Hill Robert Alan. Portfolio Theory & Financial Analyses: Exercises

Bookboon, 2010. — 73 p. — ISBN: 978-87-7681-616-2.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 theyPart An Introduction
An Overview
Part The Portfolio Decision
Risk and Portfolio Analysis
The Optimum Portfolio
The Market Portfolio
Part Models of Capital Asset Pricing
The Beta Factor
The Capital Asset Pricing Model (CAPM)
Capital Budgeting, Capital Structure and the CAPM.