market Risk Analysis Volume I

Market Risk Analysis Volume I Market Risk Analysis Volume I Quantitative Methods in Finance Carol Alexander John Wiley & Sons, Ltd List of Figures List of Tables List of Examples Foreword Preface to Volume I xiii xvi xvii xix xxiii

More information

Frank J. Fabozzi. Franco Modigliani. Yale School of Management. Sloan School of Management, Massachusetts Institute of Technology

Frank J. Fabozzi. Franco Modigliani. Yale School of Management. Sloan School of Management, Massachusetts Institute of Technology FOURTH EDITION Frank J. Fabozzi Yale School of Management Franco Modigliani Sloan School of Management, Massachusetts Institute of Technology v Frank J.Jones College of Business, San Jose State University

More information

Modern Public Economics

Modern Public Economics Modern Public Economics Second edition Raghbendra Jha B 366815 Routledge Taylor Si Francis Group LONDON AND NEW YORK Contents List of tables List of figures Preface Preface to the first edition xiv xv

More information

CORPORATE FINANCE: THE CORE

CORPORATE FINANCE: THE CORE CORPORATE FINANCE: THE CORE JONATHAN' BERK UNIVERSITY OF CALIFORNIA, BERKHI.EY PETER DEMARZO STANFORD UNIVE RSITY Boston San Francisco New York London Toronto Sydney Tokyo Singapore Madrid Mexico City

More information

Subject CT8 Financial Economics Core Technical Syllabus

Subject CT8 Financial Economics Core Technical Syllabus Subject CT8 Financial Economics Core Technical Syllabus for the 2018 exams 1 June 2017 Aim The aim of the Financial Economics subject is to develop the necessary skills to construct asset liability models

More information

Interest Rate Modeling

Interest Rate Modeling Chapman & Hall/CRC FINANCIAL MATHEMATICS SERIES Interest Rate Modeling Theory and Practice Lixin Wu CRC Press Taylor & Francis Group Boca Raton London New York CRC Press is an imprint of the Taylor & Francis

More information

Introduction to Risk Parity and Budgeting

Introduction to Risk Parity and Budgeting Chapman & Hall/CRC FINANCIAL MATHEMATICS SERIES Introduction to Risk Parity and Budgeting Thierry Roncalli CRC Press Taylor &. Francis Group Boca Raton London New York CRC Press is an imprint of the Taylor

More information

Foundations of Finance

Foundations of Finance Lecture 9 Lecture 9: Theories of the Yield Curve. I. Reading. II. Expectations Hypothesis III. Liquidity Preference Theory. IV. Preferred Habitat Theory. Lecture 9: Bond Portfolio Management. V. Reading.

More information

Contents. An Overview of Statistical Applications CHAPTER 1. Contents (ix) Preface... (vii)

Contents. An Overview of Statistical Applications CHAPTER 1. Contents (ix) Preface... (vii) Contents (ix) Contents Preface... (vii) CHAPTER 1 An Overview of Statistical Applications 1.1 Introduction... 1 1. Probability Functions and Statistics... 1..1 Discrete versus Continuous Functions... 1..

More information

Financial Analysis, Planning & Forecasting. Theory and Application. Alice C Lee. State Street Corp., USA. John C Lee. Center for PBBEF Research, USA

Financial Analysis, Planning & Forecasting. Theory and Application. Alice C Lee. State Street Corp., USA. John C Lee. Center for PBBEF Research, USA Financial Analysis, Planning & Forecasting Theory and Application Alice C Lee State Street Corp., USA John C Lee Center for PBBEF Research, USA Cheng F Lee Rutgers University, USA World Scientific NEW

More information

The Complete Guide to Portfolio Construction and Management

The Complete Guide to Portfolio Construction and Management The Complete Guide to Portfolio Construction and Management Liikasz Snopek A John Wiley and Sons, Ltd, Publication Contents Foreword About the Author Acknowledgements Introduction Xlll xv xvii xix PART

