Third Edition ZVI BODIE ALEX KANE ALAN J. MARCUS

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Third Edition ZVI BODIE ALEX KANE ALAN J. MARCUS"

Transcription

1 Third Edition ZVI BODIE Boston University ALEX KANE University of California, San Diego ALAN J. MARCUS Boston College IRWIN Chicago Bogota Boston Buenos Aires Caracas London Madrid Mexico City Sydney Toronto

2 Contents List of Boxes xxxi Part I Introduction Prologue The Main Themes of Investments 2 The Risk-Return Trade-Off 2 Active versus Passive Management 3 Equilibrium Pricing Relationships 4 The Use of Options and Futures Contracts in Implementing Investment Strategy 5 Text Organization 5 Other Features 5 The Investments Field and Career Opportunities 6 The Investment Environment 10 Real Assets versus Financial Assets 10 Clients of the Financial System 13 The Household Sector 13 The Business Sector 14 The Government Sector 15 The Environment Responds to Clientele Demands 17 Financial Intermediation 17 Investment Banking 19 Financial Innovation and Derivatives 19 Response to Taxation and Regulation 21 Markets and Market Structure 24 Ongoing Trends 25 Globalization 25 Securitization 26 Credit Enhancement 26 Financial Engineering 28 On the Relationship between Households and Businesses 30 Summary 34,

3 xviii Contents 2 Markets and Instruments 38 The Money Market 38 Treasury Bills 39 Certificates of Deposit 43 Commercial Paper 43 Bankers' Acceptances 43 Eurodollars 44 Repos and Reverses 44 Federal Funds 45 Brokers' Calls 45 The LIBOR Market 45 Yields on Money Market Instruments 45 The Fixed-Income Capital Market 46 Treasury' Notes and Bonds 46 Federal Agency Debt 48 Municipal Bonds 49 Corporate Bonds 52 Mortgages and Mortgage-Backed Securities 53 Equity Securities 56 Common Stock as Ownership Shares 56 Characteristics of Common Stock 57 Stock Market Listings 57 Preferred Stock 59 Stock and Bond Market Indexes 59 Stock Market Indexes 59 Dow Jones Averages 60 Standard & Poor's Indexes 62 Other Market Value Indexes 64 Foreign and International Stock Market Indexes 67 Bond Market Indicators 68 Derivative Markets 69 Options 70 Futures Contracts 71 Summary 73 3 How Securities Are Traded 78 How Firms Issue Securities 78 Investment Bankers and Underwriting 79 Shelf Registration 80 Underpricing 80 Where Securities Are Traded 81 The Secondary Markets 81 The Over-the-Counter Market 84

4 Contents xix The Third and Fourth Markets 85 The National Market System 86 Market Structure in Other Countries 86 Trading on Exchanges 87 The Participants 88 Types of Orders 88 Specialists and the Execution of Trades 88 Block Sales 91 The DOT System 92 Settlement 92 Trading on the OTC Market 92 Trading Costs 93 Buying on Margin 96 Short Sales 98 Regulation of Securities Markets 100 Government Regulation 100 Self-Regulation and Circuit Breakers 101 Insider Trading 102 Mutual Funds and Other Investment Companies 103 Mutual Funds 103 Management Companies and Mutual Fund Investment Policies 106 Costs of Trading Mutual Funds 109 Unit Investment Trusts 111 Commingled Funds 111 Real Estate Investment Trusts (REITs) 112 Summary Concepts and Issues 118 Determinants of the Level of Interest Rates 118 Real and Nominal Rates of Interest 119 The Equilibrium Real Rate of Interest 120 The Equilibrium Nominal Rate of Interest 121 Bills and Inflation, Taxes and the Real Rate of Interest 122 Risk and Risk Premiums 123 The Historical Record 125 Bills, Bonds, and Stocks, Real versus Nominal Risk 131 Risk in a Portfolio Context 132 The Law of One Price and Arbitrage 133 Summary 134 Appendix: Continuous Compounding 138

5 XX Contents Part II Portfolio Theory Risk and Risk Aversion 142 Risk and Risk Aversion 143 Risk with Simple Prospects 143 Risk, Speculation, and Gambling 144 Risk Aversion and Utility Values 145 Portfolio Risk 149 Asset Risk versus Portfolio Risk 149 A Review of Portfolio Mathematics 150 Summary 155 Appendix A: A Defense of Mean-Variance Analysis 158 Describing Probability Distributions 158 Normal and Lognormal Distributions 161 Appendix B: Risk Aversion and Expected Utility Capital Allocation between the Risky Asset and the Risk-Free Asset 170 Capital Allocation across Risky and Risk-Free Portfolios 171 The Risk-Free Asset 173 Portfolios of One Risky Asset and One Risk-Free Asset 175 Risk Tolerance and Asset Allocation 180 Passive Strategies: The Capital Market Line 183 Summary Optimal Risky Portfolios 192 Diversification and Portfolio Risk 193 Portfolios of Two Risky Assets 195 Asset Allocation with Stocks, Bonds, and Bills 203 The Optimal Risky Portfolios with Two Risky Assets and a Risk-Free Asset 204 The Markowitz Portfolio Selection Model 210 Security Selection 210 Capital Allocation and the Separation Property 215 Asset Allocation and Security Selection 216 Optimal Portfolios with Restrictions on the Risk-Free Asset 217 Summary 221 Appendix A: The Power of Diversification 226 Appendix B: The Insurance Principle: Risk-Sharing versus Risk-Pooling 228 Appendix C: The Fallacy of Time Diversification 231

6 Contents xxi Part III Equilibrium in Capital Markets The Capital Asset Pricing Model 236 The Capital Asset Pricing Model 236 Why Do All Investors Hold the Market Portfolio? 239 The Passive Strategy Is Efficient 240 The Risk Premium of the Market Portfolio 240 Expected Returns on Individual Securities 241 The Security Market Line 246 Extensions of the CAPM 248 The CAPM with Restricted Borrowing: The Zero-Beta Mode! 249 Lifetime Consumption: The CAPM with Dynamic Programming 252 The CAPM and Liquidity: A Theory of llliquidity Premiums 253 Summary Index Models 266 A Single-Index Security Market 266 Systematic Risk versus Firm-Specific Risk 266 Estimating the Index Model 270 The Index Mode! and Diversification 273 The CAPM and the Index Model 275 Actual Returns versus Expected Returns 275 The Index Model and Realized Returns 275 The Index Model and the Expected Return-Beta Relationship 276 The Industry Version of the Index Model 278 Predicting Betas 282 Summary Arbitrage Pricing Theory 289 Arbitrage: Profits and Opportunities 289 Well-Diversified Portfolios and the APT 292 Well-Diversified Portfolios 293 Betas and Expected Returns 295 The Security Market Line 297 Individual Assets and the APT 298 The APT and the CAPM 300 A Multifactor APT 301 \ Summary 303

