Table of contents Part I: Introduction
Overview: A Broad Map of the Territory
Investment Alternatives: Choices Galore
Securities Market: The Battlefield
Part II: Basic Concepts and Methods
Risk and Return: Two Sides of the Investment Coin
The Time Value of Money: The Magic of Compounding
Financial Statement Analysis: The Information Maze
Part III: Modern Portfolio Theory
Portfolio Theory: The Benefits of Diversification
Capital Asset Pricing Model and Arbitrage Pricing Theory: The Risk Reward Relationship
Efficient Market Hypothesis: The Collective Wisdom
Behavioural Finance: The Irrational Influences
Part IV: Fixed Income Securities
Bond Prices and Yields: Figuring out the Assured Returns
Bond Portfolio Management: The Passive and Active Stances
Part V: Equity Shares
Equity Valuation: How to Find Your Bearings
Macroeconomic and Industry Analysis: Understanding the Broad Picture
Company Analysis: Establishing the Value Benchmark
Technical Analysis: The Visual Clue
Part VI: Derivatives
Options: The Upside without the Downside
Futures: Where the Hedgers and Speculators Meet
Part VII: Other Investment Options
Mutual Funds: Indirect Investing
Investment in Real Assets: The Tangible Thing
Part VIII: Portfolio Management
Portfolio Management Framework: The Grand Design
Guidelines for Investment Decisions: What It All Comes To
Strategies of the Great Masters: The Timeless Wisdom
International Investing: The Global Search
Appendix A: Tables
Appendix B: Regression Analysis
Appendix C: Tax Aspects of Investments
New Features
This book seeks to capture the essence of modern developments in investments and provides a guided tour of the intricate and complex world of investments.
Written by a highly acknowledged author and expert, this book:
Describes the characteristics of various investment alternatives available to investors
Discusses how the securities market functions
Explains the techniques used by professionals for analyzing and valuing investment alternatives
Discusses the implications of modern research in the field of investments
Explains how financial derivatives like futures and options are valued
Presents a framework for portfolio management
Provides insights into the strategies followed by the investment wizards of the world
Sensitises the reader to the pitfalls in the investment game
Offers a set of guidelines for investors with varying inclinations
What's New in the Third Edition
Two new chapters titled 'Investment in Real assets' (Chapter 20) and 'International Investing' (Chapter 24) have been added.
14 new sections have been included: 'Buying on Margin and Short Sale,' 'Generally Accepted Accounting Principles,' 'Multifactor Models,' 'Stock Market as a Complex Adaptive System,' 'Free Cash Flow Model,' 'Sum of the Parts Method,' 'Strategy Analysis,' 'Accounting Analysis,' 'Excellent Versus Unexcellent Companies,' 'Commodity Futures in India,' 'Tax Aspects of Mutual Fund Investment,' 'Benjamin Graham: The Quantitative Navigator,' 'Philip Fisher: The Investigative Growth Stock Investor,' and "India's Money Monarchs.'
A number of boxes capturing valuable insights and important practices have been added.
Investment Analysis and Portfolio Management is meant for:
Investment practitioners like equity researchers, portfolio managers, and investment counsellors
Lay investors interested in managing their investments in a rational and systematic manner
MBA students taking a course on Investments (popularly called ?Security Analysis and Portfolio Management?).
To enhance the utility of the book, spreadsheet templates for students, additional problems and solutions manual and powerpoint presentation for students and instructors are available at http://highered.mcgraw-hill.com/sites/0070249075