More information

Modeling Fixed-Income Securities and Interest Rate Options

Modeling Fixed-Income Securities and Interest Rate Options jarr_fm.qxd 5/16/02 4:49 PM Page iii Modeling Fixed-Income Securities and Interest Rate Options SECOND EDITION Robert A. Jarrow Stanford Economics and Finance An Imprint of Stanford University Press Stanford,

More information

Principles of Finance Summer Semester 2009

Principles of Finance Summer Semester 2009 Principles of Finance Summer Semester 2009 Natalia Ivanova Natalia.Ivanova@vgsf.ac.at Shota Migineishvili Shota.Migineishvili@univie.ac.at Syllabus Part 1 - Single-period random cash flows (Luenberger

More information

Management Accounting - Financial Strategy

Management Accounting - Financial Strategy PUBLISHING CIMA'S Official Leorning System Strategic Level Management Accounting - Financial Strategy John Ogilvie ELSEVIER AMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORD PARIS SAN DIEGO SAN FRANCISCO

More information

INV2601 DISCUSSION CLASS SEMESTER 2 INVESTMENTS: AN INTRODUCTION INV2601 DEPARTMENT OF FINANCE, RISK MANAGEMENT AND BANKING

INV2601 DISCUSSION CLASS SEMESTER 2 INVESTMENTS: AN INTRODUCTION INV2601 DEPARTMENT OF FINANCE, RISK MANAGEMENT AND BANKING INV2601 DISCUSSION CLASS SEMESTER 2 INVESTMENTS: AN INTRODUCTION INV2601 DEPARTMENT OF FINANCE, RISK MANAGEMENT AND BANKING Examination Duration of exam 2 hours. 40 multiple choice questions. Total marks

More information

Steven D. Dolvin, CFA Butler University

Steven D. Dolvin, CFA Butler University Seventh Edition Fundamentals of Investments VALUATION AND MANAGEMENT Bradford D. Jordan University of Kentucky Thomas W. Miller Jr. Mississippi State University Steven D. Dolvin, CFA Butler University

More information

Running Money. McGraw-Hill Irwin. Professional Portfolio Management. Scott D. Stewart, PhD, CFA. Christopher D. Piros, PhD, CFA

Running Money. McGraw-Hill Irwin. Professional Portfolio Management. Scott D. Stewart, PhD, CFA. Christopher D. Piros, PhD, CFA Running Money Professional Portfolio Management Scott D. Stewart, PhD, CFA Boston University Christopher D. Piros, PhD, CFA Boston University and Reykjavik University Jeffrey C. Heisler, PhD, CFA Venus

More information

COURSE 6 MORNING SESSION SECTION A WRITTEN ANSWER

COURSE 6 MORNING SESSION SECTION A WRITTEN ANSWER COURSE 6 SECTION A WRITTEN ANSWER COURSE 6: MAY 2001-1 - GO ON TO NEXT PAGE **BEGINNING OF COURSE 6** 1. (4 points) Describe the key features of: (i) (ii) (iii) (iv) Asian options Look-back options Interest

More information

Managing Financial Risk with Forwards, Futures, Options, and Swaps. Second Edition

Managing Financial Risk with Forwards, Futures, Options, and Swaps. Second Edition Managing Financial Risk with Forwards, Futures, Options, and Swaps Second Edition Managing Financial Risk with Forwards, Futures, Options, and Swaps Second Edition Fred R. Kaen Contents About This Course

More information

DEPARTMENT OF FINANCE. Undergraduate Courses Postgraduate Courses

DEPARTMENT OF FINANCE. Undergraduate Courses Postgraduate Courses DEPARTMENT OF FINANCE Undergraduate Courses Postgraduate Courses Undergraduate Courses: FINA 110 Fundamentals of Business Finance [3-0-0:3] For non-sb&m students. Introductory business finance. Topics

More information

National University of Singapore Dept. of Finance and Accounting. FIN 3120A: Topics in Finance: Fixed Income Securities Lecturer: Anand Srinivasan

National University of Singapore Dept. of Finance and Accounting. FIN 3120A: Topics in Finance: Fixed Income Securities Lecturer: Anand Srinivasan National University of Singapore Dept. of Finance and Accounting FIN 3120A: Topics in Finance: Fixed Income Securities Lecturer: Anand Srinivasan Course Description: This course covers major topics in

