Portfolio Theory & Financial Analyses: Exercises
This Exercise book and theory text evaluate Modern Portfolio Theory (Markowitz, CAPM and APT) for future study. From the original purpose of MPT through to asset investment by management, we learn why anybody today with the software and a reasonable financial education can model portfolios. However, one lesson from the 2007 meltdown is that computer driven models are so complex that hardly anybody understands what is going on. Returning to first principles, we learn why investors and not their computers should always interpret their results. Moreover, MPT is a guide to action and not a substitute. Investors should understand the models that underpin the computer programmes they
This Exercise book and theory text evaluate Modern Portfolio Theory (Markowitz, CAPM and APT) for future study. From the original purpose of MPT through to asset investment by management, we learn why anybody today with the software and a reasonable financial education can model portfolios. However, one lesson from the 2007 meltdown is that computer driven models are so complex that hardly anybody understands what is going on. Returning to first principles, we learn why investors and not their computers should always interpret their results. Moreover, MPT is a guide to action and not a substitute. Investors should understand the models that underpin the computer programmes they
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Behavioural Finance
By: Peter Dybdahl Hede
The content of this book has become ever more relevant after the recent 2007-2009 and 2011 financial crises, one consequence of which was greatly increased scepticism among investment professionals about the received wisdom drawn from standard finance, modern portfolio theory and its later developments. Modern portfolio theory suddenly appeared terribly old-fashioned and out of date for a very sim...
Company Valuation and Share Price
By: Robert Alan Hill
This free book provides a guide to company share valuation in today’s volatile markets using asset values, earnings, dividend policy, cash flow analysis and behavioural theory. The case for efficient markets and performance measures (based on yields and P/E ratios) published by stock exchanges worldwide are critically examined to illustrate how investors (private, institutional and corporate) sh...