In this book, the author draws from finance, psychology, economics, and other disciplines in business and the social sciences, recognising that personal finance and investments are subjects of study in their own right rather than merely branches of another discipline. Considerable attention is given to topics which are either ignored or given very little attention in other texts. These include: the psychology of investment decision-makingstock market bubbles and crashesproperty investmentthe use of derivatives in investment managementregulation of investments business.More traditional subject areas are also thoroughly covered, including: investment analysis portfolio management capital market theory market efficiency international investingbond markets institutional investmentsoption pricingmacroeconomicsthe interpretation of company accounts.Packed with over one hundred exercises, examples and exhibits and a helpful glossary of key terms, this book helps readers grasp the relevant principles of money management. It avoids non-essential mathematics and provides a novel new approach to the study of personal finance and investments. This book will be essential for students and researchers engaged with personal finance, investments, behavioural finance, financial derivatives and financial economics. This book also comes with a supporting website that includes two updated chapters, a new article featuring a behavioural model of the dot com, further exercises, a full glossary and a regularly updated blog from the author.
Keith Redhead is Principal Lecturer in the Department of Economics, Finance and Accounting at Coventry University Business School. He is also the author of "Introducing Investments: A Personal Finance Approach" and "Financial Derivatives: An Introduction to Futures, Forwards, Options and Swaps".
CONTENTSPrefaceChapter 1 – Introduction Chapter 2 - The Psychology of Personal Investment Decisions, Basics of Money, Bond and Property MarketsChapter 3 – Interest Rates and Money Market InvestmentsChapter 4 - Investing in BondsChapter 5 – Property Investment and Mortgages, Basics of Stock MarketsChapter 6 - Stock ExchangesChapter 7 - Stock IndicesChapter 8 - The Rationale and Conduct of Regulation, Institutional InvestmentsChapter 9 - Mutual Funds (Unit Trusts, OEICs, Investment Trusts)Chapter 10 - Life Assurance and Assurance-Related InvestmentsChapter 11 - PensionsChapter 12 - The Importance and Significance of Institutional Investors, Capital Market TheoryChapter 13 - Portfolio DiversificationChapter 14 - Capital Market Theory: The Capital Asset Pricing ModelChapter 15 - Capital Market Theory: Alternatives and Criticisms, Portfolio ManagementChapter 16 - Styles of Portfolio ConstructionChapter 17 - Evaluating the Performance of Fund Managers, Investment AnalysisChapter 18 - The Economic EnvironmentChapter 19 - Dividend Discount Models Chapter 20 - Company Accounts and Economic Value AddedChapter 21 – Ratio AnalysisChapter 22 - Technical Analysis, Market EfficiencyChapter 23 - Market Efficiency: Concepts and Weak Form EvidenceChapter 24 - Noise Trading and Behavioural FinanceChapter 25 - Market AnomaliesChapter 26 - Further Evidence on Market EfficiencyChapter 27 - Stock Market Bubbles and Crashes, Stock Index FuturesChapter 28 - Stock Index FuturesChapter 29 - Stock Index Futures PricesChapter 30 - Hedging with Stock Index Futures, Stock OptionsChapter 31 - Stock OptionsChapter 32 – Speculation with Stock OptionsChapter 33 - Hedging with OptionsChapter 34 – Structured ProductsChapter 35 – Warrants, Convertibles, and Split-CapsChapter 36 – Option Pricing and the Black-Scholes ModelChapter 37 – Variations on the Basic Black-Scholes Option Pricing ModelChapter 38 – The Binomial Option Pricing Model, International Investing: Using Currency DerivativesChapter 39 - Currency Forwards, Futures, Swaps and Options, Bond and Interest Rate AnalysisChapter 40 - Bond Prices and Redemption YieldsChapter 41 - Duration and RiskChapter 42 - Bond Price ConvexityChapter 43 - Bond FuturesChapter 44 -Yield Curves and Interest Rate FuturesChapter 45 – Interest Rate Swaps