More information

DERIVATIVES AND RISK MANAGEMENT

DERIVATIVES AND RISK MANAGEMENT A IS 1! foi- 331 DERIVATIVES AND RISK MANAGEMENT RAJIV SRIVASTAVA Professor Indian Institute of Foreign Trade New Delhi QXJFORD UNIVERSITY PRKSS CONTENTS Foreword Preface 1. Derivatives An Introduction

More information

SOCIETY OF ACTUARIES EXAM IFM INVESTMENT AND FINANCIAL MARKETS EXAM IFM SAMPLE QUESTIONS AND SOLUTIONS DERIVATIVES

SOCIETY OF ACTUARIES EXAM IFM INVESTMENT AND FINANCIAL MARKETS EXAM IFM SAMPLE QUESTIONS AND SOLUTIONS DERIVATIVES SOCIETY OF ACTUARIES EXAM IFM INVESTMENT AND FINANCIAL MARKETS EXAM IFM SAMPLE QUESTIONS AND SOLUTIONS DERIVATIVES These questions and solutions are based on the readings from McDonald and are identical

More information

CHAPTER 14. Bond Characteristics. Bonds are debt. Issuers are borrowers and holders are creditors.

CHAPTER 14. Bond Characteristics. Bonds are debt. Issuers are borrowers and holders are creditors. Bond Characteristics 14-2 CHAPTER 14 Bond Prices and Yields Bonds are debt. Issuers are borrowers and holders are creditors. The indenture is the contract between the issuer and the bondholder. The indenture

More information

INTERNATIONAL FINANCIAL MARKETS

INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL FINANCIAL MARKETS Prices and Policies Richard M. Levich New York University Ш Irwin McGraw-Hill Boston, Massachusetts Burr Ridge, Illinois Dubuque, Iowa Madison, Wisconsin New York, New York

More information

CFA Level III - LOS Changes

CFA Level III - LOS Changes CFA Level III - LOS Changes 2016-2017 Ethics Ethics Ethics Ethics Ethics Ethics Ethics Ethics Topic LOS Level III - 2016 (332 LOS) LOS Level III - 2017 (337 LOS) Compared 1.1.a 1.1.b 1.2.a 1.2.b 2.3.a

More information

Jeffrey F. Jaffe Spring Semester 2011 Corporate Finance FNCE 100 Syllabus, page 1 of 8

Jeffrey F. Jaffe Spring Semester 2011 Corporate Finance FNCE 100 Syllabus, page 1 of 8 Corporate Finance FNCE 100 Syllabus, page 1 of 8 Spring 2011 Corporate Finance FNCE 100 Wharton School of Business Syllabus Course Description This course provides an introduction to the theory, the methods,

More information

Bond Prices and Yields

Bond Prices and Yields Bond Characteristics 14-2 Bond Prices and Yields Bonds are debt. Issuers are borrowers and holders are creditors. The indenture is the contract between the issuer and the bondholder. The indenture gives

More information

FINS2624: PORTFOLIO MANAGEMENT NOTES

FINS2624: PORTFOLIO MANAGEMENT NOTES FINS2624: PORTFOLIO MANAGEMENT NOTES UNIVERSITY OF NEW SOUTH WALES Chapter: Table of Contents TABLE OF CONTENTS Bond Pricing 3 Bonds 3 Arbitrage Pricing 3 YTM and Bond prices 4 Realized Compound Yield

More information

DETAILED CONTENTS. Preface...xxi. Part I The Healthcare Environment

DETAILED CONTENTS. Preface...xxi. Part I The Healthcare Environment DETAILED CONTENTS Preface...xxi Part I The Healthcare Environment Chapter 1. Introduction to Healthcare Financial Management...3 Learning Objectives...3 Introduction...3 How to Use This Book...4 The Role

More information

Paper 4. Fund Investment Consultant Examination. Thailand Securities Institute November 2014

