Portfolio Theory Financial Analyses-Exercises by Robert Alan Hillseeders: 24
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DescriptionPortfolio Theory Financial Analyses-Exercises by Robert Alan Hill  Descriptions This Exercise book and theory text evaluate Modern Portfolio Theory (Markowitz, CAPM and APT) for future study. From the original purpose of MPT through to asset investment by management, we learn why anybody today with the software and a reasonable financial education can model portfolios. However, one lesson from the 2007 meltdown is that computer driven models are so complex that hardly anybody understands what is going on. Returning to first principles, we learn why investors and not their computers should always interpret their results. Moreover, MPT is a guide to action and not a substitute. Investors should understand the models that underpin the computer programmes they Contents Part I: An Introduction 1. An Overview Introduction Exercise 1.1: The Mean-Variance Paradox Exercise 1.2: The Concept of Investor Utility Summary and Conclusions Selected References (From PTFA) Part II: The Portfolio Decision 2. Risk and Portfolio Analysis Introduction Exercise 2.1: A Guide to Further Study Exercise 2.2: The Correlation Coefficient and Risk Exercise 2.3: Correlation and Risk Reduction Summary and Conclusions Selected References 3. The Optimum Portfolio Introduction Exercise 3.1: Two-Asset Portfolio Risk Minimisation Exercise 3.2: Two-Asset Portfolio Minimum Variance (I) Exercise 3.3: Two-Asset Portfolio Minimum Variance (II) Exercise 3.4: The Multi-Asset Portfolio Summary and Conclusions Selected References 4. The Market Portfolio Introduction Exercise 4.1: Tobin and Perfect Capital Markets Exercise 4.2: The Market Portfolio and Tobin’s Theorem Summary and Conclusions Selected References Part III: Models of Capital Asset Pricing 5. The Beta Factor Introduction Exercise 5.1: The Derivation of Beta Factors Exercise 5.2: The Security Beta Factor Exercise 5.3: The Portfolio Beta Factor Summary and Conclusions Selected References 6. The Capital Asset Pricing Model (CAPM) Introduction Exercise 6.1: Market Volatility and Portfolio Management Exercise 6.2: The CAPM and Company Valuation Summary and Conclusions Selected References 7. Capital Budgeting, Capital Structure and the CAPM Introduction Exercise 7.1: The CAPM Discount Rate Exercise 7.2: MM, Geared Betas and the CAPM Exercise 7.3: The CAPM: A Review Conclusions Summary and Conclusions Selected References About The Author With an eclectic record of University teaching, research, publication, consultancy and curricula development, underpinned by running a successful business, Alan has been a member of national academic validation bodies and held senior external examinerships and lectureships at both undergraduate and postgraduate level in the UK and abroad. With increasing demand for global e-learning, his attention is now focussed on the free provision of a financial textbook series, underpinned by a critique of contemporary capital market theory in volatile markets Sharing Widget |