In this book, the author draws from finance, psychology, economics, and other disciplines in business and the social sciences, recognising that personal finance and investments are subjects of study in their own right rather than merely branches of another discipline.
Considerable attention is given to topics which are either ignored or given very little attention in other texts. These include:
the psychology of investment decision-making
stock market bubbles and crashes
property investment
the use of derivatives in investment management
regulation of investments business.
More traditional subject areas are also thoroughly covered, including:
investment analysis
portfolio management
capital market theory
market efficiency
international investing
bond markets
institutional investments
option pricing
macroeconomics
the interpretation of company accounts.
Packed with over one hundred exercises, examples and exhibits and a helpful glossary of key terms, this book helps readers grasp the relevant principles of money management. It avoids non-essential mathematics and provides a novel new approach to the study of personal finance and investments.
This book will be essential for students and researchers engaged with personal finance, investments, behavioural finance, financial derivatives and financial economics.
This book also comes with a supporting website that includes two updated chapters, a new article featuring a behavioural model of the dot com, further exercises, a full glossary and a regularly updated blog from the author.
CONTENTS
Preface
Chapter 1 - Introduction
Chapter 2 - The Psychology of Personal Investment Decisions, Basics of Money, Bond and Property Markets
Chapter 3 - Interest Rates and Money Market Investments
Chapter 4 - Investing in Bonds
Chapter 5 - Property Investment and Mortgages, Basics of Stock Markets
Chapter 6 - Stock Exchanges
Chapter 7 - Stock Indices
Chapter 8 - The Rationale and Conduct of Regulation, Institutional Investments
Chapter 9 - Mutual Funds (Unit Trusts, OEICs, Investment Trusts)
Chapter 10 - Life Assurance and Assurance-Related Investments
Chapter 11 - Pensions
Chapter 12 - The Importance and Significance of Institutional Investors, Capital Market Theory
Chapter 13 - Portfolio Diversification
Chapter 14 - Capital Market Theory: The Capital Asset Pricing Model
Chapter 15 - Capital Market Theory: Alternatives and Criticisms, Portfolio Management
Chapter 16 - Styles of Portfolio Construction
Chapter 17 - Evaluating the Performance of Fund Managers, Investment Analysis
Chapter 18 - The Economic Environment
Chapter 19 - Dividend Discount Models
Chapter 20 - Company Accounts and Economic Value Added
Chapter 21 - Ratio Analysis
Chapter 22 - Technical Analysis, Market Efficiency
Chapter 23 - Market Efficiency: Concepts and Weak Form Evidence
Chapter 24 - Noise Trading and Behavioural Finance
Chapter 25 - Market Anomalies
Chapter 26 - Further Evidence on Market Efficiency
Chapter 27 - Stock Market Bubbles and Crashes, Stock Index Futures
Chapter 28 - Stock Index Futures
Chapter 29 - Stock Index Futures Prices
Chapter 30 - Hedging with Stock Index Futures, Stock Options
Chapter 31 - Stock Options
Chapter 32 - Speculation with Stock Options
Chapter 33 - Hedging with Options
Chapter 34 - Structured Products
Chapter 35 - Warrants, Convertibles, and Split-Caps
Chapter 36 - Option Pricing and the Black-Scholes Model
Chapter 37 - Variations on the Basic Black-Scholes Option Pricing Model
Chapter 38 - The Binomial Option Pricing Model, International Investing: Using Currency Derivatives
Chapter 39 - Currency Forwards, Futures, Swaps and Options, Bond and Interest Rate Analysis
Chapter 40 - Bond Prices and Redemption Yields
Chapter 41 - Duration and Risk
Chapter 42 - Bond Price Convexity
Chapter 43 - Bond Futures
Chapter 44 -Yield Curves and Interest Rate Futures
Chapter 45 - Interest Rate Swaps
