

Finance
Preface 9
Chapter 1 Finance 13
Chapter 2 Financial Institutions and Markets 19
2.1 Financial Institutions 20
2.2 Financial Markets 28
2.3 Summary 35
Key Points 36
Chapter 3 Financial Arithmetic 39
3.1 Asset Returns 40
3.2 Future Value Calculation – Compounding 41
3.3 Present Value Calculation – Discounting 44
3.4 Effective Annual Interest Rates 45
3.5 Risky and Non-Risky Future Cash Flows 48
3.6 Summary 50
Key Points 50
Chapter 4 Financial Instruments: Prices and Risks 53
4.1 The Law of One Price – Arbitrage 54
4.2 Financial Risk – Important Concepts 58
4.3 Financial Risk Measurement 60
4.4 Financial Risk Management 65
4.5 Summary 70
Key Points 70
Chapter 5 Bonds (Debt) 75
5.1 Annuities 76
5.2 Zero-Coupon Bonds 79
5.3 Coupon Bonds 81
5.4 Bond Prices, Time and Interest Rates 83
5.5 Government Bonds versus Corporate Bonds 88
5.6 Summary 91
Key Points 91
Chapter 6 Stocks (Equity) 97
6.1 Dividends 98
6.2 Pricing Stocks 99
6.3 Stock Prices and Psychology – The Beauty Contest 104
6.4 Fundamental Analysis versus Technical Analysis 107
6.5 Summary 110
Key Points 110
Chapter 7 Forwards and Futures 113
7.1 Forwards and Futures – The Basics 114
7.2 Forwards and Futures – Risk Management Tools 118
7.3 Forward (Futures) Pricing 119
7.4 Forwards and Futures – Predictors of Spot Prices? 123
7.5 Summary 125
Key Points 126
Chapter 8 Options 129
8.1 Some Background 130
8.2 Options and Forwards – Similar but Different 132
8.3 Basic Option Terminology 133
8.4 Payoff Diagrams 139
8.5 Put-Call Parity 146
8.6 What Determines the Option Price? 149
8.7 Option Pricing – The Black-Scholes Formula 153
8.8 Summary 156
Key Points 157
Chapter 9 Investment Portfolio Choice I: The Mean-Variance Framework 163
9.1 Investment Portfolio Choice – The Basics 164
9.2 Portfolio Returns, Risks and Correlations 165
9.3 The Mean-Variance Framework 169
9.4 Two-Fund Separation 179
9.5 Summary 180
Key Points 181
Chapter 10 Investment Portfolio Choice II: …|The Capital Asset Pricing Model (CAPM) 187
10.1 CAPM – The Basics 188
10.2 General Implications 190
10.3 Risk Premiums on Risky Assets 193
10.4 Portfolio Choice 196
10.5 Stock Pricing 197
10.6 Summary 199
Key Points 200
Chapter 11 Market Efficiency 205
11.1 Are Markets Efficient? 206
11.2 Weak Market Efficiency 209
11.3 Semi-Strong Market Efficiency 213
11.4 Strong Market Efficiency 213
11.5 Stock Market Anomalies 215
11.6 Summary 218
Key Points 219
Chapter 12 Credit 221
12.1 Corporate Bonds 222
12.2 Credit Rating Agencies 226
12.3 The Basel II Regulatory Framework 229
12.4 Credit Risk Models 232
12.5 Credit Derivatives 234
12.6 Summary 238
Key Points 239
Appendix Basic Mathematical Statistics 241
A.1 Random Variables 241
A.2 Probability Distributions 242
A.3 Means and Variances 244
A.4 Correlation 245
A.5 Just Another Example 246
References 249
Index 251
Information
- Författare:
- Hans Byström
- Språk:
- Engelska
- ISBN:
- 9789144138312
- Utgivningsår:
- 2007
- Revisionsår:
- 2020
- Artikelnummer:
- 33042-04
- Upplaga:
- Fjärde
- Sidantal:
- 256