7 xxii Contents 11 Empirical Evidence on Security Returns 310 The Index Model and the Single-Factor APT 311 The Expected Return-Beta Relationship ' 311 The Efficiency of the Market Index Roll's Critique 320 Multiple Factors in Security Returns 329 Identifying Factors from Security Returns 329 Tests of Multifactor Equilibrium Models with Prespecified Factor Portfolios 331 Time-Varying Volatility and the State of Tests of Capital Asset Prices 334 Summary Market Efficiency 338 Random Walks and the Efficient Market Hypothesis 339 Competition as the Source of Efficiency 340 Versions of the Efficient Market Hypothesis 341 Implications of the EMH for Investment Policy 342 Technical Analysis 342 Fundamental Analysis 347 Active versus Passive Portfolio Management 348 The Role of Portfolio Management in an Efficient Market 349 Book Values versus Market Values 351 Event Studies 351 Are Markets Efficient? 356 The Issues 356 Tests of Predictability in Stock Market Returns 357 Portfolio Strategies and Market Anomalies 361 Risk Premiums or Anomalies? 368 So, Are Markets Efficient? 377 Summary 377 Part iv Fixed-Income Securities Bond Prices and Yields 386 Bond Characteristics 387 Treasury Bonds and Notes 387 Corporate Bonds 389 Preferred Stock 392 Other Issuers 392 Default Risk 393 Junk Bonds 393 Determinants of Bond Safety 395 Bond Indentures 397 Bond Pricing 399 Review of the Present Value Relationship 399 Bond Pricing 400

8 Contents Bond Yields 403 Yield to Maturity 403 Yield to Call 404 Yield to Maturity and Default Risk 406 Realized Compound Yield versus Yield to Maturity 408 Yield to Maturity versus Holding Period Return 408 Bond Prices over Time 409 Zero-Coupon Bonds 411 After-Tax Returns 412 Summary The Term Structure of Interest Rates The Term Structure under Certainty 423 Bond Pricing 423 Holding-Period Returns 427 Forward Rates 428 Measuring the Term Structure 430 Interest Rate Uncertainty and Forward Rates 433 Theories of the Term Structure 435 The Expectations Hypothesis 435 Liquidity Preference 435 Market Segmentation and Preferred Habitat Theories 436 Interpreting the Term Structure 439 Summary Fixed-Income Portfolio Management Interest Rate Risk 450 Interest Rate Sensitivity 451 Duration 452 What Determines Duration? 455 Passive Bond Management 458 Bond-Index Funds 458 Immunization 461 Net Worth Immunization 461 Target Date Immunization 462 Cash Flow Matching and Dedication 468 Other Problems with Conventional Immunization 469 Active Bond Management 469 Sources of Potential Profit 469 Horizon Analysis 472 Contingent Immunization 474 An Example of a Fixed-Income Investment Strategy 475 Interest Rate Swaps All Financial Engineering and Interest-Rate Derivatives 480 Summary 482

9 xxiv Contents Part v Security Analysis Macroeconomic and Industry Analysis 492 The Global Economy 492 The Domestic Macroeconomy 495 Demand and Supply Shocks 497 Federal Government Policy 499 Fiscal Policy 499 Monetary Policy 499 Supply-Side Policies 501 Business Cycles 501 The Business Cycle 501 Economic Indicators 503 Industry Analysis 506 Defining an Industry 507 Sensitivity to the Business Cycle 508 Industry Life Cycles 510 Industry Structure and Performance 513 An Example 514 Summary Equity Valuation Models 521 Balance Sheet Valuation Methods 521 Intrinsic Value versus Market Price 523 Dividend Discount Models 524 The Constant Growth DDM 525 Convergence of Price to Intrinsic Value 528 Stock Prices and Investment Opportunities 529 Life Cycles and Multistage Growth Models 531 Price/Earnings Ratio 536 The Price/Earnings Ratio and Growth Opportunities 536 Pitfalls in P/E Analysis 538 Combining P/E Analysis and the DDM 541 Corporate Finance and the Free Cash Flow Approach 542 Inflation and Equity Valuation 543 Behavior of the Aggregate Stock Market 543 Explaining Past Behavior 548 Forecasting the Stock Market 550 Summary Financial Statement Analysis 560 The Major Financial Statements 560 The Income Statement 560 The Balance Sheet 562 The Statement of Cash Flows 562

10 Contents XXV Accounting versus Economic Earnings 565 Return on Equity 568 Past versus Future ROE 568 Financial Leverage and ROE 568 Ratio Analysis 570 Decomposition of ROE 570 Turnover and Other Asset Utilization Ratios 573 Liquidity and Coverage Ratios 575 Market Price Ratios 576 An Illustration of Financial Statement Analysis 578 Comparability Problems 580 Inventory Valuation 582 Depreciation 583 Inflation and Interest Expense 584 International Accounting Conventions 584 Inflation Accounting 585 Value Investing: The Graham Technique 586 Summary 588 Part vi Options, Futures, and Other Derivatives Options Markets: Introduction 600 The Option Contract 601 Options Trading 602 American and European Options 604 Adjustments in Option Contract Terms 605 The Option Clearing Corporation 605 Other Listed Options 606 Values of Options at Expiration 610 Call Options 610 Put Options 612 Option versus Stock Investments 615 Option Strategies 617 Protective Put 617 Covered Calls 620 Straddle 623 Spreads 623 Collars 625 The Put-Call Parity Relationship 627 Optionlike Securities 629 Callable Bonds 630 Convertible Securities 631 Warrants 633 Collateralized Loans 634 i Levered Equity and Risky Debt 635

11 xxvi Contents Financial Engineering 635 Exotic Options 640 Asian Options 640 Barrier Options 640 Lookback Options 640 Currency-Translated Options 641 Binary Options 641 Summary Option Valuation 648 Option Valuation: Introduction 648 Intrinsic and Time Values 648 Determinants of Option Values 650 Restrictions on Option Values 652 Restrictions on the Value of a Call Option 652 Early Exercise and Dividends 654 Early Exercise of American Puts 655 Binominal Option Pricing 656 Two-State Option Pricing 656 Generalizing the Two-State Approach 659 Black-Scholes Option Valuation 662 The Black-Scholes Formula 662 Dividends and Call Option Valuation 669 Put Option Valuation 670 Using the Black-Scholes Formula 670 Hedge Ratios and the Black-Scholes Formula 670 Portfolio Insurance 672 Empirical Evidence 678 Summary Futures Markets 685 The Futures Contract 685 The Basics of Futures Contracts 686 Existing Contracts 690 Mechanics of Trading in Futures Markets 691 The Clearinghouse and Open Interest 691 Marking to Market and the Margin Account 693 Cash versus Actual Delivery 695 Regulations 696 Taxation 697 Futures Markets Strategies 697 Hedging and Speculation 697 Basis Risk and Hedging 700 The Determination of Futures Prices 701 The Spot-Futures Parity Theorem 701

