Foundations of Investments: An Introduction

Name: Foundations of Investments: An Introduction
Price: 4990 ISK
Availability: InStock
Author: Troy Adair
ISBN: 9798214057040

Höfundur: Troy Adair (Útgáfa: 2)

Kaup valmöguleikar

Teach students the theory and skills to implement investment tasks with Adair/Nofsinger's "Foundations of Investments: An Introduction. " From theory to practice to implementation, examples present a theory, then illustrate and solve investment processes using spreadsheets. Understand math and visualize portfolio construction with theory, and illustrate the implications of diversification in mutual funds and other portfolios through practice.

The authors demonstrate how to optimize return under the constraints of minimizing risk. Students implement functions for different returns, data handling, probability distributions and regression analysis and examine graphing tools to chart in technical analysis. This edition covers crypto investing, financial planning, behavioral aspects of investing and discusses environmental, social and governance investing.

Nánar um bókina

Útgefandi: Cengage Learning US

ISBN: 9798214057040

Print ISBN: 9798214056944

Format: ePub

Útgáfa: 2

Höfundar: Troy Adair

Tungumál: English

Útgefið: 2026-02-05

Prent takmörkun á líftíma: 100

Prent takmörkun: 2

Afritunar takmörkun: 2

Flokkar: Viðskiptafræði

Efnisflokkar: Viðskipti og hagfræði › Almennt Viðskipti og hagfræði › Fjármál

Kaflar

Cover Page
Title Page
Copyright Page
About the Authors
Preface
Acknowledgments
Part 1. The Investments Environment
Chapter 1. Introduction to Investments
1-1. The Study of Investments
1-2. Real vs. Financial Assets
1-3. Cash Flows and the Sources of Uncertainty
1-4. Valuation
1-5. Efficient and Competitive Markets
1-6. Diversification and Portfolio Construction
1-7. The Financial Crises of 2008 and 2020 and Associated Recoveries
1-8. AI, High Tech, and the Magnificent 7
1-9. Investment Careers
Conclusion
Key Terms
Questions
Case Study
Chapter 2. Types and Attributes of Financial Instruments
2-1. Securities vs. Financial Instruments
2-1a. Primary Market Transactions
2-1b. Corporate Risk, Return, and Control Ramifications of Primary Market Transactions
2-1c. Secondary Market Transactions
2-2. Equity Securities
2-2a. Allocation of Control to Shareholders
2-2b. Allocation of Return to Shareholders
2-2c. Allocation of Risk to Shareholders
2-3. Fixed-Income Securities
2-3a. Fixed-Income Issuers and Their Attributes
2-3b. Interest and Maturity
2-3c. The Indenture
2-3d. The Role of the Trustee
2-3e. Forms of Debt
2-3f. Allocation of Control to Bondholders
2-3g. Allocation of Return to Bondholders
2-3h. Allocation of Risk to Bondholders
2-4. Money Market Instruments
2-4a. Treasury Bills
2-4b. Repurchase Agreements
2-4c. Certificates of Deposit
2-4d. Commercial Paper
2-4e. Banker’s Acceptances
2-4f. Tax Anticipation Notes
2-4g. Yields on Money Market Instruments
2-5. Financial Derivative Instruments
2-5a. Futures Contracts
2-5b. Options
2-6. Foreign Exchange Instruments
2-7. Cryptoassets
Conclusion
Key Terms
Questions
Case Study
Chapter 3. Securities Markets and Transactions
3-1. Major Securities Exchanges
3-1a. New York Stock Exchange
3-1b. Nasdaq
3-1c. Over-the-Counter Markets
3-1d. Internationalization of Markets
3-1e. Electronic Communications Networks (ECNs)
3-2. Indices to Measure the Markets
3-2a. Stock Index Design
3-2b. Major Stock Indexes
3-2c. Indexes by Market Capitalization
3-2d. Value and Growth Indexes
3-2e. Indexes by Sector and Industry
3-2f. Global Stock Market Indexes
3-2g. The Volatility Index (VIX)
3-3. Buying and Selling Securities
3-3a. Brokerage Firms
3-3b. Types of Orders
3-3c. Cash and Margin Accounts
3-3d. The Short Sale
3-4. Regulation
3-4a. Federal Securities Laws
Conclusion
Chapter Equations
Excel Function
Key Terms
Questions
Problems
Case Study
Chapter 4. Mutual Funds and Other Investment Companies
4-1. Mutual Funds
4-1a. Mutual Fund Costs
