The purpose of this book is to provide a concise overview of the quantitative tools and models that have been most widely used in investment management.
A primary objective of the book is to help the capital market professional who does not necessarily aspire to be a technical specialist gain a working understanding of the new technology of finance.
The book's thirteen chapters are divided in two parts. Part I is devoted to the analysis and valuation of individual securities, while Part II considers portfolios of securities.
An essential element of the book is the numerical problems and spreadsheet exercises at the end of each chapter, reflecting a belief that the material is best learned if students work with it and try to apply the basic principles in a variety of contexts.
(NOTE: Each chapter concludes with a Summary, Suggestions for Further Reading, Problems and Questions, and Appendices.) I. ANALYSIS OF INDIVIDUAL SECURITIES.
1. Fixed Income Security Prices and Yields.
2. Option-Free Bonds: Measuring and Managing Interest Rate Risk.
3. The Term Structure of Interest Rates.
4. Equities: The Discounted Cash Flow Approach.
5. Principles of Option Pricing.
6. Fixed Income Securities with Call and Prepayment Options.
7. Other Options Embedded in Bonds and Equity.
8. Forward and Futures Contracts. II. ANALYSIS OF PORTFOLIOS OF SECURITIES.
9. Investor Preferences and Attitudes Toward Risk.
10. Fundamentals of Portfolio Analysis: The Generic Portfolio Problems.
11. Capital Market Equilibrium and the Pricing of Securities.
12. Active Portfolio Strategies.
13. Performance Evaluation and the Organization of Portfolio Management.
Index.
