The Financial Times Guide to Understanding Finance, 2nd Edition

Table of contents

1. cover
2. Title
3. Contents
4. Publisher’s acknowledgments
5. Preface to the second edition
6. Preface to the first edition
7. part 1 Risk and return
   1. 1 Returns I: Basic concepts
   2. 2 Returns II: Mean returns
   3. 3 Risk I: Total risk
   4. 4 Risk and return I: Portfolios
   5. 5 Risk II: Diversification
   6. 6 Risk III: Systematic risk
   7. 7 Risk and return II: CAPM and the cost of capital
   8. 8 Risk and return III: The three-factor model
   9. 9 Risk IV: Downside risk
   10. 10 Risk and return IV: Risk-adjusted returns
   11. 11 Risk and return V: Portfolio optimization
   12. 12 Risk and return VI: The long term
8. part 2 Valuation
   1. 13 Stocks I: The dividend discount model
   2. 14 Stocks II: The WACC model
   3. 15 Stocks III: Other DCF models
   4. 16 Stocks IV: Reverse valuation
   5. 17 Stocks V: Relative valuation
   6. 18 Bonds I: Prices and yields
   7. 19 Bonds II: Default risk and market risk
   8. 20 Bonds III: Duration and convexity
9. part 3 Other important topics
   1. 21 NPV and IRR
   2. 22 Real options
   3. 23 Corporate value creation
   4. 24 Options
   5. 25 Futures and forwards
   6. 26 Currencies
10. part 4 Statistical background
    1. 27 Stats I: Summary statistics
    2. 28 Stats II: Normality
    3. 29 Stats III: Non-normality
    4. 30 Stats IV: Regression analysis
11. Index
12. Imprint