4-1b. Mutual Fund Portfolios
4-1c. Popular Specialized Mutual Funds
4-1d. Mutual Fund Returns
4-1e. Tax Efficiency
4-2. Exchange-Traded Funds (ETFs)
4-2a. ETF Pricing and Performance
4-2b. Investment Objectives of ETFs
4-2c. Leveraged and Short ETFs
4-3. Closed-End Investment Companies
4-3a. Discounts and Premiums
4-3b. Unit Trusts
4-4. Hedge Funds
4-5. Real Estate Investment Trusts (REITs)
4-5a. Real Estate Stocks and Mutual Funds
Conclusion
Chapter Equations
Excel Functions
Key Terms
Questions
Problems
Case Study
Part 2. Portfolio Theory
Chapter 5. Measuring Return and Risk
5-1. Measuring Return
5-1a. The Components of Return
5-1b. Realized vs. Expected vs. Required Returns
5-1c. HPR Using Adjusted Closing Prices
5-1d. Standardizing HPR
5-1e. Arithmetic vs. Geometric Averages
5-1f. Arithmetic Average as a Special Case of Probabilistic Expected Return
5-1g. The Relationship Between Geometric Average Return, Effective Rates, and Nominal Rates
5-2. Measuring Risk
5-2a. The Law of Large Numbers (LLN) and the Benefit of Recency
5-2b. The Distribution of Monthly Returns
5-2c. Calculating Standard Deviation of Returns
5-3. Return vs. Risk: The Historical Record
5-3a. Is Risk “Priced” into Returns?
5-3b. The Effect of Sampling on Compensation for Risk
5-3c. Our Inability to Perfectly See Investors’ Expectations
5-3d. Should All Uncertainty Be Priced?
5-3e. Is There Only One “Price” for Risk?
Conclusion
Chapter Equations
Excel Functions
Key Terms
Questions
Problems
Case Study
Chapter 6. Portfolios and Diversification
6-1. Risky Assets and Return Comovement
6-1a. Two Risky Assets
6-1b. Asset Classes
6-2. Portfolio Theory
6-2a. Portfolio Risk and Return
6-2b. Portfolio Creation
6-2c. Modern Portfolio Theory
6-2d. Portfolios with International Diversification
6-3. Utility and Optimal Portfolio Choice
6-3a. Utility Theory
6-3b. Optimal Portfolios
Conclusion
Chapter Equations
Excel Functions
Key Terms
Questions
Problems
Case Study
Chapter 7. Risk-Free and Risky Asset Allocation and the CAPM
7-1. Capital Market Line
7-1a. Capital Allocation Line
7-1b. The Capital Market Line
7-2. Capital Asset Pricing Model in Theory
7-2a. Pricing Individual Securities
7-2b. Security Market Line
7-2c. CAPM Basic Assumptions
7-3. Capital Asset Pricing Model in Practice
7-3a. Finding Beta
7-3b. Estimating Beta
7-3c. Model Specification Problems
7-3d. Portfolio Betas
Conclusion
Chapter Equations
Excel Functions
Key Terms
Questions
Problems
Case Study
Chapter 8. Asset Pricing Models and Efficient Markets
8-1. Arbitrage Pricing Theory
8-1a. Arbitrage Pricing
8-1b. APT Modeling
8-2. Multifactor Models
8-2a. 3-Factor Model
8-2b. 4-Factor Model
8-2c. 5-Factor Model and More
8-3. Efficient Markets
8-3a. Competitive Markets
8-3b. The Efficient Market Hypothesis
Conclusion
Chapter Equations
Excel Functions
Key Terms
Questions
Problems
Case Study
Chapter 9. Portfolio Performance Analytics
9-1. Risk-Adjusted Returns
9-1a. Category Comparisons
9-1b. Jensen’s Alpha
9-1c. Treynor Index
9-1d. Sharpe Ratio
9-2. Performance Attribution
9-3. Market Timing
9-4. Active Management
Conclusion
Chapter Equations
Excel Functions
Key Terms
Questions
Problems
Case Study
Part 3. Investing in Stock
Chapter 10. The Macroeconomic Environment for Investment Decisions
10-1. The Economic Environment
10-2. Measures of Economic Activity
10-2a. Measures of Consumer Confidence
10-3. The Consumer Price Index
10-4. The Fed
10-4a. Determination of Interest Rates
10-4b. The Impact of the Federal Reserve on Interest Rates
10-4c. Fed Watching
10-4d. The Money Supply
10-5. Fiscal Policy
10-6. The 2008–2011, 2020–2021, and 2022–2025 Economic Environments
10-6a. 2008–2011
10-6b. 2020–2021
Conclusion
Chapter Equations
Excel Functions
Key Terms
Questions
Problems
Case Study
Chapter 11. Valuing Common Stock
11-1. Corporate Form of Business
11-1a. Ownership
11-1b. Cash Dividends
11-1c. Stock Dividends
11-1d. Stock Splits
11-1e. Stock Repurchases and Liquidations
11-2. Analysis of Financial Statements
