Investments
PART I Introduction
1 The Investment Environment
2 Financial Markets, Asset Classes, and Financial Instruments
3 How Securities Are Traded
4 Mutual Funds and Other Investment Companies
PART II Portfolio Theory and Practice
5 Risk, Return, and the Historical Record
6 Capital Allocation to Risky Assets
7 Efficient Diversification
8 Index Models
PART III Equilibrium in Capital Markets
9 The Capital Asset Pricing Model
10 Arbitrage Pricing Theory and Multifactor Models of Risk and Return
11 The Efficient Market Hypothesis
12 Behavioural Finance and Technical Analysis
13 Empirical Evidence on Security Returns
PART IV Fixed-Income Securities
14 Bond Prices and Yields
15 The Term Structure of Interest Rates
16 Managing Bond Portfolios
PART V Security Analysis
17 Macroeconomic and Industry Analysis
18 Equity Valuation Models
19 Financial Statement Analysis
PART VI Options, Futures, and Other Derivatives
20 Options Markets: Introduction
21 Option Valuation
22 Futures Markets
23 Futures, Swaps, and Risk Management
PART VII Applied Portfolio Management
24 Portfolio Performance Evaluation
25 International Diversification
26 Alternative Assets
27 The Theory of Active Portfolio Management
28 Investment Policy and the Framework of the CFA Institute
REFERENCES TO CFA PROBLEMS
GLOSSARY
INDEX
COMMONLY USED NOTATIONS
USEFUL FORMULAS
Recognized as the market leading text for investment courses, the Eleventh Canadian Edition of Investments;continues to present material in a framework that is organized by a central core of consistent fundamental principles. The authors have eliminated unnecessary mathematical detail and concentrate on the intuition and insights that will be useful to students and practitioners throughout their careers as new ideas and challenges emerge from the financial marketplace.
The Eleventh Canadian Edition addresses many of the changes in the investment environment, including the unprecedented events surrounding the global financial crisis and the COVID-19 pandemic.
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CURRENCY. Chapter 1 addresses recent controversies about stakeholder capitalism and ESG (environmental, social, and governance) investing. There is an expanded discussion of fintech, cryptocurrency, and other digital assets.
RELEVANCE. The Eleventh Canadian Edition addresses many of the changes in the investment environment, including the unprecedented events surrounding the global financial crisis, the COVID-19 pandemic, and the resurgence of inflation in world markets.
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COVERAGE. The Eleventh Canadian Edition introduces and discusses the new benchmark money market rate, the Canadian Overnight Repo Rate Average (CORRA), which has replaced CDOR. There is also discussion of the new benchmark rate in the U.S., SOFR, and the new UK benchmark rate SONIA. The authors incorporate discussion of current market conditions, including the effects of the resurgence in global inflation as a result of supply shocks that were exacerbated by the Russian invasion of Ukraine in February 2022
UPDATED AND IMPROVED CHAPTER 26 This chapter, originally titled Hedge Funds, now has a wider focus on alternative assets. In addition to covering hedge funds, it now includes substantial coverage of private equity, including angel investing, venture capital, and leveraged buyouts.
RELEVANCE. Many features of this text make it consistent with and relevant to the Chartered Financial Analysts (CFAs) curriculum including questions from past CFA exams and excerpts from the;Code of Ethics and Standards of Professional Conduct” of the CFA Institute.
PROBLEM MATERIAL. Rich end-of-chapter material including problem sets, CFA Exam prep questions, CFA problems and E-investment boxes provide more than enough opportunity for students to practice and apply the concepts learned in the chapter.
EXCEL APPLICATIONS. The authors continue with the systematic collection of Excel spreadsheets that give tools to explore concepts more deeply than was previously possible. These spreadsheets, available on Connect, provide a taste of the sophisticated analytic tools available to professional investors. Numerous Excel applications are included where appropriate. Excel Spreadsheet Applications with questions, Excel Exhibits along with Excel Problems are included.
CONCEPT CHECKS. Self-test questions and problems found in the body of the text enable the students to determine whether they;ve understood the preceding material. Detailed solutions are provided at the end of each chapter.
NUMBERED EXAMPLES. Numbered and titled examples are integrated throughout chapters. Using the worked-out solutions to these examples as models, students can learn how to solve specific problems step-by-step as well as gain insight into general principles by seeing how they are applied to answer concrete questions.
WORDS FROM THE STREET. Short feature articles from business periodicals are included in boxes throughout the text. The articles are chosen for real-world relevance and clarity of presentation.
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