12 Contents xxvii Spreads 704 Forward versus Futures Pricing 705 Futures Prices versus Expected Spot Prices 706 Expectations Hypothesis 706 Normal Backwardation 707 Contango 708 Modern Portfolio Theory 708 Summary Futures and Swaps: A Closer Look 714 Stock Index Futures 714 The Contracts 714 Creating Synthetic Stock Positions: An Asset Allocation Tool 716 Empirical Evidence on Pricing of Stock Index Futures 718 Index Arbitrage and the Triple-Witching Hour 720 Foreign Exchange Futures 723 The Markets 723 Interest Rate Parity 726 Interest Rate Futures 729 Commodity Futures Pricing 731 Pricing with Storage Costs 731 Discounted Cash Flow Analysis for Commodity Futures 733 Swaps 736 Credit Risk in the Swap Market 740 Swap Variations 742 Summary 743 Part VII Active Portfolio Management The Theory of Active Portfolio Management 750 The Lure of Active Management 750 Objectives of Active Portfolios 752 Market Timing 756 Valuing Market Timing as an Option 758 The Value of Imperfect Forecasting 759 Security Selection: The Treynor-Black Model 760 Overview of the Treynor-Black Model 760 Portfolio Construction 761 Multifactor Models and Active Portfolio Management 767 Summary Portfolio Performance Evaluation 773 Measuring Investment Returns 774 Time-Weighted Returns versus Dollar^Weighted Returns 774 Arithmetic versus Geometric Averages 775

13 xxviii Contents The Conventional Theory of Performance Evaluation 778 Sharpe's Measure as the Criterion for Overall Portfolios Appropriate Performance Measures in Three Scenarios Relationships among the Various Performance Measures Actual Performance Measurement: An Example 786 Realized Returns versus Expected Returns 788 Performance Measurement with Changing Portfolio Composition 789 Market Timing 791 Performance Attribution Procedures 793 Asset Allocation Decisions 795 Sector and Security Selection Decisions 795 Summing Up Component Contributions 797 Evaluating Performance Evaluation 798 Summary Hedging 810 Hedging Techniques 811 General Principles 811 Hedging Systematic Risk 814 Hedging Interest Rate Risk 816 Hedging Bets on Mispriced Options 819 Effects of Hedging Demands on Capital Market Equilibrium 823 Summary International Diversification 831 International Investments 832 The World Market Portfolio 832 International Diversification 833 Techniques for Investing Internationally 837 Exchange Rate Risk 840 Passive and Active International Investing 845 Factor Models and International Investing 849 Equilibrium in International Capital Markets 851 Summary 852 Part VIII Players and Strategies Managing Client Portfolios 858 Making Investment Decisions 858 Objectives 859 Individual Investors 859 Personal Trusts 859 Mutual Funds 862

14 Contents xxix Pension Funds 862 Endowment Funds 862 Life Insurance Companies 863 Nonlife Insurance Companies 864 Banks 864 Constraints 864 Liquidity 864 Investment Horizon 865 Regulations '865 Tax Considerations 866 Unique Needs 866 Asset Allocation 866 Specifying Capital Market Expectations 867 Deriving the Efficient Portfolio Frontier 868 The Optimal Mix 870 Diversifying into Different Asset Classes 870 Hedging against Inflation 874 Taxes and Asset Allocation 878 Summary 879 Appendix: Why Stocks Are Not Less Risky in the Long Run Managing Retirement Assets and Pension Funds 893 The Life Cycle and the Risk-Return Trade-Off 893 Human Capital and Insurance 893 Investment in Residence 894 Saving for Retirement and the Assumption of Risk 894 Manage Your Own Portfolio or Rely on Others? 895 Tax Sheltering 897 The Tax-Deferral Option 897 Tax-Deferred Retirement Plans 898 Deferred Annuities 898 Variable and Universal Life Insurance 901 Growth versus Income 901 Pension Funds 902 Defined-Contribution Plans 902 Defined-Benefit Plans 903 Alternative Perspectives on Defined-Benefit Pension Obligations 904 Pension Investment Strategies 905 Summary Some Recent Developments in Investment Research 921 Stochastic Volatility and Asset Returns 921 The Empirical Content of Asset Pricing Models 926 Option Pricing 934 '

15 XXX Contents Appendix A Quantitative Review B Solutions to Concept Checks ai A2 A41 Glossary Gl Name Index II Subject Index 14

BODIE / KANE / MARCUS

BODIE / KANE / MARCUS 2008 AGI-Information Management Consultants May be used for personal purporses only or by libraries associated to dandelon.com network. I-. SIXTH EDITION BODIE / KANE / MARCUS _J M c G R A W - K I L L

More information

Investments ZVI BODIE ALEX KANE ALAN J. MARCUS. Hill Education. Boston University. University of California, San Diego. Boston College.

Investments ZVI BODIE ALEX KANE ALAN J. MARCUS. Hill Education. Boston University. University of California, San Diego. Boston College. Investments T E N T H G L O B A L E D I T I O N ZVI BODIE Boston University ALEX KANE University of California, San Diego ALAN J. MARCUS Boston College Mc Graw Hill Education Preface xvi PART I Introduction

More information

ANALYSIS AND MANAGEMENT

ANALYSIS AND MANAGEMENT ANALYSIS AND MANAGEMENT T H 1RD CANADIAN EDITION W. SEAN CLEARY Queen's University CHARLES P. JONES North Carolina State University JOHN WILEY & SONS CANADA, LTD. CONTENTS PART ONE Background CHAPTER 1

More information

Paper 2. Derivatives Investment Consultant Examination. Thailand Securities Institute November 2014

Paper 2. Derivatives Investment Consultant Examination. Thailand Securities Institute November 2014 Derivatives Investment Consultant Examination Paper 2 Thailand Securities Institute November 2014 Copyright 2014, All right reserve Thailand Securities Institute (TSI) The Stock Exchange of Thailand Page

More information

Review for Exam 1. Instructions: Please read carefully

Review for Exam 1. Instructions: Please read carefully Review for Exam 1 Instructions: Please read carefully The exam will have 21 multiple choice questions and 5 work problems. Questions in the multiple choice section will be either concept or calculation

More information

NASAA Investment Adviser Competency Exam (Series 65) Exam Specifications and Outline (Effective 1/1/2010)

