Financial Times Guide to Understanding Finance

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