The Theory and Practice of Investment Management (Frank J. Fabozzi Series)

Expert advice that applies the theory and practice of investment management to today's financial environment The changing nature and rapid growth of the investment management industry, along with new theoretical developments in the field of finance, have led to a need for higher quality investment management practices and better qualified professionals. The Theory and Practice of Investment Management recognizes these needs and addresses them with sharp, innovative insights from some of the most respected experts in the field of investment management. The Theory and Practice of Investment Management discusses and describes the full scope of investment products and strategies available in today's market. Led by financial experts Frank Fabozzi and Harry Markowitz, the contributors to this book are active, successful practitioners with hands-on expertise. By combining real-world financial knowledge with investment management theory, this book provides a complete analysis of all pertinent investment products-including hedge funds and private equity-and explores a wide range of investment strategies. Tying together theoretical advances in investment management with actual applications, this book gives readers an opportunity to use proven investment management techniques to protect and grow a portfolio under many different circumstances. The Theory and Practice of investment management......Page 3 contents......Page 7 ABOUT THE EDITORS......Page 11 CONTRIBUTING AUTHORS......Page 13 FOREWORD......Page 15 SECTION ONE Foundations of Investment Management......Page 21 CHAPTER 1 Investment Management......Page 23 CHAPTER 2 Portfolio Selection......Page 35 CHAPTER 3 Applying Mean-Variance Analysis......Page 63 CHAPTER 4 Asset Pricing Models......Page 85 CHAPTER 5 Calculating Investment Returns......Page 111 SECTION TWO Investing in Common Stock......Page 139 CHAPTER 6 Common Stock Markets, Trading Arrangements, and Trading Costs......Page 141 CHAPTER 7 Tracking Error and Common Stock Portfolio Management......Page 183 CHAPTER 8 Common Stock Portfolio Management Strategies......Page 201 CHAPTER 9 Traditional Fundamental Analysis I: Sources of Information......Page 229 CHAPTER 10 Traditional Fundamental Analysis II: Financial Ratio Analysis......Page 247 CHAPTER 11 Traditional Fundamental Analysis III: Earnings Analysis, Cash Analysis, Dividends, and Dividend Discount Models......Page 295 CHAPTER 12 Security Analysis Using Value-Based Metrics......Page 337 CHAPTER 13 Multi-Factor Equity Risk Models......Page 363 CHAPTER 14 Equity Derivatives I: Features and Valuation......Page 393 CHAPTER 15 Equity Derivatives II: Portfolio Management Applications......Page 429 SECTION THREE Investing in Fixed-Income Securities......Page 457 CHAPTER 16 Fixed-Income Securities......Page 459 CHAPTER 17 Real Estate-Backed Securities......Page 485 CHAPTER 18 General Principles of Bond Valuation......Page 521 CHAPTER 19 Yield Measures and Forward Rates......Page 545 CHAPTER 20 Valuation of Bonds with Embedded Options......Page 569 CHAPTER 21 Measuring Interest Rate Risk......Page 603 CHAPTER 22 Fixed-Income Portfolio Strategies......Page 635 CHAPTER 23 Bond Portfolio Analysis Relative to a Benchmark......Page 673 CHAPTER 24 Multi-Factor Fixed-Income Risk Models and Their Applications......Page 685 CHAPTER 25 Fixed-Income Derivatives and Risk Control......Page 717 SECTION FOUR Investment Companies and Exchange-Traded Funds......Page 745 CHAPTER 26 Investment Companies......Page 747 CHAPTER 27 Exchange-Traded Funds......Page 767 SECTION FIVE Investing in Real Estate and Alternative Investments......Page 781 CHAPTER 28 Real Estate Investment......Page 783 CHAPTER 29 Hedge Funds......Page 805 CHAPTER 30 Private Equity......Page 835 SECTION SIX Asset Allocation......Page 859 CHAPTER 31 Active Asset Allocation......Page 861 INDEX......Page 879 In today's financial environment, investment management requires an understanding of a multitude of different issues, from how investment objectives are determined to the best way to construct a portfolio given an investment strategy. The Theory and Practice of Investment Management recognizes these needs and addresses them with sharp, innovative insights fromsome of the most respected experts in the field of investment management. Led by financial experts Frank Fabozzi and Harry Markowitz, the contributors to this book-successful practitioners with hands-on expertise-combine real-world financial knowledge with investment management theory to provide the practical guidance you need to succeed within the investment management arena. Comprising six distinct sections ... I: Foundations of Investment Management II: Investing in Common Stock III: Investing in Fixed-Income Securities IV: Investment Companies and Exchange-Traded Funds V: Investing in Real Estate and Alternative Investments VI: Asset Allocation ... this comprehensive investment management resource offers valuable insights and analysis of all pertinent investment products while exploring a wide range of investment strategies. The Theory and Practice of Investment Management is theultimate guide to understanding the various aspects of investment management and investment vehicles, and is essential reading for practitionersand students alike. Take this opportunity to use proven investment management techniques to protect and grow any portfolio "An updated guide to the theory and practice of investment management Many books focus on the theory of investment management and leave the details of the implementation of the theory up to you. This book illustrates how theory is applied in practice while stressing the importance of the portfolio construction process. The Second Edition of The Theory and Practice of Investment Management is the ultimate guide to understanding the various aspects of investment management and investment vehicles. Tying together theoretical advances in investment management with actual practical applications, this book gives you a unique opportunity to use proven investment management techniques to protect and grow a portfolio under many different circumstances. Contains new material on the latest tools and strategies for both equity and fixed income portfolio management Includes key take-aways as well as study questions at the conclusion of each chapter A timely updated guide to an important topic in today's investment world This comprehensive investment management resource combines real-world financial knowledge with investment management theory to provide you with the practical guidance needed to succeed within the investment management arena."--Provided by publisher. In today's financial environment, investment management requires an understanding of a multitude of different issues, from how investment objectives are determined to the best way to construct a portfolio given an investment strategy. The Theory and Practice of Investment Management recognizes these needs and addresses them with sharp, innovative insights from some of the most respected experts in the field of investment management.Led by financial experts Frank Fabozzi and Harry Markowitz, the contributors to this book -- successful practitioners with hands-on expertise -- combine real-world financial knowledge with investment management theory to provide the practical guidance you need to succeed within the investment management arena.The Theory and Practice of Investment Management is the ultimate guide to understanding the various aspects of investment management and investment vehicles, and is essential reading for practitioners and students alike. Take this opportunity to use proven investment management techniques to protect and grow any portfolio. Frank J. Fabozzi, Harry M. Markowitz, Editors. Includes Indes.