Investment Analysis and Portfolio Management are a crisp, clear-cut guide to financial management. Combining sound theory with effective application, first Canadian edition, teaches students how to better manage their own money to gain the most benefit from what they make- now and in the future. With an easy-to-read style, this classic self-help book is “just right.” – Choice magazine
In Part One of Investment Analysis and Portfolio Management, students will explore investment analysis and portfolio management tools. The topics include understanding risk, investing for long-term growth, understanding inflation, risk management, and investment options. The first half of the book focuses on risk and how to evaluate investment options using the historical performance of specific securities. The second half examines important concepts such as savings and insurance, real estate, international investments, alternative investment markets, bonds, and stock market trading.
The final part of the book looks at investment analysis and portfolio management options. The core idea is that people need a broad range of investment options to take advantage of a wide range of returns. One major concept explored in this chapter is identifying risk. Students can explore areas such as value investing, growth, income, and other investment options. One important concept introduced in this section is value pricing–the ability to fairly compare investment options based on their inherent value.
Learning about risk and choosing investment strategies are important for investment managers. By learning how to analyze investment data using real world data, investors can better understand the risks and rewards associated with their investment decisions. Learning about inflation, growth, unemployment, and other economic indicators is also important. While past performance is important, current data can often be used to make better decisions. Relying on past performance is not always a good guide.
The last two chapters of the book examine different aspects of investment management. They begin by reviewing common investment management challenges, such as finding investment opportunities amidst market uncertainties. Next, students look at the theory and practice of asset allocation. Finally, they cover real world portfolio management and analysis.
Analysis and portfolio management is a valuable tool for investment managers. Its primary purpose is to ensure that a manager’s investment decisions are risk-adjusted. To achieve this goal, managers must assess expected returns from all investment scenarios. Once this is determined, they can build a portfolio that will accommodate possible declines in market prices. If they choose the right investment strategies, they can increase returns while minimizing potential losses. For more information about investment analysis and portfolio management, you should consider reading the book, Investing in the Real World, by Gary Null.