Paper 4. Fund Investment Consultant Examination. Thailand Securities Institute November 2014 Fund Investment Consultant Examination Paper 4 Thailand Securities Institute November 2014 Copyright 2014, All right reserve Thailand Securities Institute (TSI) The Stock Exchange of Thailand Page 1 Paper

More information

palgrave Shipping Derivatives and Risk Management macmiuan Amir H. Alizadeh & Nikos K. Nomikos

palgrave Shipping Derivatives and Risk Management macmiuan Amir H. Alizadeh & Nikos K. Nomikos Shipping Derivatives and Risk Management Amir H. Alizadeh & Nikos K. Nomikos Faculty of Finance, Cass Business School, City University, London palgrave macmiuan Contents About the Authors. xv Preface and

More information

Portfolio Management Philip Morris has issued bonds that pay coupons annually with the following characteristics:

Portfolio Management Philip Morris has issued bonds that pay coupons annually with the following characteristics: Portfolio Management 010-011 1. a. Critically discuss the mean-variance approach of portfolio theory b. According to Markowitz portfolio theory, can we find a single risky optimal portfolio which is suitable

More information

MyE214: Global Securities Markets Dr. Sunil Parameswaran January Target Audience: Objectives:

MyE214: Global Securities Markets Dr. Sunil Parameswaran January Target Audience: Objectives: MyE214: Global Securities Markets Dr. Sunil Parameswaran January 4-15-2016 Target Audience: This course is focused at those who are seeking to acquire an overview of Finance, and more specifically a foundation

More information

Statistical Models and Methods for Financial Markets

Statistical Models and Methods for Financial Markets Tze Leung Lai/ Haipeng Xing Statistical Models and Methods for Financial Markets B 374756 4Q Springer Preface \ vii Part I Basic Statistical Methods and Financial Applications 1 Linear Regression Models

More information

List of Tables. Sr. No. Table

List of Tables. Sr. No. Table List of Tables 1 2.1 Salient features of Centuries on Derivatives. 14 2 2.2 Effect of Stock and Index Futures on Cash Stock Market 17 4 2.3 Effect of Stock and Index Options on Cash StockMarket 17 4 2.4

More information

AN INTRODUCTION TO GLOBAL FINANCIAL MARKETS. 8th edition. Stephen Valdez. & Philip Molyneux. laasaas palgrave

AN INTRODUCTION TO GLOBAL FINANCIAL MARKETS. 8th edition. Stephen Valdez. & Philip Molyneux. laasaas palgrave AN INTRODUCTION TO GLOBAL FINANCIAL MARKETS 8th edition Stephen Valdez & Philip Molyneux laasaas palgrave Contents List offigures ListofTables List ofboxes Preface Companion Website Acknowledgements Abbreviations

More information

INSTITUTE OF ACTUARIES OF INDIA

INSTITUTE OF ACTUARIES OF INDIA INSTITUTE OF ACTUARIES OF INDIA EXAMINATIONS 10 th November 2008 Subject CT8 Financial Economics Time allowed: Three Hours (14.30 17.30 Hrs) Total Marks: 100 INSTRUCTIONS TO THE CANDIDATES 1) Please read

More information

Forwards and Futures

Forwards and Futures Options, Futures and Structured Products Jos van Bommel Aalto Period 5 2017 Class 7b Course summary Forwards and Futures Forward contracts, and forward prices, quoted OTC. Futures: a standardized forward

More information

Capital Markets (FINC 950) DRAFT Syllabus. Prepared by: Phillip A. Braun Version:

Capital Markets (FINC 950) DRAFT Syllabus. Prepared by: Phillip A. Braun Version: Capital Markets (FINC 950) DRAFT Syllabus Prepared by: Phillip A. Braun Version: 6.29.16 Syllabus 2 Capital Markets and Personal Investing This course develops the key concepts necessary to understand

More information

SECOND EDITION. MARY R. HARDY University of Waterloo, Ontario. HOWARD R. WATERS Heriot-Watt University, Edinburgh

