Security Analysis and Portfolio Management (7th Edition)

Description

Security Analysis and Portfolio Management, 7th Edition is a classical text about investing in securities. It is aimed at providing a comprehensive introduction to the areas of security analysis and portfolio management. The text emphasizes the aspects of the subject by using detailed real-world examples throughout. An attempt has been made to make the text as nonmathematical as possible. Only simple algebra and some elementary statistics are used in the book.

This book is a simple and concise text on the subject of security analysis and portfolio management. It is targeted towards those who do not have prior background in finance, and hence the text veers away from rather complicated formulations and discussions. The course ‘Security Analysis and Portfolio Management’ is usually taught as an elective for students specializing in financial management, and the authors have an experience of teaching this course for more than two decades.

The book contains real empirical evidence and examples in terms of returns, risk and price multiples from the Indian equity markets (over the past two decades) that are a result of the analysis undertaken by the authors themselves. This empirical evidence and analysis help the reader in understanding basic concepts through real data of the Indian stock market. To drive home concepts, each chapter has many illustrations and case-lets citing real-life examples and sections called ‘points to ponder’ to encourage independent thinking and critical examination. For practice, each chapter has many numericals, questions, and assignments

Key Features

• A new Chapter 3 dealing with the concept of returns and risk, and qualification of that risk in terms of a surrogate, that is, standard deviation.
• The original Chapter 3 has been integrated with chapters 17, 18, and 19 and rearranged into chapters 3, 4, 5, and 6.
• A discussion on Discounted Cash Flow method of valuing a company and a practical example of a listed company in India have been included.
• A new chapter on a contemporary topic ‘;behavioral finance (Chapter 20)’ has been added.
• New Indian and global examples and cases have been added to make the discussions contemporary.

Table of Contents

1. Introduction to Securities
2. Markets for Securities
3. Risk and Return
4. Portfolio Analysis
5. Index Models
6. Capital Market Theory
7. Analysis
8. Industry Analysis
9. Company Analysis: Measuring Earnings
10. Company Analysis: Forecasting Earnings
11. Company Analysis: Applied Valuation
12. Bond Analysis: Return and Systematic Risk
13. Bond Analysis: Unsystematic Risk
14. Bond Management Strategies
15. Options
16. Rights, Warrants, and Convertibles
17. Futures
18. Technical Analysis
19. Efficient-market Theory
20. Behavioral Finance
21. Managed Portfolios and Performance measurements