NASAA Investment Adviser Competency Exam (Series 65) Exam Specifications and Outline (Effective 1/1/2010) NASAA Investment Adviser Competency Exam (Series 65) Exam Specifications and Outline (Effective 1/1/2010) CONTENT AREA # of Items 1. Economic Factors and Business Information 19 (14%) A. Basic economic

More information

Exam 1 Sample Questions

Exam 1 Sample Questions Exam 1 Sample Questions 1. Asset allocation refers to. A. the allocation of the investment portfolio across broad asset classes B. the analysis of the value of securities C. the choice of specific assets

More information

Review for Exam 1. Instructions: Please read carefully

Review for Exam 1. Instructions: Please read carefully Review for Exam 1 Instructions: Please read carefully The exam will have 20 multiple choice questions and 5 work problems. Questions in the multiple choice section will be either concept or calculation

More information

Fundamentals of Investing

Fundamentals of Investing Fundamentals of Investing Fundamentals of Investing, International Edition Table of Contents Cover Contents Part One: Preparing to Invest Chapter 1 The Investment Environment Investments and the Investment

More information

Global Investments. Bruno Solnik HEC PARIS HONG KONG UNIVERSITY OF SCIENCE & TECHNOLOGY. Dennis McLeavey

Global Investments. Bruno Solnik HEC PARIS HONG KONG UNIVERSITY OF SCIENCE & TECHNOLOGY. Dennis McLeavey Global Investments SIXTH EDITION Bruno Solnik HEC PARIS HONG KONG UNIVERSITY OF SCIENCE & TECHNOLOGY

More information

MODERN PORTFOLIO THEORY AND INVESTMENT ANALYSIS

MODERN PORTFOLIO THEORY AND INVESTMENT ANALYSIS MODERN PORTFOLIO THEORY AND INVESTMENT ANALYSIS EIGHTH EDITION INTERNATIONAL STUDENT VERSION EDWIN J. ELTON Leonard N. Stern School of Business New York University MARTIN J. GRUBER Leonard N. Stern School

More information

FIN 432 Investment Analysis and Management Review Notes for Midterm Exam

FIN 432 Investment Analysis and Management Review Notes for Midterm Exam FIN 432 Investment Analysis and Management Review Notes for Midterm Exam Chapter 1 1. Investment vs. investments 2. Real assets vs. financial assets 3. Investment process Investment policy, asset allocation,

More information

International Investments

International Investments 2008 AGI-Information Management Consultants May be used for personal purporses only or by libraries associated to dandelon.com network. International Investments Bruno Solnik H.E.C. SCHOOL of MANAGEMENT

More information

Investment Analysis & Portfolio Management. Naveed Shahid, ASA, APSA Head of Investments Department EFU Life Assurance Ltd

Investment Analysis & Portfolio Management. Naveed Shahid, ASA, APSA Head of Investments Department EFU Life Assurance Ltd Investment Analysis & Portfolio Management Naveed Shahid, ASA, APSA Head of Investments Department EFU Life Assurance Ltd Course Description: Portfolio management: Characteristics, markets and traditional

More information

Unit01. Introduction, Creation of Financial Assets, and Security Markets

Unit01. Introduction, Creation of Financial Assets, and Security Markets FCS 5510 Concept Review Notes: Midterm Review Notes Unit01. Introduction, Creation of Financial Assets, and Security Markets Chapter 01. Definition of investment Portfolio Primary and secondary markets

More information

CHAPTER 2. Asset Classes. the Money Market. Money market instruments. Capital market instruments. Asset Classes and Financial Instruments

CHAPTER 2. Asset Classes. the Money Market. Money market instruments. Capital market instruments. Asset Classes and Financial Instruments 2-2 Asset Classes Money market instruments CHAPTER 2 Capital market instruments Asset Classes and Financial Instruments Bonds Equity Securities Derivative Securities The Money Market 2-3 Table 2.1 Major

More information

FINANCIAL PLANNING ASSOCIATION OF MALAYSIA

FINANCIAL PLANNING ASSOCIATION OF MALAYSIA FINANCIAL PLANNING ASSOCIATION OF MALAYSIA MODULE 4 INVESTMENT PLANNING Course Objectives To understand the concepts of risk and return, the financial markets and the various financial instruments available,

More information

An Introduction to Institutions, Management, & Investments

An Introduction to Institutions, Management, & Investments An Introduction to Institutions, Management, & Investments TEMTH EBITIQM HERBERT B. MAYO The College of New Jersey *\ SOUTH-WESTERN t% CENGAGE Learning- Australia Brazil Japan Korea Mexico Singapore Spain

More information

Review for Exam 2. Instructions: Please read carefully

Review for Exam 2. Instructions: Please read carefully Review for Exam Instructions: Please read carefully The exam will have 1 multiple choice questions and 5 work problems. Questions in the multiple choice section will be either concept or calculation questions.

More information

CONTENTS MODULE 1: INDUSTRY OVERVIEW 4 MODULE 2: ETHICS AND REGULATION 6 MODULE 3: INPUTS AND TOOLS 8 MODULE 4: INVESTMENT INSTRUMENTS 12

CONTENTS MODULE 1: INDUSTRY OVERVIEW 4 MODULE 2: ETHICS AND REGULATION 6 MODULE 3: INPUTS AND TOOLS 8 MODULE 4: INVESTMENT INSTRUMENTS 12 SYLLABUS OVERVIEW 1 CONTENTS MODULE 1: INDUSTRY OVERVIEW 4 CHAPTER 1 The Investment Industry: A Top-Down View MODULE 2: ETHICS AND REGULATION 6 CHAPTER 2 CHAPTER 3 Ethics and Investment Professionalism

More information

INVESTMENT DICTIONARY

INVESTMENT DICTIONARY INVESTMENT DICTIONARY Annual Report An annual report is a document that offers information about the company s activities and operations and contains financial details, cash flow statement, profit and

More information

2011 Table 2 - Investment principles and risk pages 8 to 12

2011  Table 2 - Investment principles and risk pages 8 to 12 Investment principles and risk (R02) Wizard Learning Investment priciples and risk Online Course contents Gap covered as per the FSA gap fill template from final RDR rules (PS11/01) from January 2011 www.fsa.gov.uk/smallfirms/your_firm_type/financial/pdf/gap_fill_template.pdf

More information

ADVANCED FINANCIAL MANAGEMENT PAPER 16

ADVANCED FINANCIAL MANAGEMENT PAPER 16 ADVANCED FINANCIAL MANAGEMENT PAPER 16 SYLLABUS CHART Advanced Financial Management Paper 16 Financial Management Paper 11 OVERALL AIM To enable the learner broaden their knowledge and skills, and exercise

