Modern Portfolio Theory and Investment Analysis

Thoroughly updated to reflect recent research and includes many additional examples. Rigorous, yet not overly complex, it makes extensive use of empirical examples and evidence to keep investment theory and analysis from becoming too abstract for students to grasp. The Fourth Edition includes thorough, up-to-date coverage of multi-index models and international diversification as well as new material on portfolio management that examines not only the different types of investment strategies used, but the underlying philosophies behind those strategies. Instructor's Manual available.

Partial table of contents: PORTFOLIO ANALYSIS. The Characteristics of the Opportunity Set Under Risk. Techniques for Calculating the Efficient Frontier. The Correlation Structure of Security Returns: Multi-Index Models and Grouping Technique. Utility Analysis. International Diversification. MODELS OF EQUILIBRIUM IN THE CAPITAL MARKETS. The Standard Capital Asset Pricing Model. Empirical Tests of Equilibrium Models. SECURITY ANALYSIS AND PORTFOLIO THEORY. Efficient Markets. Earnings Estimation. The Management of Bond Portfolios. The Valuation and Uses of Financial Futures. EVALUATING THE INVESTMENT PROCESS. Evaluation of Portfolio Performance. Portfolio Management Revisited. Index.