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Index
The Frank J. Fabozzi Series Title Page Copyright Page About the Editors Contributing Authors Foreword PART One - Instruments, Asset Allocation, Portfolio Selection, and Asset Pricing
CHAPTER 1 - Overview of Investment Management
SETTING INVESTMENT OBJECTIVES ESTABLISHING AN INVESTMENT POLICY SELECTING A PORTFOLIO STRATEGY CONSTRUCTING THE PORTFOLIO MEASURING AND EVALUATING PERFORMANCE KEY POINTS
CHAPTER 2 - Asset Classes, Alternative Investments, Investment Companies, and ...
ASSET CLASSES OVERVIEW OF ALTERNATIVE ASSET PRODUCTS INVESTMENT COMPANIES EXCHANGE-TRADED FUNDS MUTUAL FUNDS VS. ETFs: RELATIVE ADVANTAGES KEY POINTS QUESTIONS
CHAPTER 3 - Portfolio Selection
SOME BASIC CONCEPTS MEASURING A PORTFOLIO’S EXPECTED RETURN MEASURING PORTFOLIO RISK PORTFOLIO DIVERSIFICATION CHOOSING A PORTFOLIO OF RISKY ASSETS ISSUES IN PORTFOLIO SELECTION KEY POINTS QUESTIONS
CHAPTER 4 - Capital Asset Pricing Models
SHARPE-LINTNER CAPM ROY CAPM CONFUSIONS REGARDING THE CAPM TWO MEANINGS OF MARKET EFFICIENCY CAPM INVESTORS DO NOT GET PAID FOR BEARING RISK THE “TWO BETA” TRAP KEY POINTS QUESTIONS
CHAPTER 5 - Factor Models
ARBITRAGE PRICING THEORY TYPES OF FACTOR MODELS FACTOR MODEL ESTIMATION KEY POINTS APPENDIX: PRINCIPAL COMPONENT ANALYSIS IN FINANCE QUESTIONS
CHAPTER 6 - Modeling Asset Price Dynamics
FINANCIAL TIME SERIES BINOMIAL TREES ARITHMETIC RANDOM WALKS GEOMETRIC RANDOM WALKS MEAN REVERSION ADVANCED RANDOM WALK MODELS STOCHASTIC PROCESSES KEY POINTS QUESTIONS
CHAPTER 7 - Asset Allocation and Portfolio Construction
ASSET ALLOCATION AND PORTFOLIO CONSTRUCTION DECISIONS IN THE OPTIMAL DESIGN OF ... ASSET ALLOCATION AND PORTFOLIO CONSTRUCTION DECISIONS IN THE OPTIMAL DESIGN OF ... DYNAMIC ALLOCATION DECISIONS TO THE PERFORMANCE-SEEKING AND LIABILITY-HEDGING PORTFOLIOS KEY POINTS APPENDIX QUESTIONS
PART Two - Equity Analysis and Portfolio Management
CHAPTER 8 - Fundamentals of Common Stock
EARNINGS DIVIDENDS THE U.S. EQUITY MARKETS TRADING MECHANICS TRADING COSTS STOCK MARKET INDICATORS KEY POINTS QUESTIONS
CHAPTER 9 - Common Stock Portfolio Management Strategies
INTEGRATING THE EQUITY PORTFOLIO MANAGEMENT PROCESS CAPITAL MARKET PRICE EFFICIENCY TRACKING ERROR AND RELATED MEASURES ACTIVE VS. PASSIVE PORTFOLIO MANAGEMENT EQUITY STYLE MANAGEMENT PASSIVE STRATEGIES ACTIVE INVESTING PERFORMANCE EVALUATION KEY POINTS QUESTIONS
CHAPTER 10 - Approaches to Common Stock Valuation
DISCOUNTED CASH FLOW MODELS RELATIVE VALUATION METHODS KEY POINTS QUESTIONS
CHAPTER 11 - Quantitative Equity Portfolio Management
TRADITIONAL AND QUANTITATIVE APPROACHES TO EQUITY PORTFOLIO MANAGEMENT FORECASTING STOCK RETURNS, RISKS, AND TRANSACTION COSTS CONSTRUCTING PORTFOLIOS TRADING EVALUATING RESULTS AND UPDATING THE PROCESS KEY POINTS QUESTIONS
