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The Handbook of Financial Instruments
book

The Handbook of Financial Instruments

by Frank J. Fabozzi
August 2002
Beginner
847 pages
26h 4m
English
Wiley
Content preview from The Handbook of Financial Instruments

Preface

One of the most important investment decisions that an investor encounters is the allocation of funds among the wide range of financial instruments. That decision requires an understanding of the investment characteristics of all asset classes. The objective of The Handbook of Financial Instruments is to explain financial instruments and their characteristics.

In Chapter 1, financial assets and financial markets are defined. Also explained in the chapter are the general characteristics of common stock and fixed-income securities, the properties of financial markets, the general principles of valuation, the principles of leverage, mechanisms for borrowing funds in the market using securities as collateral, and the role of derivative products.

Chapter 2 provides the fundamentals of investing. This is done in terms of the phases of the investment management process. The topics included in the chapter are traditional and alternative asset classes, how asset classes are determined, various types of risk, active versus passive portfolio management, and active versus indexed portfolio construction.

Chapter 3 explains the proper methodology for computing investment returns. Complications associated with calculating investment returns include selection of the appropriate inputs in the calculation, treatment of client contributions and withdrawals from an investment account, the timing of contributions and withdrawals, the difference between return earned by the investment manager ...

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Publisher Resources

ISBN: 9780471220923