Portfolio Construction, Management, & Protection

by Strong, Robert A.

• ISBN13: 9780324071832
• ISBN10: 0324071833
• Format: Hardcover
• Copyright: 2002-07-17
• Publisher: South-Western College Pub

Summary

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.

Table of Contents

PART ONE Background, Basic Principles, and Investment Policy	1	(124)
The Process of Portfolio Management	2	(12)
The Two Key Concepts in Finance	14	(21)
A Review of Statistical Principles Useful in Finance	35	(22)
Setting Portfolio Objectives	57	(28)
Appendix Mutual Fund Evaluation Term Project	78	(7)
Investment Policy	85	(40)
Appendix Sample Statements of Investment Policy	111	(14)
PART TWO Portfolio Construction	125	(254)
The Mathematics of Diversification	126	(15)
Why Diversification Is a Good Idea	141	(49)
Appendix Stochastic Dominance	178	(12)
International Investment and Diversification	190	(42)
The Capital Markets and Market Efficiency	232	(25)
Picking the Equity Players	257	(30)
Appendix The Special Case of Preferred Stock	283	(4)
Security Screening	287	(24)
Bond Prices and the Importance of Duration	311	(28)
Bond Selection	339	(18)
The Role of Real Assets	357	(22)
PART THREE Portfolio Management	379	(136)
Revision of the Equity Portfolio	380	(22)
Revision of the Fixed-Income Portfolio	402	(20)
Principles of Options and Option Pricing	422	(23)
Option Overwriting	445	(25)
Performance Evaluation	470	(25)
Fiduciary Duties and Responsibilities	495	(20)
PART FOUR Portfolio Protection and Emerging Topics	515	(110)
Principles of the Futures Market	516	(23)
Benching the Equity Players	539	(19)
Removing Interest Rate Risk	558	(21)
Integrating Derivative Assets and Portfolio Management	579	(20)
Contemporary Issues in Portfolio Management	599	(26)
Glossary	625	(18)
Index	643