book

Equity Markets and Portfolio Analysis

Name: Equity Markets and Portfolio Analysis
Author: R. Stafford Johnson
ISBN: 9781118202685

by R. Stafford Johnson

June 2014

Beginner

720 pages

22h 12m

English

Bloomberg Press

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Preface
Content
Acknowledgments
CHAPTER 1 Overview of the Financial System
Real and Financial Assets Types of Equity Claims Types of Debt Claims Financial Markets Types of Financial Markets Regulations Efficient Financial Markets Characteristics of Assets Conclusion Web Site InformationNotesSelected References
CHAPTER 2 Overview and Guide to the Bloomberg System
Introduction Bloomberg System—Bloomberg Keyboard Accessing Some of the Information Discussed in Chapter 1 Indexes Functionality Economic, Industry, Law, and Municipal Information Screens Monitor and Portal Screens Portfolios and Baskets Screening and Search Functions The Bloomberg Excel Add-In: Importing Bloomberg into Excel Launchpad Other Bloomberg Functions ConclusionBloomberg Exercises
CHAPTER 3 Stock and Bond Valuation and Return
Introduction Rate of Return Future and Present Values Bond Valuation The Yield to Maturity and Other Rates of Return Measures for Bonds Total Return Spot Rates and Equilibrium Prices Geometric Mean Stock Valuation and Return Fundamental Stock Valuation Two-Stage and Three-Stage Growth Models The Bloomberg Three-Stage Growth Model—DDM Valuation of Preferred Stock Conclusion Web Site InformationNotes
Selected References
Bloomberg Exercises
CHAPTER 4 Equity Securities, Markets, and Trading
Introduction Types of Equity Securities How Stocks and other Securities are Traded—Primary Market The Markets for Existing Securities Convergences of Organized Exchanges, the OTC Market, and the Electronic Communications Networks Trading Securities in the Market Types of Transactions Types of Orders Cost of Trading Conclusion Web Site InformationNotesSelected ReferencesBloomberg Exercises
CHAPTER 5 Investment Funds, Intermediate Securities, and Global Equity Markets
Introduction Investment Funds Exchange-Traded Funds Other Investment-Type Funds and Securities Insurance Companies, Pension Funds, and Investment Banks Financial Service Industry, the 2008 Financial Crisis, and Regulations Global Equity Markets and Exchanges Conclusion Web Site InformationNotesSelected ReferencesBloomberg Exercises
CHAPTER 6 Expected Rate of Return and Risk—Stock
Introduction Risk-Free Security, Nominal Rates, and Real Rates Stock Risk: Firm, Industry, and Market Risk Statistical Measurements of Expected Return and Risk Parameter Estimates: Historical Averages Parameter Estimates: Regression Relationship between Return and Risk Conclusion Web Site InformationNotesSelected ReferencesBloomberg Exercises
CHAPTER 7 Portfolio Evaluation
Introduction Portfolio Return and Risk Portfolio Risk and Size Relation Return and Risk of a Portfolio of Risky Stocks and a Risk-Free Security Portfolio Performance Evaluation Using Bloomberg Conclusion Web Site InformationSelected ReferencesBloomberg Exercises

CHAPTER 8 Portfolio Selection— Markowitz Model
Introduction Two-Security Portfolio Return-Risk Relation Markowitz Portfolio Selection Efficiency Frontier Single-Index Model Elton, Gruber, and Padberg Multi-Index Models ConclusionNotesSelected ReferencesBloomberg Exercises
CHAPTER 9 The Capital Asset Pricing Model
Introduction Overview Derivation of the CAPM Empirical Tests of the CAPM Application of CAPM: Wells Fargo Stock Selection Approach ConclusionNotesSelected ReferencesBloomberg Exercises
CHAPTER 10 The Arbitrage Pricing Theory
Introduction Derivation of the Model Empirical Tests of the APT Application of APT: Factor Models ConclusionNotesSelected ReferencesBloomberg Exercises
CHAPTER 11 The Financial Anatomy of a Company—Fundamental Analysis
Introduction Stock Value Equity Valuation of a Firm Capital Structure Corporate Investments Mergers and Acquisitions ConclusionNotes
Selected References
Bloomberg Exercises
CHAPTER 12 Applied Fundamental Analysis
Introduction Valuation Using the Multiplier Approach Valuation Using the Discounted-Cash Flow Model and Bloomberg's DDM Model Growth Duration Model Economic Value Added Relative Analysis Qualitative Analysis When to Sell Conclusion Web Site InformationSelected ReferencesBloomberg Exercises
CHAPTER 13 Market and Industrial Analysis: Top-Down Approach
Introduction Macroeconomic Environment Business Fluctuations: Overshooting, Corrections, and Financial Crisis Economic Indicators Industry Analysis Aggregate Stock Market Analysis and Valuation Industry Analysis and Valuation Top-Down Portfolio Management Conclusion Web Site InformationNotesSelected ReferencesBloomberg Exercises
CHAPTER 14 Technical Analysis
Introduction Price Trends Price Trends Combined with Volume and Moving Averages Market and Stock Metrics Technical Analysis of Other Markets and Portfolios Behavioral Finance ConclusionWeb Site InformationNotesSelected ReferencesBloomberg Exercises
CHAPTER 15 Efficient Markets
Introduction Efficient Market Theory Studies of the Weak-Form Hypothesis Studies of the Semi-Strong-Form Hypothesis Studies of the Strong-Form Hypothesis Conclusions on the Strong-Form Efficient Markets Portfolios Revisited: Equity Style Portfolios ConclusionNotesSelected ReferencesBloomberg Exercises
CHAPTER 16 Options Markets
Introduction: Short History of the Derivative Market Option Strategies Fundamental Option Strategies Other Option Strategies Option Price Relations Option Exchanges Stock Index Options Black-Scholes Option Pricing Model Conclusion Web Site InformationNotesSelected ReferencesBloomberg Exercises
CHAPTER 17 Futures Markets
Introduction The Nature of Futures Trading and the Role of the Clearinghouse The Market and Characteristics of Futures Contracts Equity Index Futures Pricing Futures and Forward Contracts: Carrying-Cost Model Options on Futures Contracts Conclusion Web Site InformationNotesSelected ReferencesBloomberg Exercises
Index
End User License Agreement

Content preview from Equity Markets and Portfolio Analysis

CHAPTER 15 Efficient Markets

Introduction

One of the most influential theories to emerge out of the finance literature over the last 50 years is the efficient market hypothesis (EMH). Introduced by Burton Malkiel in the 1960s, the EMH precipitated a considerable amount of controversy between proponents of the EMH (primarily academicians) and practitioners who employed fundamental and technical analysis. EMH proponents argued that if the market consisted of a sufficient number of fundamentalists, then their actions would force the market price of a security to its equilibrium value. For example, if a security was underpriced, the fundamentalists would try to buy the security, pushing its market price toward its equilibrium value. In contrast, ...

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Equity Markets and Portfolio Analysis

by R. Stafford Johnson

CHAPTER 15 Efficient Markets

Introduction

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