Investments: Theory, Behavioral Aspects and Applications

Investments: Theory, Behavioral Aspects & Application covers behavioral aspects ofinvesting, investment strategies including buy and sell disciplines, technical analysis, plus the more standard textbook topics of security valuation and risk analysis, asset class management, investment applications, derivative valuation, portfolio construction and investment evaluation. The behavioral topics range from psychological factors to "deadly sins" of financial decision making. As part of the...
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Investments: Theory, Behavioral Aspects & Application covers behavioral aspects ofinvesting, investment strategies including buy and sell disciplines, technical analysis, plus the more standard textbook topics of security valuation and risk analysis, asset class management, investment applications, derivative valuation, portfolio construction and investment evaluation. The behavioral topics range from psychological factors to "deadly sins" of financial decision making. As part of the behavioral aspects a brief overview of technical analysis is also presented. A brief overview of personal finance is also included as an appendix. The main body of the book is divided into five sections and the chapters present the material in a dot point format that allows the reader to get the essence of the material quickly, followed by expanded explanations of the material - a different format from most textbooks. For the more advanced reader the dot points provide a synopsis and allows the reader to decide if they need to refresh their knowledge or if they need to expand their knowledge by reading the expanded material. For the less advanced reader the dot point provides a summary of the material and prepares the reader for the expanded material, which fills in the details for a fuller understanding of the topics presented. The first two chapters set the stage for investing by presenting various elements of investment management and behavioral aspects. These chapters help lay out the environment in which investors and others operate. The next three chapters present the basic valuation and risk characteristics of bonds and stocks. Bonds and stocks are two main asset classes that are large, global, part of "everyone's portfolio," and are the basis for many derivative instruments. Next we turn our attention to strategies and applications. Disciplined stock selection and tactics are presented in Chapter 6, while the most important decisions relating to investing, namely asset allocation, is discussed in Chapter 7. Styles and strategies, and global investing are then presented in the next two chapters respectively. Chapter 10 presents the term structure of interest rates and bond strategies. Our attention then turns to derivative securities in Chapters 11 and 12. The book concludes with a brief introduction to modern portfolio theory and investment performance evaluation.Our goal in this book is to blend the theory of investments and asset pricing with thebehavioral side of investing and introducing "pragmatic applications." Because of the cover ice fishing is related to investing - it helps to expand the minds of the reader and hopefully teaches them to think outside the box and expand their horizons. We also recognize that the savings and investment process is dependent on individual choice and the decisions regarding the appropriate investments should be based on risk tolerance.If you are interested in adopting this book for your investments course please contact:Dr. Walter J. ReinhartLoyola University Graduate Center2034 Greenspring DriveTimonium, MD 21093If you are just a casual reader, or an interested investor you should the find the book helpful in your quest to successfully invest. If you have questions or suggestions please contact the author at the above address.