SECOND EDITION. MARY R. HARDY University of Waterloo, Ontario. HOWARD R. WATERS Heriot-Watt University, Edinburgh ACTUARIAL MATHEMATICS FOR LIFE CONTINGENT RISKS SECOND EDITION DAVID C. M. DICKSON University of Melbourne MARY R. HARDY University of Waterloo, Ontario HOWARD R. WATERS Heriot-Watt University, Edinburgh

More information

Investment Symposium March I7: Impact of Economic Crisis on OTC Derivatives Markets for Insurers. Moderator Frank Zhang

Investment Symposium March I7: Impact of Economic Crisis on OTC Derivatives Markets for Insurers. Moderator Frank Zhang Investment Symposium March 2010 I7: Impact of Economic Crisis on OTC Derivatives Markets for Insurers Naveed Choudri Sean Huang John Wiesner Moderator Frank Zhang UFS Economic Crisis Impact on Derivative

More information

Corporate Finance (Honors) Finance 100 Sections 301 and 302 The Wharton School, University of Pennsylvania Fall 2010

Corporate Finance (Honors) Finance 100 Sections 301 and 302 The Wharton School, University of Pennsylvania Fall 2010 Corporate Finance (Honors) Finance 100 Sections 301 and 302 The Wharton School, University of Pennsylvania Fall 2010 Course Description The purpose of this course is to introduce techniques of financial

More information

Fuel Hedging. Management. Strategien for Airlines, Shippers, VISHNU N. GAJJALA

Fuel Hedging. Management. Strategien for Airlines, Shippers, VISHNU N. GAJJALA Fuel Hedging andrisk Management Strategien for Airlines, Shippers, and Other Consumers S. MOHAMED DAFIR VISHNU N. GAJJALA WlLEY Contents Preface Acknovuledgments Almut the Aiithors xiii xix xxi CHAPTER

More information

Table of Contents. Part I. Deterministic Models... 1

Table of Contents. Part I. Deterministic Models... 1 Preface...xvii Part I. Deterministic Models... 1 Chapter 1. Introductory Elements to Financial Mathematics.... 3 1.1. The object of traditional financial mathematics... 3 1.2. Financial supplies. Preference

More information

Money and Capital Markets

Money and Capital Markets Money and Capital Markets Financial Institutions and Instruments in a Global Marketplace C 254264 PART1 The Global Financial System in Perspective 1 1 Functions and Roles of the Financial System in the

More information

Nepalese Financial System. and. Investment Environment. Narayan Prasad Paudel. Ratna Pustak Bhandar. Kathmandu, Nepal

Nepalese Financial System. and. Investment Environment. Narayan Prasad Paudel. Ratna Pustak Bhandar. Kathmandu, Nepal Nepalese Financial System and Investment Environment Narayan Prasad Paudel Ratna Pustak Bhandar Kathmandu, Nepal CONTENT. Chapter 1 Nepalese Financial System 1-62 Financial System and Economic Development

More information

Core competence framework

Core competence framework Short version EIP European Investment Practitioner Core competence framework Version 2016 1 EUROPEAN INVESTMENT PRACTITIONER (EIP) EFPA Level 2 10 days classroom equivalent EQF Level 4 MODULE TOPIC DURATION

More information

ABOUT THE SERIES 65 EXAM ABOUT THIS BOOK ABOUT THE TEST BANK ABOUT THE SECURITIES INSTITUTE OF AMERICA CHAPTER 1 EQUITY SECURITIES 1

ABOUT THE SERIES 65 EXAM ABOUT THIS BOOK ABOUT THE TEST BANK ABOUT THE SECURITIES INSTITUTE OF AMERICA CHAPTER 1 EQUITY SECURITIES 1 Contents ABOUT THE SERIES 65 EXAM XXI ABOUT THIS BOOK XXV ABOUT THE TEST BANK XXVII ABOUT THE SECURITIES INSTITUTE OF AMERICA XXIX CHAPTER 1 EQUITY SECURITIES 1 What Is a Security? 1 Equity = Stock 2 Common