More information

Fundamentals of INVESTING

Fundamentals of INVESTING Fundamentals of INVESTING ELEVENTH EDITION LAWRENCE J. GITMAN, CFP San Diego State University MICHAEL D. JOEHNK, CFA Arizona State University SCOTT B. SMART indiana University Boston Columbus Indianapolis

More information

CHAPTER 11 INTRODUCTION TO SECURITY VALUATION TRUE/FALSE QUESTIONS

CHAPTER 11 INTRODUCTION TO SECURITY VALUATION TRUE/FALSE QUESTIONS 1 CHAPTER 11 INTRODUCTION TO SECURITY VALUATION TRUE/FALSE QUESTIONS (f) 1 The three step valuation process consists of 1) analysis of alternative economies and markets, 2) analysis of alternative industries

More information

Options Markets: Introduction

Options Markets: Introduction Options Markets: Introduction Chapter 20 Option Contracts call option = contract that gives the holder the right to purchase an asset at a specified price, on or before a certain date put option = contract

More information

Finance. Undergraduate Program of Study. Graduate Program of Study. Courses. Certificate in Risk Management and Insurance. Doctor of Philosophy

Finance. Undergraduate Program of Study. Graduate Program of Study. Courses. Certificate in Risk Management and Insurance. Doctor of Philosophy University of Iowa 2015-16 General Catalog 1 Finance Chair Erik Lie Undergraduate major: finance (B.B.A.) Graduate degree: finance subprogram for the Ph.D. in business administration Faculty: http://tippie.uiowa.edu/finance/faculty.cfm

More information

RISKS IN MUTUAL FUND INVESTMENTS

RISKS IN MUTUAL FUND INVESTMENTS RISKS IN MUTUAL FUND INVESTMENTS Classification of Investors Investors can be classified based on their Risk Tolerance Levels : Low Risk Tolerance Moderate Risk Tolerance High Risk Tolerance Fund Classification

More information

2015 Exam 2 Syllabus Financial Mathematics Exam

2015 Exam 2 Syllabus Financial Mathematics Exam 2015 Exam 2 Syllabus Financial Mathematics Exam The syllabus for this exam is defined in the form of learning objectives that set forth, usually in broad terms, what the candidate should be able to do

More information

Market and Exercise Price Relationships. Option Terminology. Options Trading. CHAPTER 15 Options Markets 15.1 THE OPTION CONTRACT

Market and Exercise Price Relationships. Option Terminology. Options Trading. CHAPTER 15 Options Markets 15.1 THE OPTION CONTRACT CHAPTER 15 Options Markets 15.1 THE OPTION CONTRACT Option Terminology Buy - Long Sell - Short Call the right to buy Put the the right to sell Key Elements Exercise or Strike Price Premium or Price of

More information

The Master of Science in Finance (English Program) - MSF. Department of Banking and Finance. Chulalongkorn Business School. Chulalongkorn University

The Master of Science in Finance (English Program) - MSF. Department of Banking and Finance. Chulalongkorn Business School. Chulalongkorn University The Master of Science in Finance (English Program) - MSF Department of Banking and Finance Chulalongkorn Business School Chulalongkorn University Overview of Program Structure Full Time Program: 1 Year

More information

Introduction to Financial Models for Management and Planning

Introduction to Financial Models for Management and Planning CHAPMAN &HALL/CRC FINANCE SERIES Introduction to Financial Models for Management and Planning James R. Morris University of Colorado, Denver U. S. A. John P. Daley University of Colorado, Denver U. S.

More information

Security Analysis and Portfolio Management FIN-321-TE

Security Analysis and Portfolio Management FIN-321-TE Security Analysis and Portfolio Management FIN-321-TE This TECEP is an introduction to investment alternatives, security analysis, and portfolio construction. Topics include: the environment in which investment

More information

SAMPLE MID-TERM QUESTIONS

SAMPLE MID-TERM QUESTIONS SAMPLE MID-TERM QUESTIONS William L. Silber HOW TO PREPARE FOR THE MID- TERM: 1. Study in a group 2. Review the concept questions in the Before and After book 3. When you review the questions listed below,

More information

Financial Mathematics Exam

Financial Mathematics Exam 2014 Exam 2 Syllabus Financial Mathematics Exam The purpose of the syllabus for this examination is to develop knowledge of the fundamental concepts of financial mathematics and how those concepts are

More information

Glossary of Investment Terms

Glossary of Investment Terms online report consulting group Glossary of Investment Terms glossary of terms actively managed investment Relies on the expertise of a portfolio manager to choose the investment s holdings in an attempt

More information

Real Estate Finance in India

Real Estate Finance in India Real Estate Finance in India Prashant Das Divyanshu Sharma < SAGE M I Business Books www.sagepublications.com Los Angeles London New Delhi Singapore» Washington DC Contents ListofTables List offigures

More information

CAIA Level I. An Introduction to Core Topics in Alternative Investments. 2nd Edition. Wiley Finance

CAIA Level I. An Introduction to Core Topics in Alternative Investments. 2nd Edition. Wiley Finance Brochure More information from http://www.researchandmarkets.com/reports/2213116/ CAIA Level I. An Introduction to Core Topics in Alternative Investments. 2nd Edition. Wiley Finance Description: The official

More information

Readings and Learning Outcome Statements Study Session 16 Derivative Investments: Forwards and Futures... 9

Readings and Learning Outcome Statements Study Session 16 Derivative Investments: Forwards and Futures... 9 Book 5 Derivatives and Portfolio Management Readings and Learning Outcome Statements... 3 Study Session 16 Derivative Investments: Forwards and Futures... 9 Study Session 17 Derivative Investments: Options,

More information

Assumptions: No transaction cost, same rate for borrowing/lending, no default/counterparty risk

Assumptions: No transaction cost, same rate for borrowing/lending, no default/counterparty risk Derivatives Why? Allow easier methods to short sell a stock without a broker lending it. Facilitates hedging easily Allows the ability to take long/short position on less available commodities (Rice, Cotton,

More information

COMMUNITY FOUNDATION OF GREATER MEMPHIS, INC. INVESTMENT GUIDELINES FOR MONEY MARKET POOL

COMMUNITY FOUNDATION OF GREATER MEMPHIS, INC. INVESTMENT GUIDELINES FOR MONEY MARKET POOL INVESTMENT GUIDELINES FOR MONEY MARKET POOL discretionary Money Market Pool is expected to pursue their stated investment strategy and follow the investment guidelines and objectives set forth herein.