11-2a. Liquidity Ratios
11-2b. Activity Ratios
11-2c. Profitability Ratios
11-2d. Leverage Ratios
11-2e. Coverage Ratios
11-2f. Analysis of Cash Flow
11-3. Stock Valuation
11-3a. Investor Expected Return
11-3b. Stock Valuation: The Present Value of Dividends
11-4. Price Multiple Analysis
11-4a. Price Multiples
11-5. Growth and Value Investing
Conclusion
Chapter Equations
Excel Functions
Key Terms
Questions
Problems
Case Study
Chapter 12. Valuing Preferred Stock
12-1. Valuing Vanilla Preferred Shares
12-2. Valuing Finite-Lived Preferred Shares
12-3. Valuing Convertible Preferred Shares
12-4. Valuing Floating Preferred Shares
12-5. Valuing Noncumulative Preferred Shares
12-6. Valuing Participating Preferred Shares
12-7. Valuing More Exotic Preferred Shares
12-8. After-Tax Returns to Preferred Shareholders
Conclusion
Chapter Equations
Excel Functions
Key Terms
Questions
Problems
Case Study
Part 4. Special Topics
Chapter 13. Technical Analysis
13-1. The Technical Analysis Approach
13-1a. Supply and Demand
13-1b. A Visual Approach
13-1c. Theory and Practice
13-2. Charting
13-2a. Dow Theory
13-2b. Demand Support and Supply Resistance
13-2c. Types of Charts
13-2d. Price Patterns
13-3. Volume
13-4. Technical Indicators
13-4a. Market Breadth
13-4b. Market Imbalance
13-4c. Buy–Sell Indicators
13-4d. Sentiment Surveys
13-4e. Momentum
13-5. Is Technical Analysis Useful?
Conclusion
Chapter Equations
Excel Functions
Key Terms
Questions
Problems
Case Study
Chapter 14. Investing in Cryptocurrency
14-1. A (Brief) History of Fiat Currency
14-2. Implications of Fiat Currency
14-3. The Birth of Cryptocurrency
14-4. Investing vs Mining/Staking
14-5. What’s in Your Wallet? Authenticating Cyptocurrency transactions
14-6. Investing in Cryptocurrencies Directly: Cryptocurrency Exchanges
14-7. Investing in Cryptocurrencies Indirectly: ETFs, Options, and Futures Contracts
14-7a. Cryptocurrency ETFs
14-7b. Cryptocurrency Options
14-7c. Cryptocurrency Futures Contracts
Conclusion
Key Terms
Questions
Problems
Case Study
Part 5. Investing in Debt
Chapter 15. Valuing Corporate Bonds
15-1. General Features of Bonds
15-1a. Interest and Maturity
15-1b. The Indenture
15-1c. The Role of the Trustee
15-1d. Forms of Debt
15-2. Risk
15-3. The Mechanics of Purchasing Bonds
15-4. Variety of Corporate Bonds
15-4a. Mortgage Bonds
15-4b. Equipment Trust Certificates
15-4c. Other Asset-Backed Securities and Securitization
15-4d. Debentures
15-4e. Income Bonds
15-4f. Convertible Bonds
15-4g. Variable Interest Rate Bonds
15-4h. Zero Coupon Bonds
15-4i. Eurobonds
15-4j. Libor
15-5. High-Yield Securities
15-5a. Split Coupon Bonds
15-5b. Reset Securities and Increasing Rate Bonds
15-5c. Extendible Securities
15-5d. Spreads and Returns
15-6. Accrued Interest, Zero Coupon Bonds, Original-Issue Discount Bonds, and Income Taxation
15-7. Retiring Debt
15-7a. Serial Bonds
15-7b. Sinking Funds
15-7c. Repurchasing Debt
15-7d. Call Feature
15-7e. Escrowed to Maturity
15-8. Obtaining Information on Bonds
15-9. Bond Pricing
15-9a. Perpetual Securities
15-9b. Bonds with Maturity Dates
15-9c. Semiannual Compounding
15-10. Fluctuations in Bond Prices
15-10a. Bond Valuation Applications to Nontraditional Bonds
15-11. Bond Yields
15-11a. The Current Yield
15-11b. The Yield to Maturity
15-11c. A Comparison of the Current Yield and the Yield to Maturity
15-11d. The Yield to Call
15-12. Risk and Fluctuations in Yield
15-12a. Changes in Risk
15-12b. Duration
15-12c. Duration and Portfolio Immunization
15-12d. Modified Duration
15-12e. Bond Price Convexity
15-13. Management of Bond Portfolios
15-13a. Management of Interest Rate Risk
15-13b. Matching Strategies
15-13c. Interest Rate Swaps
Conclusion
Chapter Equations
Excel Functions
Key Terms
Questions
Problems
Case Study
Chapter 16. Valuing Government Securities
16-1. The Variety of Federal Government Debt
16-1a. Interest and Maturity
16-1b. Nonmarketable Federal Government Debt
16-1c. Treasury Bills
16-1d. Treasury Notes and Bonds