CHAPTER 12 - Long-Short Equity Portfolios
CONSTRUCTING A MARKET-NEUTRAL PORTFOLIO THE IMPORTANCE OF INTEGRATED OPTIMIZATION ADDING BACK A MARKET RETURN SOME CONCERNS ADDRESSED EVALUATING LONG-SHORT KEY POINTS QUESTIONS
CHAPTER 13 - Multifactor Equity Risk Models
MODEL DESCRIPTION AND ESTIMATION RISK DECOMPOSITION APPLICATIONS IN PORTFOLIO CONSTRUCTION AND RISK CONTROL KEY POINTS QUESTIONS
CHAPTER 14 - Fundamentals of Equity Derivatives
THE ROLE OF DERIVATIVES LISTED EQUITY OPTIONS FUTURES CONTRACTS PRICING STOCK INDEX FUTURES OTC EQUITY DERIVATIVES STRUCTURED PRODUCTS KEY POINTS QUESTIONS
CHAPTER 15 - Using Equity Derivatives in Portfolio Management
EQUITY INVESTMENT MANAGEMENT PORTFOLIO APPLICATIONS OF LISTED OPTIONS PORTFOLIO APPLICATIONS OF STOCK INDEX FUTURES APPLICATIONS OF OTC EQUITY DERIVATIVES RISK AND EXPECTED RETURN OF OPTION STRATEGIES KEY POINTS QUESTIONS
PART Three - Bond Analysis and Portfolio Management
CHAPTER 16 - Bonds, Asset-Backed Securities, and Mortgage-Backed Securities
GENERAL FEATURES OF BONDS U.S. TREASURY SECURITIES FEDERAL AGENCY SECURITIES CORPORATE BONDS MUNICIPAL SECURITIES ASSET-BACKED SECURITIES RESIDENTIAL MORTGAGE-BACKED SECURITIES COMMERCIAL MORTGAGE-BACKED SECURITIES KEY POINTS QUESTIONS
CHAPTER 17 - Basic Valuation, Yield Measures, and Interest Rate Risk Measures
BASIC VALUATION OF OPTION-FREE BONDS CONVENTIONAL YIELD MEASURES TOTAL RETURN MEASURING INTEREST RATE RISK KEY POINTS QUESTIONS
CHAPTER 18 - Spot Rates, Forward Rates, Yield Spreads, and Valuation
ARBITRAGE-FREE BOND VALUATION YIELD SPREAD MEASURES FORWARD RATES OVERVIEW OF THE VALUATION OF BONDS WITH EMBEDDED OPTIONS LATTICE MODEL VALUATION OF MBS AND ABS KEY POINTS QUESTIONS
CHAPTER 19 - Bond Portfolio Strategies for Outperforming a Benchmark
SELECTING THE BENCHMARK INDEX CREATING A CUSTOM INDEX BEATING THE BENCHMARK INDEX KEY POINTS QUESTIONS
CHAPTER 20 - The Art of Fixed Income Portfolio Investing
THE GLOBAL FIXED INCOME PORTFOLIO MANAGER THE GLOBAL CHALLENGE PORTFOLIO PARAMETERS REGULATORY CHANGES, DEMOGRAPHIC TRENDS, AND INSTITUTIONAL BIAS INFORMATION IN THE MARKETS DURATION AND YIELD CURVE VOLATILITY INTERNATIONAL CORPORATE BONDS INTERNATIONAL INVESTING AND POLITICAL EXTERNALITIES FOREIGN INVESTMENT SELECTION CURRENCY SELECTION KEY POINTS QUESTIONS
CHAPTER 21 - Multifactor Fixed Income Risk Models and Their Applications
APPROACHES USED TO ANALYZE RISK APPLICATIONS OF RISK MODELING KEY POINTS QUESTIONS
CHAPTER 22 - Interest Rate Derivatives and Risk Control
INTEREST RATE FUTURES AND FORWARD CONTRACTS INTEREST RATE SWAPS INTEREST RATE OPTIONS INTEREST RATE AGREEMENTS (CAPS AND FLOORS) KEY POINTS QUESTIONS
CHAPTER 23 - Credit Default Swaps and the Indexes
WHAT ARE CREDIT DEFAULT SWAPS? CREDIT DEFAULT SWAPS INDEXES KEY POINTS QUESTIONS
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