More information

MSc Finance and Economics detailed module information

MSc Finance and Economics detailed module information MSc Finance and Economics detailed module information Example timetable Please note that information regarding modules is subject to change. TERM 1 TERM 2 TERM 3 INDUCTION WEEK EXAM PERIOD Week 1 EXAM

More information

INVESTMENT TERM GLOSSARY

INVESTMENT TERM GLOSSARY A Accrued Interest - Interest that has been earned but not yet credited to a bond or other fixed-income investment, such as a certificate of deposit. Active Management The use of professional investment

More information

Jeffrey F. Jaffe Spring Semester 2016 Corporate Finance FNCE 100 Syllabus, page 1. Spring 2016 Corporate Finance FNCE 100 Wharton School of Business

Jeffrey F. Jaffe Spring Semester 2016 Corporate Finance FNCE 100 Syllabus, page 1. Spring 2016 Corporate Finance FNCE 100 Wharton School of Business Corporate Finance FNCE 100 Syllabus, page 1 Spring 2016 Corporate Finance FNCE 100 Wharton School of Business Syllabus Course Description: This course provides an introduction to the theory, the methods,

More information

Introduction to Investments FINAN 3050

Introduction to Investments FINAN 3050 Introduction to Investments FINAN 3050 : Introduction (Syllabus) Investments Background and Issues (Chapter 1) Financial Securities (Chapter 2) Syllabus General Information The course is going to be organized

More information

Review for Exam 2. Instructions: Please read carefully

Review for Exam 2. Instructions: Please read carefully Review for Exam 2 Instructions: Please read carefully The exam will have 25 multiple choice questions and 5 work problems You are not responsible for any topics that are not covered in the lecture note

More information

APPENDIX 1 : Information on Examination Papers and Examination Syllabus

APPENDIX 1 : Information on Examination Papers and Examination Syllabus APPENDIX 1 : Information on Examination Papers and Examination Syllabus Number of questions and distribution by topic*: Paper Paper 1 - Paper 2 - Paper 3 - Paper 4 - Insurance and Tax and Estate Planning

More information

Review for Exam 1. Instructions: Please read carefully

Review for Exam 1. Instructions: Please read carefully Review for Exam 1 Instructions: Please read carefully The exam will have 25 multiple choice questions and 5 work problems covering chapter 1, 2, 3, 4, 14, 16. Questions in the multiple choice section will

More information

This paper is not to be removed from the Examination Halls

This paper is not to be removed from the Examination Halls ~~FN3023 ZA d0 This paper is not to be removed from the Examination Halls UNIVERSITY OF LONDON FN3023 ZA BSc degrees and Diplomas for Graduates in Economics, Management, Finance and the Social Sciences,

More information

Mutual Fund Investing Exam Study Guide

Mutual Fund Investing Exam Study Guide Mutual Fund Investing Exam Study Guide This document contains the questions that will be included in the final exam, in the order that they will be asked. When you have studied the course materials, reviewed

More information

Investment Portfolio Management and Effective Asset Allocation for Institutional and Private Banking Clients

Investment Portfolio Management and Effective Asset Allocation for Institutional and Private Banking Clients Investment Portfolio Management and Effective Asset Allocation for Institutional and Private Banking Clients www.mce-ama.com/2396 Senior Managers Days 4 www.mce-ama.com 1 WHY attend this programme? This

More information

DESCRIPTION OF FINANCIAL INSTRUMENTS AND INVESTMENT RISKS

DESCRIPTION OF FINANCIAL INSTRUMENTS AND INVESTMENT RISKS DESCRIPTION OF FINANCIAL INSTRUMENTS AND INVESTMENT RISKS A. General The services offered by Prochoice Stockbrokers cover a wide range of Financial Instruments. Every type of financial instrument carries

More information

Balanced fund: A mutual fund with a mix of stocks and bonds. It offers safety of principal, regular income and modest growth.

Balanced fund: A mutual fund with a mix of stocks and bonds. It offers safety of principal, regular income and modest growth. Wealth for Life Glossary Aggressive growth fund: A mutual fund that aims for the highest capital gains. They often invest in smaller emerging companies that offer maximum growth potential. Adjustable Rate

More information

Financial Instruments. Chapter 2

Financial Instruments. Chapter 2 Financial Instruments Chapter 2 Major Types of Securities debt money market instruments bonds common stock preferred stock derivative securities 1-2 Markets and Instruments Money Market debt instruments

More information

QUANTITATIVE FINANCIAL ECONOMICS

QUANTITATIVE FINANCIAL ECONOMICS Ill. i,t.,. QUANTITATIVE FINANCIAL ECONOMICS STOCKS, BONDS AND FOREIGN EXCHANGE Second Edition KEITH CUTHBERTSON AND DIRK NITZSCHE HOCHSCHULE John Wiley 8k Sons, Ltd CONTENTS Preface Acknowledgements 2.1

More information

BEAR: A person who believes that the price of a particular security or the market as a whole will go lower.

BEAR: A person who believes that the price of a particular security or the market as a whole will go lower. Trading Terms ARBITRAGE: The simultaneous purchase and sale of identical or equivalent financial instruments in order to benefit from a discrepancy in their price relationship. More generally, it refers

More information

Options/1. Prof. Ian Giddy

Options/1. Prof. Ian Giddy Options/1 New York University Stern School of Business Options Prof. Ian Giddy New York University Options Puts and Calls Put-Call Parity Combinations and Trading Strategies Valuation Hedging Options2

More information

Third Edition. Philippe Jorion GARP. WILEY John Wiley & Sons, Inc.

Third Edition. Philippe Jorion GARP. WILEY John Wiley & Sons, Inc. 2008 AGI-Information Management Consultants May be used for personal purporses only or by libraries associated to dandelon.com network. Third Edition Philippe Jorion GARP WILEY John Wiley & Sons, Inc.

More information

Business Finance. Theory and Practica. Eddie McLaney PEARSON

Business Finance. Theory and Practica. Eddie McLaney PEARSON Business Finance Theory and Practica Eddie McLaney PEARSON Harlow, England London New York Boston San Francisco Toronto Sydney Auckland Singapore Hong Kong Tokyo Seoul Taipei New Delhi Cape Town Säo Paulo

More information

Investment Finance 421-002 Prototype Midterm I

Investment Finance 421-002 Prototype Midterm I Investment Finance 421-002 Prototype Midterm I The correct answer is highlighted by a *. Also, a concise reasoning is provided in Italics. 1. are an indirect way U. S. investor can invest in foreign companies.

