Contents:
Part 1 Background, Basic Principles, and Investment Policy 1;
1 The Process of Portfolio Management 2;
2 The Two Key Concepts in Finance 14;
3 A Review of Statistical Principles Useful in Finance 35;
4 Setting Portfolio Objectives 57;
Appendix Mutual Fund Evaluation Term Project 78;
5 Investment Policy 85;
Appendix Sample Statements of Investment Policy 111;
Part 2 Portfolio Construction 125;
6 The Mathematics of Diversification 126;
7 Why Diversification Is a Good Idea 141;
Appendix Stochastic Dominance 178;
8 International Investment and Diversification 190;
9 The Capital Markets and Market Efficiency 232;
10 Picking the Equity Players 257;
Appendix The Special Case of Preferred Stock 283;
11 Security Screening 287;
12 Bond Prices and the Importance of Duration 311;
13 Bond Selection 339;
14 The Role of Real Assets 357;
Part 3 Portfolio Management 379;
15 Revision of the Equity Portfolio 380;
16 Revision of the Fixed-Income Portfolio 402;
17 Principles of Options and Option Pricing 422;
18 Option Overwriting 445;
19 Performance Evaluation 470;
20 Fiduciary Duties and Responsibilities 495;
Part 4 Portfolio Protection and Emerging Topics 515;
21 Principles of the Futures Market 516;
22 Benching the Equity Players 539;
23 Removing Interest Rate Risk 558;
24 Integrating Derivative Assets and Portfolio Management 579;
25 Contemporary Issues in Portfolio Management 599.