16-1e. The Variability of Federal Government Bond Returns
16-2. STRIPS
16-2a. Zero-Coupon Treasury Securities
16-3. Inflation-Indexed Treasury Securities
16-4. Federal Agencies’ Debt
16-4a. Ginnie Mae Securities
16-4b. Collateralized Mortgage Obligations (CMOs)
16-4c. Tranches Based on Risk
16-5. State and Local Government Debt
16-5a. The Tax Exemption
16-5b. Yields on Municipal Bonds
16-5c. Types of Tax-Exempt Securities
16-5d. Tax-Exempt Securities and Risk
16-5e. Authority Bonds
16-6. Foreign Government Debt Securities
16-7. Government Securities and Investment Companies
16-7a. Specialized Government Investment Companies
Conclusion
Chapter Equations
Excel Functions
Key Terms
Questions
Problems
Case Study
Part 6. Investing in Derivative Securities
Chapter 17. An Introduction to Futures Contracts and Options
17-1. Call Options
17-1a. Interest and Maturity
17-2. Leverage
17-2a. The Time Premium Paid for a Call
17-2b. Purchasing Calls
17-2c. Writing Calls
17-3. Puts
17-3a. Buying Puts
17-3b. Writing Puts
17-3c. Puts Compared with Short Sales
17-3d. Protective Puts
17-3e. The Put–Call Ratio
17-4. Leaps
17-5. Price Performance of Puts and Calls
17-6. The Chicago Board Options Exchange
17-7. Stock Index Options
17-8. Currency and Interest Rate Options
17-9. Warrants
17-10. Futures and Forward Contracts
17-10a. Investing in Commodity Futures
17-10b. Futures Markets
17-10c. Commodity Positions
17-10d. The Units of Commodity Contracts
17-10e. Reporting of Futures Trading
17-10f. The Regulation of Commodity Markets
17-10g. Forward Contracts
17-11. Leverage of Futures and Forward Contracts
17-12. Hedging with Futures and Forward Contracts
17-13. The Selection of Commodity Futures Contracts
17-13a. Managed Futures and ETFs
17-14. The Pricing of Futures
17-15. Financial Futures and Currency Futures
17-15a. Stock Market Futures
17-15b. Programmed Trading and Index Arbitrage
17-16. Futures for Debt Instruments
17-17. Currency Futures
17-17a. Currency Futures and Risk Reduction Through Hedging with Currency Futures
17-18. Swaps
17-18a. Currency and Interest Rate Swaps
17-18b. Equity Swaps
17-18c. Credit Default Swaps
Conclusion
Chapter Equations
Key Terms
Questions
Problems
Case Study
Chapter 18. Derivative Valuation and Strategies
18-1. Black–Scholes Option Valuation
18-1a. Alternative Option Pricing Models
18-2. Expensing Employee Stock Options and Option Valuation
18-3. Put–Call Parity
18-4. The Hedge Ratio
18-4a. Delta and Other Greeks
18-5. Additional Option Strategies
18-5a. The Covered Put
18-5b. The Protective Call
18-5c. The Straddle
18-5d. The Bull Spread
18-5e. The Bear Spread
18-5f. Collars
Conclusion
Chapter Equations
Excel Functions
Key Terms
Questions
Problems
Case Study
Chapter 19. Financial Planning
19-1. The CFP Certification Process
19-2. The Financial Planning Process
19-3. Sample Hypothetical Clients
19-4. Risk Management and Insurance Planning
19-5. Investment Planning
19-6. Tax Planning
19-7. Retirement Planning
19-8. Estate Planning
Conclusion
Key Terms
Questions
Problems
Case Study
Chapter 20. Purposeful Investing
20-1. History of Sustainable Investing
20-1a. Socially Responsible Investing
20-1b. Corporate Social Responsibility
20-1c. Environment, Social, and Governance Investing
20-2. ESG Ratings and Screens
20-2a. ESG Analytics
20-2b. Negative and Positive Investment Social Screens
20-3. Sustainable Indexes, ETFs, and Mutual Funds
20-3a. Sustainable Indexes
20-3b. Sustainable ETFs and Mutual Funds
Conclusion
Key Terms
Questions
Case Study
Chapter 21. Behavioral Aspects of Investing
21-1. Development of Behavioral Finance
21-2. Prospect Theory and Mental Accounting
21-3. Heuristics and Cognitive Biases
21-3a. Heuristics
21-3b. Cognitive Biases
21-4. Emotions and Sentiment
21-5. Choice Architecture
Defined Contribution Plan Nudges
21-6. Cognition
21-6a. Fluid Intelligence
21-6b. Cognitive Reflection
21-6c. Theory of Mind
21-6d. Cognitive Aging
Conclusion
Key Terms
Questions
Case Study