Portfolio construction, management and protection

Pt. 1. Background, basic principles, and investment policy.
1. The process of portfolio management
2. The two key concepts in finance
3. A review of statistical principles useful in finance
4. Setting portfolio objectives
App. Mutual fund evaluation term project
5. Investment policy
App. Sample statements of investment policy
Pt. 2. Portfolio construction.
6. The mathematics of diversification
7. Why diversification is a good idea
App. Stochastic dominance
8. International investment and diversification
9. The capital markets and market efficiency
10. Picking the equity players
App. The special case of preferred stock
11. Security screening
12. Bond prices and the importance of duration
13. Bond selection
14. The role of real assets
Pt. 3. Portfolio management.
15. Revision of the equity portfolio
16. Revision of the fixed-income portfolio
17. Principles of options and option pricing
18. Option overwriting
19. Performance evaluation
20. Fiduciary duties and responsibilities
Pt. 4. Portfolio protection and emerging topics.
21. Principles of the futures market
22. Benching the equity players
23. Removing interest rate risk
24. Integrating derivative assets and portfolio management
25. Contemporary issues in portfolio management.
Glossary
Index

This applications-oriented text transitions from theory to practice in a clear, straightforward manner. An ideal text for schools that do not have a "pure" portfolio course, it accomplishes the objectives of both a traditional investments course and a portfolio theory course. The book balances coverage of both the small and large investor and offers unique coverage of topics not found in other texts, such as fiduciary duty and investment policy. Numerous references and questions from the CFA exam are also included.