More information

Fundamentals of Corporate Finance

Fundamentals of Corporate Finance Fundamentals of Corporate Finance Lamar Savings Centennial Professor of Finance University of Texas at Austin David 8. Kidwell Professor of Finance and Dean Emeritus Universityof Minnesota WILEY John Wiley

More information

Investment Analysis and Portfolio Management

Investment Analysis and Portfolio Management LEONARDO DA VINCI Transfer of Innovation Kristina Levišauskait Investment Analysis and Portfolio Management Leonardo da Vinci programme project Development and Approbation of Applied Courses Based on the

More information

CHAPTER 1 THE INVESTMENT SETTING TRUE/FALSE QUESTIONS

CHAPTER 1 THE INVESTMENT SETTING TRUE/FALSE QUESTIONS CHAPTER 1 THE INVESTMENT SETTING TRUE/FALSE QUESTIONS (t) 1 The rate of exchange between certain future dollars and certain current dollars is known as the pure rate of interest. (t) 2 An investment is

More information

Third Edition BOND MARKETS, ANALYSIS AND STRATEGIES. Frank J. Fabozzi, CFA. Adjunct Professor of Finance School of Management Yale University

Third Edition BOND MARKETS, ANALYSIS AND STRATEGIES. Frank J. Fabozzi, CFA. Adjunct Professor of Finance School of Management Yale University Third Edition BOND MARKETS, ANALYSIS AND STRATEGIES Frank J. Fabozzi, CFA Adjunct Professor of Finance School of Management Yale University PRENTICE HALL, Upper Saddle River, NJ 07458 Preface xi Chapter

More information

CFA Examination PORTFOLIO MANAGEMENT Page 1 of 6

CFA Examination PORTFOLIO MANAGEMENT Page 1 of 6 PORTFOLIO MANAGEMENT A. INTRODUCTION RETURN AS A RANDOM VARIABLE E(R) = the return around which the probability distribution is centered: the expected value or mean of the probability distribution of possible

More information

(Part.1) FOUNDATIONS OF RISK MANAGEMENT

(Part.1) FOUNDATIONS OF RISK MANAGEMENT (Part.1) FOUNDATIONS OF RISK MANAGEMENT 1 : Risk Taking: A Corporate Governance Perspective Delineating Efficient Portfolios 2: The Standard Capital Asset Pricing Model 1 : Risk : A Helicopter View 2:

More information

1. What are the three types of business organizations? Define them

1. What are the three types of business organizations? Define them Written Exam Ticket 1 1. What is Finance? What do financial managers try to maximize, and what is their second objective? 2. How do you compare cash flows at different points in time? 3. Write the formulas

More information

ALLOCATION STRATEGIES A, C, & I SHARES PROSPECTUS August 1, 2015

ALLOCATION STRATEGIES A, C, & I SHARES PROSPECTUS August 1, 2015 ALLOCATION STRATEGIES A, C, & I SHARES PROSPECTUS August 1, 2015 Investment Adviser: RidgeWorth Investments A Shares C Shares I Shares Aggressive Growth Allocation Strategy SLAAX CLVLX CVMGX Conservative

More information

Introduction to Fixed Income (IFI) Course Syllabus

Introduction to Fixed Income (IFI) Course Syllabus Introduction to Fixed Income (IFI) Course Syllabus 1. Fixed income markets 1.1 Understand the function of fixed income markets 1.2 Know the main fixed income market products: Loans Bonds Money market instruments

More information

CFA Examination DERIVATIVES - FUTURES Page 1 of 5

CFA Examination DERIVATIVES - FUTURES Page 1 of 5 DERIVATIVES FUTURES A derivative is a contract or agreement whose value depends upon the price of some other (underlying) commodity, security or index. A. FORWARD CONTRACTS Forward: an agreement between

More information

SOLUTIONS EXAM 2013-10-25 WRITE AS CLEARLY AND DISTINCTLY AS POSSIBLE!

SOLUTIONS EXAM 2013-10-25 WRITE AS CLEARLY AND DISTINCTLY AS POSSIBLE! SOLUTIONS EXAM 2013-10-25 Instructions 1. Only one problem should be treated on each sheet of paper and only one side of the sheet should be used. 2. The solutions folder must be handed in before you leave

More information

Brown Advisory Strategic Bond Fund Class/Ticker: Institutional Shares / (Not Available for Sale)

Brown Advisory Strategic Bond Fund Class/Ticker: Institutional Shares / (Not Available for Sale) Summary Prospectus October 30, 2015 Brown Advisory Strategic Bond Fund Class/Ticker: Institutional Shares / (Not Available for Sale) Before you invest, you may want to review the Fund s Prospectus, which

More information

Financial Statement Analysis and Security Valuation

Financial Statement Analysis and Security Valuation Financial Statement Analysis and Security Valuation Fourth Edition Stephen H. Penman Columbia University McGraw-Hill Irwin Boston Burr Ridge, IL Dubuque, IA Madison, Wl New York San Francisco St. Louis

More information

Chapter 15 - Options Markets

Chapter 15 - Options Markets Chapter 15 - Options Markets Option contract Option trading Values of options at expiration Options vs. stock investments Option strategies Option-like securities Option contract Options are rights to

More information

I. Introduction. II. Financial Markets (Direct Finance) A. How the Financial Market Works. B. The Debt Market (Bond Market)

I. Introduction. II. Financial Markets (Direct Finance) A. How the Financial Market Works. B. The Debt Market (Bond Market) University of California, Merced EC 121-Money and Banking Chapter 2 Lecture otes Professor Jason Lee I. Introduction In economics, investment is defined as an increase in the capital stock. This is important

More information

Certification Program on Corporate Treasury Management

Certification Program on Corporate Treasury Management Certification Program on Corporate Treasury Management Introduction to corporate treasury management Introduction to corporate treasury management: relevance, scope, approach and issues Understanding treasury

More information

CHAPTER 9: THE CAPITAL ASSET PRICING MODEL

CHAPTER 9: THE CAPITAL ASSET PRICING MODEL CHAPTER 9: THE CAPITAL ASSET PRICING MODEL PROBLEM SETS 1. E(r P ) = r f + β P [E(r M ) r f ] 18 = 6 + β P(14 6) β P = 12/8 = 1.5 2. If the security s correlation coefficient with the market portfolio

More information

15.433 INVESTMENTS Class 1: Introduction. Spring 2003

15.433 INVESTMENTS Class 1: Introduction. Spring 2003 15.433 INVESTMENTS Class 1: Introduction Spring 2003 Outline Course Overview Market Overview Introduction to the Financial System Overviews of Equity, Fixed Income, Currencies and Derivatives Financial

More information

Basic Investment Terms

Basic Investment Terms Because money doesn t come with instructions.sm Robert C. Eddy, CFP Margaret F. Eddy, CFP Matthew B. Showley, CFP Basic Investment Terms ANNUITY A financial product sold by financial institutions pay out

More information

Session IX: Lecturer: Dr. Jose Olmo. Module: Economics of Financial Markets. MSc. Financial Economics

Session IX: Lecturer: Dr. Jose Olmo. Module: Economics of Financial Markets. MSc. Financial Economics Session IX: Stock Options: Properties, Mechanics and Valuation Lecturer: Dr. Jose Olmo Module: Economics of Financial Markets MSc. Financial Economics Department of Economics, City University, London Stock

More information

Fundamentals Level Skills Module, Paper F9

Fundamentals Level Skills Module, Paper F9 Answers Fundamentals Level Skills Module, Paper F9 Financial Management December 2008 Answers 1 (a) Rights issue price = 2 5 x 0 8 = $2 00 per share Theoretical ex rights price = ((2 50 x 4) + (1 x 2 00)/5=$2

More information

NIKE Case Study. Professor Corwin. An overview of the individual questions and their relation to the lecture topics is provided below.

