Wentworth
Institute of Technology
The conceptual foundations of investing : a short book of need-to-know essentials /
"This book explains the conceptual foundations of investing to improve investor performance. There are a host of investment mistakes that can be avoided by such an understanding. One example involves the trade-off between risk and return. The trade-off seems to imply that if you bear more risk...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Electronic eBook |
| Language: | English |
| Published: |
Hoboken, NJ :
John Wiley & Sons, Inc.,
[2018]
|
| Subjects: | |
| Online Access: |
Full text (Wentworth users only) |
Table of Contents:
- Cover; Title Page; Copyright; Contents; Preface; 1 Returns; Stocks, Bonds, and Bills; Return Mathematics; Volatility; Average Returns; Using Returns to Test Investment Theories; Returns and Stock Market History; Conceptual Foundation 1; 2 The Economic Structure of Investment Markets; The Arithmetic of Financial Markets; The Efficient Market Hypothesis; Informational Versus Fundamental Market Efficiency; The Efficient Market Hypothesis and Sharpe's Arithmetic; Who Are Your Counterparties?; Enough of the Theory, What About Results?; Conceptual Foundation 2; 3 Bonds and Inflation
- Treasury Bills and Treasury BondsTreasury Bills; Treasury Notes and Bonds; Interest Rates and Inflation; Bond Yields and Bond Returns; Treasury Inflation Protected Securities (TIPS); Corporate Bonds and Credit Risk; Promised Yields Versus Expected Yields; The Role of Diversification in Bond Investing; Superior Returns from Low-Grade Bond Investing; Conceptual Foundation 3; 4 Risk and Return; Risk Aversion and Risk Premiums; The Equity Market Risk Premium; Applying the CAPM; Applying the CAPM to Securities Other than Stocks; Discount Rates for Equity Cash Flows; Liquidity and Expected Returns
- Conceptual Foundation 45 Fundamental Analysis and Valuation; Bubbles; Fundamental Valuation; Free or "Dividendable" Cash Flow; The Constant Growth Model; A More Realistic Model; Warren Buffett's "Secret" to Investing; A Detailed Example: Tesla; Short Selling; Call Options; How the Market Sets Stock Prices; Fundamental Investing and Diversification; Finding Mispriced Stocks; What to Do if Mispricing Gets "Worse"; How Do You Tell if the Market Is "Expensive?"; The Social Benefits of Fundamental Investment Analysis; Conceptual Foundation 5; 6 Transaction Costs, Fees, and Taxes; Transaction Costs
- Managed Investment Funds and FeesTaxes; Income Versus Capital Gains; Realized Versus Unrealized Gains and Losses; Conceptual Foundation 6; 7 Can History Be Trusted?; Data Mining; Non-Stationarity; Non-Stationarity and the Small Firm Effect; Model Specification; Interaction; Smart Beta and Factor Premiums; Assessing Investment Management Performance; Presidential Politics and the Stock Market; Conceptual Foundation 7; 8 Can Behavioral Anomalies Be Exploited?; A Taxonomy of Potential Investor Biases; Cognitive Errors; Conservatism Bias and Underreaction; Confirmation Bias
- Representativeness BiasHindsight Bias; Anchoring and Adjustment Bias; Framing Bias; Emotional Biases; Loss Aversion Bias; Overconfidence; Self-Control Bias; Status-Quo Bias; Endowment Bias; Behavioral Finance and Market Pricing; Individuals Versus Organizations; Does It Matter Why Securities Are Mispriced?; The Role of Behavioral Biases in an Efficient Market; Overtrading and Performance Chasing; Lack of Diversification; Excessive Market Timing; Failure to Properly Manage Taxes; Failure to Allocate Wealth Properly Over Time; Conceptual Foundation 8; 9 Alternative Investments; Liquidity