The market leading Essentials of Investments, 6e by Bodie, Kane and Marcus is an undergraduate textbook on investment analysis, presenting the practical applications of investment theory to convey insights of practical value. The authors have eliminated unnecessary mathematical detail and concentrate on the intuition and insights that will be useful to practitioners throughout their careers as new ideas and challenges emerge from the financial marketplace.
Chapter 2 – Discounted cash flow applications. This chapter calculate and interpret the net present value (NPV) and the internal rate of return (IRR) of an investment, contrast the NPV rule to the IRR rule, calculate the money-weighted and time-weighted rates of return of a portfolio,...
Chapter 10 - Time-series analysis. This chapter introduces time series as a concept, and the basic autoregressive process makes it easy to see where the correlation of the error terms can be a problem; discuss the factors affecting the choice between a linear trend and a log-linear trend model for a time series incorporating a trend;....
Chapter 11 – Portfolio concepts. This chapter define mean–variance analysis and list its assumptions; explain the concept of an efficient portfolio; define the minimum-variance frontier, the global minimum-variance portfolio, and the efficient frontier;...
This chapter cover the basics of the investing process. We begin by describing how you go about buying and selling securities such as stocks and bonds. Then we outline some important consideration and constraints to kêp in mind as you get more involved in the investing process
Motivation for Developing the Course
Research by the members of the project consortium Employers’ Confederation
of Latvia and Bulgarian Chamber of Commerce and Industry indicated the need for
further education courses.
Innovative Content of the Course
The course is developed to include the following innovative content:
• Key concepts of investment analysis and portfolio management which are
explained from an applied perspective emphasizing the individual
investors‘decision making issues...
Motivation for Developing the Course Research by the members of the project consortium Employers’ Confederation of Latvia and Bulgarian Chamber of Commerce and Industry indicated the need for further education courses. Innovative Content of the Course The course is developed to include the following innovative content: • Key concepts of investment analysis and portfolio management which are explained from an applied perspective emphasizing the individual investors‘decision making issues
The World Bank Institute was established by the World Bank in 1955 to train officials con-cerned with development planning, policymaking, investment analysis, and project imple-mentation in member developing countries. At present the substance of WBI’s work empha-sizes macroeconomic and sectoral policy analysis.
Private investors may need to isolate their cash flows to debt , usually only a single mortgage, from the cash flows to equity, usually their savings. Private investors may need this information to record any shortfall between rent received and loan interest, for personal income tax measurement.
Chapter 7 - Basics of portfolio planning and construction. This chapter is organized as follows: Section 2 discusses the investment policy statement, a written document that captures the client’s investment objectives and the constraints. Section 3 discusses the portfolio construction process, including the first step of specifying a strategic asset allocation for the client. Section 4 concludes and summarizes the reading.
Chapter 1 – The time value of money. This chapter explain an interest rate as the sum of a real risk-free rate and premiums that compensate investors for distinct types of risk, distinguish between the stated annual interest rate and the effective annual rate, calculate the future value (FV) or present value (PV) of a single sum of money,...
Upon completion of this chapter you should understand: Applying return on investment analysis to decision problems, management goals, efficiency and productivity; time value of money and the application application of single‐payment interest calculations to single-and multiple-payment problems; time value of money or cash flow diagrams; application of compound, effective, nominal and continuous interest calculations; inflation and the time value of money.
Chapter 3 - Market efficiency. The topics discussed in this chapter are: Definition of efficient markets; different forms of market efficiency; evidence regarding market efficiency; implications for fundamental analysis, technical analysis, and portfolio management; market pricing anomalies; behavioral finance.
Chapter 4 - Portfolio management: An overview. This chapter provides an explanation of why a portfolio approach is important to all types of investors in achieving their financial goals. A comparison is made of the financial needs of different types of individual and institutional investors. An outline is provided for the steps in the portfolio management process. The chapter concludes with a discussion of the types of investment management products that are available to investors and how they apply to the portfolio approach.
Chapter 9 - Introduction to industry and company analysis. The topics discussed in this chapter are: Uses of industry analysis; industry classification systems; establishing a peer group; strategic analysis: Porter’s five forces; industry and product life cycles; demographic, governmental, social, and technological influences; company analysis; cost and differentiation strategies; spreadsheet modeling.
Chapter 10 - Equity valuation: Concepts and basic tools. This lecture introduces equity valuation models used to estimate the intrinsic value (synonym: fundamental value) of a security; intrinsic value is based on an analysis of investment fundamentals and characteristics.
Technical analysis has been used by traders and analysts for centuries, but it has only recently achieved broad acceptance among regulators and the academic community. This chapter gives a brief overview of the field, compares technical analysis with other schools of analysis, and describes some of the main tools in technical analysis.
Chapter 3 – Statistical concepts and market returns. This chapter include objectives: Differentiate between a population and a sample, explain the concepts of a parameter and a sample statistic; explain the differences among the types of measurement scales; define, calculate, and interpret a holding period return (total return);....