Whether you are an executive or a student, beginner or expert, this book is designed to explain and illustrate the working essentials of finance with clarity and speed.
This desktop companion deliberately combines essential theory with real-world application, using short, focused chapters to help you find what you need and implement it right away. www.pearsoned.co.uk/estrada
Javier Estrada holds an M.S. in Finance and a Ph.D. in Economics both from the University of Illinois at Urbana-Champaign. He is currently an associate professor at the IESE Business School in Barcelona, Spain; the co-editor of the Emerging Markets Review; and a wealth management advisor at Sports Global Consulting. He has published extensively in international journals, written many cases for class discussion, and lectured throughout the world.
Publisher's acknowledgments Preface to the second edition Preface to the first edition PART I: RISK AND RETURN 1 Returns (I): Basic concepts 2 Returns (II): Mean returns 3 Risk (I): Total risk 4 Risk and return (I): Portfolios 5 Risk (II): Diversification 6 Risk (III): Systematic risk 7 Risk and return (II): The CAPM and the cost of capital 8 Risk and return (III): The three-factor model 9 Risk (IV): Downside risk 10 Risk and return (IV): Risk-adjusted returns 11 Risk and return (V): Portfolio optimization 12 Risk and return (VI): The long term PART II: VALUATION 13 Stocks (I): The dividend discount model 14 Stocks (II): The WACC model 15 Stocks (III): Other DCF models 16 Stocks (IV): Reverse valuation 17 Stocks (V): Relative valuation 18 Bonds (I): Prices and yields 19 Bonds (II): Default risk and market risk 20 Bonds (III): Duration and convexity PART III: OTHER IMPORTANT TOPICS 21 NPV and IRR 22 Real options 23 Corporate value creation 24 Options 25 Futures and forwards 26 Currencies PART IV: STATISTICAL BACKGROUND 27 Stats (I): Summary statistics 28 Stats (II): Normality 29 Stats (III): Non-normality 30 Stats (IV): Regression analysis Index