This book provides an overview of the evolution of investment and risk, together with a synthesis of research on these developments. It explores how exposures can be modified by measuring and managing them and introduces readers to the latest strategies and trends in investment. Broad in scope, the book covers the most important aspects of investment risk management, including the time value of money, financial markets, equity markets, bond markets, and portfolio theory. Accordingly, it offers a valuable asset for advanced undergraduate and graduate finance students, investors and academics alike.
Author(s): Mihail Busu
Series: Business Guides on the Go
Publisher: Springer
Year: 2022
Language: English
Pages: 162
City: Cham
Contents
1: Introduction
References
2: Time Value of Money
2.1 Simple Interest
2.1.1 Solved Problems
2.1.2 Applications
2.2 Compound Interest
2.2.1 Solved Problems
2.2.2 Applications
3: Financial Markets
3.1 Monetary Market
3.2 Capital Market
3.2.1 Instruments Presented on the Capital Market
3.2.2 Solved Problems
3.2.3 Applications
4: Stock Market
4.1 Value and Price of the Stocks
4.2 Stock Valuation
4.2.1 Solved Problems
4.2.2 Applications
4.3 Dividend Valuation Models
4.3.1 Zero Growth Model
4.3.2 Constant Growth Model
4.3.3 Multiple Growth Model
4.4 Valuation Based on a Finite Holding Period
4.4.1 Solved Problems
4.4.2 Applications
5: Bond Market
5.1 Bond Structure
5.2 Types of Bonds
5.2.1 International Bonds
5.3 Clauses Associated with the Bonds
5.4 Additional Rights
5.5 Factors that Influence and Determine the Value of Bonds
5.6 Financial Evaluation of the Bonds
5.6.1 Solved Problems
5.6.2 Applications
6: Portfolio Theory
6.1 One and Two-Stock Portfolios
6.1.1 Risk and Return of a Portfolio
6.1.2 Solved Problems
6.1.3 Applications
6.2 Three-Stock Portfolios
6.2.1 Solved Problems
6.2.2 Applications
6.3 Efficient Portfolios Consisting of Two Risky Assets
6.3.1 Minimum Risk for a Fixed Return
6.3.2 Solved Problems
6.3.3 Maximum Return
6.3.4 Solved Problems
6.3.5 Applications
7: Derivatives
7.1 Options
7.2 Standardized Options
7.2.1 Interest Rate Contracts
7.3 CALL Option
7.4 PUT Option
7.5 Option Strategies
7.5.1 Strategies for Hedge
7.5.2 Options Trading Strategies on Spread
7.5.3 Strategies Using Combinations of Call and Options Put
8: Summary Problems
