This applications-oriented text transitions from theory to practice in a clear, straightforward manner. An ideal text for schools that do not have a "pure" portfolio course, it accomplishes the objectives of both a traditional investments course and a portfolio theory course. The book balances coverage of both the small and large investor, and offers unique coverage of topics not found in other texts, such as fiduciary duty and investment policy. Numerous references and questions from the CFA exam are also included.



Book Info

Applications-oriented text transitions from theory to practice in a clear, straightforward manner. An ideal text for schools that do not have a 'pure' portfolio course, it accomplishes the objectives of both a traditional investments course and a portfolio theory course. Infotrac college edition.



Table of Contents :

Part One. Background, basic principles, and investment policy

1. The process of portfolio management

2. The two key concepts in finance

3. A review of statistical principles useful in finance

4. Setting portfolio objectives

Appendix. Mutual fund evaluation term project

5. Investment policy

Appendix. Sample statements of investment policy

Part Two. Portfolio construction

6. The mathematics of diversification

7. Why diversification is a good idea

Appendix. SStohastic dominance

8. International investment and diversification

9. The capital markets and market efficiency

10. Picking the equity players

Appendix. The special case of preferred stock

11. Security screening

12. Bond prices and the importance of duration

13. Bond selection

14. The role of real assets

Part Three. Portfolio Management

15. revision of the equity portfolio

16. Revision of the fixed-income portfolio

17. Principles of options and option pricing

18. Option overwriting

19. Performance evaluation

20. Fiduciary duties and responsibilities

Part Four. Portfolio protection and emerging topics

21. Principles of the futures market

22. Benching the equity players

23. Removing interest rate risk

24. Integrating derivative assets and portfolio management

25. Contemporary issues in portfolio management

Glossary

Index



About the Author

Bob Strong is University Foundation Professor of Investment Education and Professor of Finance at the University of Maine.

His Bachelor of Science degree in engineering is from the United States Military Academy at West Point, his Master of Science degree in business administration from Boston University, and his Ph.D. in finance from Penn State University. He has also been a visiting professor of finance at Maine Maritime Academy and at Harvard University where he was Deputy Director of the Summer Economics Program from 1997 - 1999. He is a Chartered Financial Analyst.

Dr. Strong's CONSULTING focuses on risk management and asset valuation. Among the organizations for which he has consulted are Eastern Maine Healthcare, Bangor Hydro Electric Company, Maine Public Service Company, Energy Atlantic, the Maine State Police, the Maine Forest Service, Irving Oil, James Sewall Company, and Texas Instruments. He has been a conference speaker for the Chicago Board Options Exchange, the Chicago Board of Trade, and the American Stock Exchange.

His current RESEARCH interests center on investor asset allocation. He has published in journals ranging from the Journal of Finance and the Journal of Portfolio Management to the trade journals Pensions and Investments and Futures. His fourth book Derivatives: An Introduction was published in 2002.