More information

ADVANCED ASSET PRICING THEORY

ADVANCED ASSET PRICING THEORY Series in Quantitative Finance -Vol. 2 ADVANCED ASSET PRICING THEORY Chenghu Ma Fudan University, China Imperial College Press Contents List of Figures Preface Background Organization and Content Readership

More information

Options Markets: Introduction

Options Markets: Introduction 17-2 Options Options Markets: Introduction Derivatives are securities that get their value from the price of other securities. Derivatives are contingent claims because their payoffs depend on the value

More information

Controllers Guide to Multinational Financial Management Chapter 1:

Controllers Guide to Multinational Financial Management Chapter 1: Controllers Guide to Multinational Financial Management Chapter 1: The What and Why of Multinational Finance 1. Recognize some special features of a multinational corporation (MNC). 2. Distinguish the

More information

About the Author I-5 Acknowledgement I-7 Preface to the Ninth Edition I-9 Chapter-heads I-11 Solved Paper CA Final May 2016 I-25

About the Author I-5 Acknowledgement I-7 Preface to the Ninth Edition I-9 Chapter-heads I-11 Solved Paper CA Final May 2016 I-25 Contents About the Author I-5 Acknowledgement I-7 Preface to the Ninth Edition I-9 Chapter-heads I-11 Solved Paper CA Final May 2016 I-25 1 FINANCIAL POLICY AND CORPORATE STRATEGY 1.1 Financial Management

More information

Jeffrey F. Jaffe Spring Semester 2015 Corporate Finance FNCE 100 Syllabus, page 1. Spring 2015 Corporate Finance FNCE 100 Wharton School of Business

Jeffrey F. Jaffe Spring Semester 2015 Corporate Finance FNCE 100 Syllabus, page 1. Spring 2015 Corporate Finance FNCE 100 Wharton School of Business Corporate Finance FNCE 100 Syllabus, page 1 Spring 2015 Corporate Finance FNCE 100 Wharton School of Business Syllabus Course Description This course provides an introduction to the theory, the methods,

More information

INTEREST RATE SWAP POLICY

INTEREST RATE SWAP POLICY INTEREST RATE SWAP POLICY I. INTRODUCTION The purpose of this Interest Rate Swap Policy (Policy) of the Riverside County Transportation Commission (RCTC) is to establish guidelines for the use and management

More information

Capital Markets (FINC 950) Introduction. Prepared by: Phillip A. Braun Version:

Capital Markets (FINC 950) Introduction. Prepared by: Phillip A. Braun Version: Capital Markets (FINC 950) Introduction Prepared by: Phillip A. Braun Version: 6.26.17 Syllabus 2 Introduction to the Capital Markets Class The capital markets class provides a structure for thinking about

More information

Taxation of Derivatives. Oktavia Weidmann. Qß, Wolters Kluwer Law & Business

Taxation of Derivatives. Oktavia Weidmann. Qß, Wolters Kluwer Law & Business Taxation of Derivatives Oktavia Weidmann Qß, Wolters Kluwer Law & Business About the Author Preface Reference Sources and Effective Date Acknowledgements List of Abbreviations v xvii xix xxi xxiii CHARTER

More information

Come & Join Us at VUSTUDENTS.net

Come & Join Us at VUSTUDENTS.net Come & Join Us at VUSTUDENTS.net For Assignment Solution, GDB, Online Quizzes, Helping Study material, Past Solved Papers, Solved MCQs, Current Papers, E-Books & more. Go to http://www.vustudents.net and

More information

Holding(s) in Company - London Stock Exchange

Holding(s) in Company - London Stock Exchange Page 1 of 5 Regulatory Story Go to market news section Company TIDM Headline Released HUM Holding(s) in Company 16:03 16-Dec-2010 1281Y16 RNS : 1281Y 16 December 2010 TR-1: NOTIFICATION OF MAJOR INTEREST

More information

From Financial Engineering to Risk Management. Radu Tunaru University of Kent, UK

From Financial Engineering to Risk Management. Radu Tunaru University of Kent, UK Model Risk in Financial Markets From Financial Engineering to Risk Management Radu Tunaru University of Kent, UK \Yp World Scientific NEW JERSEY LONDON SINGAPORE BEIJING SHANGHAI HONG KONG TAIPEI CHENNAI

