Portfolio Construction, Management, and Protection

✍ Scribed by Robert A. Strong

• Publisher: Cengage Learning
• Year: 2008
• Tongue: English
• Leaves: 721
• Edition: 5
• Category: Library

✦ Synopsis

Learn the details of traditional investment as well as portfolio theory with the straightforward, manageable approach found in Strong's successful PORTFOLIO CONSTRUCTION, MANAGEMENT, AND PROTECTION, 5E. You'll learn how to save time and money as this applications-oriented book guides you from theory to practice. You'll see the small and large investor in action as unique topics introduce you to fiduciary duty, investment policy, and other subjects not found in other texts. References throughout the book to material covered in the CFA exam and questions drawn from the CFA exam help you prepare for testing and professional success.

✦ Table of Contents

Front Cover......Page 1
Title Page......Page 2
Copyright......Page 3
Summary of Contents......Page 5
CONTENTS......Page 6
PREFACE......Page 14
PART ONE: Background, Basic Principles, and Investment Policy......Page 18
Introduction......Page 20
Part One: Background, Basic Principles, and Investment Policy......Page 22
Part Two: Portfolio Construction......Page 25
Part Three: Portfolio Management......Page 26
Part Four: Portfolio Protection and Contemporary Issues......Page 28
INTERNET EXERCISE......Page 29
Introduction......Page 31
Valuation......Page 32
Safe Dollars and Risky Dollars......Page 34
Relationship Between Risk and Return......Page 40
The Concept of Return......Page 47
Some Statistical Facts of Life......Page 53
SUMMARY......Page 65
QUESTIONS......Page 66
PROBLEMS......Page 67
INTERNET EXERCISES......Page 69
FURTHER READING......Page 70
Introduction......Page 71
Why Setting Objectives Can Be Difficult......Page 72
Portfolio Objectives......Page 74
The Importance of Primary and Secondary Objectives......Page 81
Other Factors to Consider in Establishing Objectives......Page 82
Portfolio Dedication......Page 85
SUMMARY......Page 87
QUESTIONS......Page 88
PROBLEMS......Page 89
INTERNET EXERCISES......Page 91
FURTHER READING......Page 92
APPENDIX: Mutual Fund Evaluation Term Project......Page 93
Introduction......Page 101
The Purpose of Investment Policy......Page 102
Elements of a Useful Investment Policy......Page 109
Risk and Return Considerations: Different Investors......Page 114
Critiquing and Revising the Investment Policy Statement......Page 118
QUESTIONS......Page 120
PROBLEMS......Page 121
FURTHER READING......Page 129
APPENDIX: Sample Statements of Investment Policy......Page 130
PART TWO: Portfolio Construction......Page 148
Introduction......Page 150
Linear Combinations......Page 151
Single-Index Model......Page 157
Multi-Index Model......Page 160
Carrying Your Eggs in More Than One Basket......Page 165
Role of Uncorrelated Securities......Page 167
Lessons from Evans and Archer......Page 180
Diversification and Beta......Page 184
Capital Asset Pricing Model......Page 185
Equity Risk Premium......Page 188
Using a Scatter Diagram to Measure Beta......Page 189
Arbitrage Pricing Theory......Page 192
APPENDIX: Stochastic Dominance......Page 204
Introduction......Page 216
Why International Diversification Makes Theoretical Sense......Page 217
Foreign Exchange Risk......Page 221
Investments in Emerging Markets......Page 234
Political Risk......Page 244
Other Topics Related to International Diversification......Page 248
Role of the Capital Markets......Page 257
Efficient Market Hypothesis......Page 260
Anomalies......Page 270
Introduction......Page 283
Dividends and Why They Really Do Not Matter......Page 284
Investment Styles......Page 297
Categories of Stock......Page 305
The Stock Price as a Present Value......Page 313
Changes in the Stock Price and Relative Valuation......Page 319
Why Screening Is Necessary......Page 325
What Constitutes a Good Screen?......Page 327
Screening Processes......Page 328
Library Information......Page 336
Internet Resources......Page 339
Introduction......Page 346
Review of Bond Principles......Page 347
Bond Pricing and Returns......Page 351
Bond Risk......Page 363
The Meaning of Bond Diversification......Page 371
Choosing Bonds......Page 372
Example: Monthly Retirement Income......Page 376
Introduction......Page 389
Real Estate in General......Page 390
Timberland in Particular......Page 393
Real Estate Investment Trusts......Page 403
Types of Real Estate Value......Page 404
Gold......Page 405
Infrastructure......Page 417
Hedge Funds......Page 420
Commodities......Page 424
Private Equity......Page 425
Opportunistic Real Estate......Page 427
PART THREE: Portfolio Management......Page 430
Active Management versus Passive Management......Page 432
Tactical Asset Allocation......Page 443
When Do You Sell Stock?......Page 452
Passive versus Active Management Strategies......Page 461
Bond Convexity (Advanced Topic)......Page 470
Introduction......Page 482
Option Principles......Page 483
Option Pricing......Page 490
Using Options to Generate Income......Page 506
Combined Hedging/Income Generation Strategies......Page 522
Multiple Portfolio Managers......Page 525
Importance of Measuring Portfolio Risk......Page 530
Traditional Performance Measures......Page 534
Dollar-Weighted and Time-Weighted Rates of Return......Page 544
Performance Evaluation with Cash Deposits and Withdrawals......Page 545
Performance Evaluation When Options Are Used......Page 550
Introduction......Page 561
History......Page 562
Fiduciary Duties......Page 567
Emerging Areas......Page 572
PART FOUR: Portfolio Protection and Emerging Topics......Page 584
Introduction......Page 586
Futures Contracts......Page 587
Market Mechanics......Page 590
The Clearing Process......Page 596
Principles of Futures Contract Pricing......Page 600
Foreign Currency Futures......Page 604
Using Options......Page 609
Using Futures Contracts......Page 615
Dynamic Hedging......Page 623
Interest-Rate Futures Contracts......Page 631
Concept of Immunization......Page 638
Setting the Stage......Page 652
Meeting an Income Constraint......Page 657
Risk Management......Page 659
Managing Cash Drag......Page 668
Exchange-Traded Funds......Page 673
Security Analyst Objectivity......Page 674
Stock Lending......Page 675
Certificateless Trading......Page 681
Proxy Voting......Page 682
Role of Derivative Assets......Page 683
Islamic Finance......Page 684
Principles-based versus Rules-based Financial Oversight......Page 685
The Chartered Financial Analyst Program......Page 686
Regulation Fair Disclosure......Page 690
GLOSSARY......Page 696
INDEX......Page 714

✦ Subjects

Финансово-экономические дисциплины;Деньги и кредит;