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Security Analysis and Portfolio Management integrates the many topics of modern investment analysis. It provides a balanced presentation of theories, institutions, markets, academic research and practical applications, and presents both basic concepts and advanced principles. Topic coverage is especially broad: in analyzing securities, we look at stocks and bonds, options and futures, foreign exchange, and international securities. A unique chapter on market indices teaches students the basics of index information, calculation, and usage and illustrates the important roles that these indices play in model formation, performance evaluation, investment strategy and hedging techniques. In addition, complete sections on program trading, portfolio insurance, duration and bond immunization, performance measurements and the timing of stock selection provide real-world applications of investment theory.

Security Analysis and Portfolio Management first discusses how finance theory and statistical and mathematical tools can be used effectively to analyze and determine the market value of bonds, stocks, issues related to equity portfolios, bond portfolios, and international portfolios. For equity-portfolio selection, the text discusses Markowitz’s full-information methods, Sharpe’s index methods, and the performance measure method of Treynor and Jensen. Finally, the efficient-market hypothesis, mutual-fund timing and selectivity, and portfolio insurance are also explored in detail.

In this book a sincere attempt has been made to highlight the Security analysis and portfolio Management concepts. The various and varied aspects of the problems have been logically discussed and systematically presented. The author hopes that the book will prove to be useful for the students in attaining their learning objectives.