More information

List of tables List of boxes List of screenshots Preface to the third edition Acknowledgements

List of tables List of boxes List of screenshots Preface to the third edition Acknowledgements Table of List of figures List of tables List of boxes List of screenshots Preface to the third edition Acknowledgements page xii xv xvii xix xxi xxv 1 Introduction 1 1.1 What is econometrics? 2 1.2 Is

More information

Figure 14.1 Per Share Earnings and Dividends of the S&P500 Index. III. Figure 14.2 Aggregate Dividends and Repurchases for All U.S.

Figure 14.1 Per Share Earnings and Dividends of the S&P500 Index. III. Figure 14.2 Aggregate Dividends and Repurchases for All U.S. I. The Basics of Payout Policy: A. The term payout policy refers to the decisions that a firm makes regarding whether to distribute cash to shareholders, how much cash to distribute, and the means by which

More information

Before and After Book COR1-GB Foundations of Finance

Before and After Book COR1-GB Foundations of Finance Before and After Book For COR1-GB.2311 Foundations of Finance William L. Silber Homepage: www.stern.nyu.edu/~wsilber Fall 2017 Contents of This Pamphlet For each topic in the syllabus this pamphlet provides:

More information

Financial Markets. Audencia Business School 22/09/2016 1

Financial Markets. Audencia Business School 22/09/2016 1 Financial Markets Table of Contents S4FIN581 - VALUATION TECHNIQUES S4FIN582 - PORTFOLIO MANAGEMENT S4FIN583 - MODULE OF SPECIALIZATION S4FIN584 - ADVANCED FINANCIAL ANALYSIS S4FIN585 - DERIVATIVES VALUATION

More information

Asset Pricing and Portfolio. Choice Theory SECOND EDITION. Kerry E. Back

Asset Pricing and Portfolio. Choice Theory SECOND EDITION. Kerry E. Back Asset Pricing and Portfolio Choice Theory SECOND EDITION Kerry E. Back Preface to the First Edition xv Preface to the Second Edition xvi Asset Pricing and Portfolio Puzzles xvii PART ONE Single-Period

More information

Page. Preface I-5 Acknowledgement I-9 Syllabus I-11 Chapter-heads I-15. Contents. Page

Page. Preface I-5 Acknowledgement I-9 Syllabus I-11 Chapter-heads I-15. Contents. Page Contents Preface I-5 Acknowledgement I-9 Syllabus I-11 Chapter-heads I-15 1 INVESTMENTS : AN OVERVIEW Learning Outcomes 1 1.1 Investment 2 1.2 Financial Investment vs. Real Investment 2 1.3 Objectives

More information

Syllabus for Capital Markets (FINC 950) Prepared by: Phillip A. Braun Version:

Syllabus for Capital Markets (FINC 950) Prepared by: Phillip A. Braun Version: Syllabus for Capital Markets (FINC 950) Prepared by: Phillip A. Braun Version: 1.15.19 Class Overview Syllabus 3 Main Questions the Capital Markets Class Will Answer This class will focus on answering

More information

Financial Decisions and Markets: A Course in Asset Pricing. John Y. Campbell. Princeton University Press Princeton and Oxford

Financial Decisions and Markets: A Course in Asset Pricing. John Y. Campbell. Princeton University Press Princeton and Oxford Financial Decisions and Markets: A Course in Asset Pricing John Y. Campbell Princeton University Press Princeton and Oxford Figures Tables Preface xiii xv xvii Part I Stade Portfolio Choice and Asset Pricing

More information

Capital Markets (FINC 950) Syllabus. Prepared by: Phillip A. Braun Version:

Capital Markets (FINC 950) Syllabus. Prepared by: Phillip A. Braun Version: Capital Markets (FINC 950) Syllabus Prepared by: Phillip A. Braun Version: 4.4.18 Syllabus 2 Questions this Class Will Answer This class will focus on answering this main question: What is the best (optimal)

More information