NIKE Case Study. Professor Corwin. An overview of the individual questions and their relation to the lecture topics is provided below. NIKE Case Study Professor Corwin This case study includes several problems related to the valuation of Nike. We will work through these problems throughout the course to demonstrate some of the most important

More information

FIN 472 Fixed-Income Securities Forward Rates

FIN 472 Fixed-Income Securities Forward Rates FIN 472 Fixed-Income Securities Forward Rates Professor Robert B.H. Hauswald Kogod School of Business, AU Interest-Rate Forwards Review of yield curve analysis Forwards yet another use of yield curve forward

More information

Investment Portfolio Management Techniques for Fixed Income, Equity and Alternative Investments

Investment Portfolio Management Techniques for Fixed Income, Equity and Alternative Investments Investment Portfolio Management Techniques for Fixed Income, Equity and Alternative Investments www.mce-ama.com/2400 Senior Managers Days 4 www.mce-ama.com 1 WHY attend this programme? Managing an investment

More information

Foundations of Financial Management

Foundations of Financial Management Foundations of Financial Management FOURTEENTH EDITION Stanley B. Block Texas Christian University Geoffrey A. Hirt DePaul University Bartley R. Danielsen North Carolina State University Me Graw Hill McGraw-Hill

More information

Asset Liability Management Techniques in Private Banking

Asset Liability Management Techniques in Private Banking EDHEC Asset Management Days 2007 Geneva, March 12 th 10:00-11:30 Asset Liability Management Techniques in Private Banking Lionel Martellini Professor of Finance, EDHEC Business School Scientific Director,

More information

LOCKING IN TREASURY RATES WITH TREASURY LOCKS

LOCKING IN TREASURY RATES WITH TREASURY LOCKS LOCKING IN TREASURY RATES WITH TREASURY LOCKS Interest-rate sensitive financial decisions often involve a waiting period before they can be implemen-ted. This delay exposes institutions to the risk that

More information

Fixed Income Securities

Fixed Income Securities 3st lecture IES, UK October 7, 2015 Outline Bond Characteristics 1 Bond Characteristics 2 Bond Characteristics Government bond listing Rate Maturity mo/yr Bid Asked Chg Ask yld 3.000 July 12 108:22 108:23-20

More information

Futures Price d,f $ 0.65 = (1.05) (1.04)

Futures Price d,f $ 0.65 = (1.05) (1.04) 24 e. Currency Futures In a currency futures contract, you enter into a contract to buy a foreign currency at a price fixed today. To see how spot and futures currency prices are related, note that holding

More information

Answers to Concepts in Review

Answers to Concepts in Review Answers to Concepts in Review 1. Bonds are appealing to investors because they provide a generous amount of current income and they can often generate large capital gains. These two sources of income together

More information

Tax Planning for Specific Types of Investments

Tax Planning for Specific Types of Investments SC Financial Group, LLC. 1417 116th Ave NE Suite 202 Bellevue, WA 98004 425-451-2950 Fax: (425) 451-2888 office@scfinancialgroup.com www.scfinancialgroup.com Tax Planning for Specific Types of Investments

More information

MSc Accounting and Finance detailed module information

MSc Accounting and Finance detailed module information MSc Accounting and Finance detailed module information Example timetable Please note that information regarding modules is subject to change. TERM 1 TERM 2 TERM 3 INDUCTION WEEK EXAM PERIOD Week 1 EXAM

More information

ApEx 2. Investment and Risk

ApEx 2. Investment and Risk ApEx 2 Investment and Risk 1 Summary of Learning Outcomes AES1/200504 Financial Services Skills Council 2004 16 2 LEARNING OUTCOME H1 INTEGRATED LEARNING OUTCOME FOR THE APPROPRIATE EXAMINATIONS STANDARDS

More information

STATEMENT OF POLICY AND INVESTMENT OBJECTIVES. The University of North Carolina at Pembroke Endowment Board. and

STATEMENT OF POLICY AND INVESTMENT OBJECTIVES. The University of North Carolina at Pembroke Endowment Board. and STATEMENT OF POLICY AND INVESTMENT OBJECTIVES The University of North Carolina at Pembroke Endowment Board and The University of North Carolina at Pembroke Foundation, Inc. December 1, 2010 TABLE OF CONTENTS

More information

Last update: December 19, 2013. Global Master of Finance Dual Degree Course Descriptions. Foundation Courses. FIN B62 510. Introduction to Finance

Last update: December 19, 2013. Global Master of Finance Dual Degree Course Descriptions. Foundation Courses. FIN B62 510. Introduction to Finance Last update: December 19, 2013 Global Master of Finance Dual Degree Course Descriptions Foundation Courses FIN B62 510. Introduction to Finance The main topics to be covered in this course are (1) principles

More information

London School of Economics FM423 - FT - 2008-9. Course Syllabus

London School of Economics FM423 - FT - 2008-9. Course Syllabus London School of Economics FM423 - FT - 2008-9 Department of Finance Vayanos - Yuan - Zachariadis Course Syllabus Course Description This is the core investments course in the MSc Finance Full-Time Programme.

More information

Currency Futures and Forward Contracts

Currency Futures and Forward Contracts Currency Futures and Forward Contracts by Geneviève Payette presented to Gregor Smith Queen s University January 28, 2005 In the past 30 years exchange rates have become much more volatile and less predictable

More information

STAT2400 STAT2400 STAT2400 STAT2400 STAT2400 STAT2400 STAT2400 STAT2400&3400 STAT2400&3400 STAT2400&3400 STAT2400&3400 STAT3400 STAT3400

STAT2400 STAT2400 STAT2400 STAT2400 STAT2400 STAT2400 STAT2400 STAT2400&3400 STAT2400&3400 STAT2400&3400 STAT2400&3400 STAT3400 STAT3400 Exam P Learning Objectives All 23 learning objectives are covered. General Probability STAT2400 STAT2400 STAT2400 STAT2400 STAT2400 STAT2400 STAT2400 1. Set functions including set notation and basic elements

More information