Investments, 10th Edition
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The integrated solutions for Bodie, Kane, and Marcus' Investments set the standard for graduate/MBA investments textbooks. The unifying theme is that security markets are nearly efficient, meaning that most securities are priced appropriately given their risk and return attributes. The content places greater emphasis on asset allocation and offers a much broader and deeper treatment of futures, options, and other derivative security markets than most investment texts.
APPLIED PORTFOLIO MANAGEMENT 823 17 24 Macroeconomic and Industry Analysis 553 Portfolio Performance Evaluation 18 25 Equity Valuation Models 586 International Diversification 19 631 Hedge Funds 902 27 Part VI The Theory of Active Portfolio Management OPTIONS, FUTURES, AND OTHER DERIVATIVES 671 Options Markets: Introduction 924 28 Investment Policy and the Framework of the CFA Institute 950 REFERENCES TO CFA PROBLEMS 989 20 671 GLOSSARY 21 NAME INDEX 715 22 Futures Markets
of risk also benefits the firms that need to raise capital to finance their investments. When investors are able to select security types with the risk–return characteristics that best suit their preferences, each security can be sold for the best possible price. This facilitates the process of building the economy’s stock of real assets. Separation of Ownership and Management Many businesses are owned and managed by the same individual. This simple organization is well suited to small
asset value. September 28, 2007. Interestingly, while many closed-end funds sell at a discount from net asset value, the prices of these funds when originally issued are often above NAV. This is a further puzzle, as it is hard to explain why investors would purchase these newly issued funds at a premium to NAV when the shares tend to fall to a discount shortly after issue. In contrast to closed-end funds, the price of open-end funds cannot fall below NAV, because these funds stand ready to redeem
summarize, the evidence that performance is consistent from one period to the next is suggestive, but it is inconclusive. Other studies suggest that bad performance is more likely to persist than good performance. This makes some sense: It is easy to identify fund characteristics that will predictably lead to consistently poor investment performance, notably high expense ratios, and high turnover ratios with associated trading costs. It is far harder to identify the secrets of successful stock
tends to invest in large firms, with an emphasis on growth over value stocks. The table on the left in the figure labeled “Performance” reports on the fund’s quarterly returns over the last few years and then over longer periods up to 15 years. Comparisons of returns to relevant indexes, in this case, the S&P 500 and the Russell 1000 indexes, are provided to serve as benchmarks in evaluating the performance of the fund. The values under bod8237x_ch04_088-112.indd 105 4/19/08 8:45:37 AM