Test Bank for Essentials of Investments, 11th Edition, Zvi Bodie, Alex Kane, Alan Marcus, ISBN10: 1260013928, ISBN13: 9781260013924

Product details:

• ISBN-10 ‏ : ‎ 1260013928
• ISBN-13 ‏ : ‎ 978-1260013924
• Author: Zvi Bodie

The market leading undergraduate investments textbook, Essentials of Investments by Bodie, Kane, and Marcus, emphasizes asset allocation while presenting the practical applications of investment theory. The authors have eliminated unnecessary mathematical detail and concentrate on the intuition and insights that will be useful to practitioners throughout their careers as new ideas and challenges emerge from the financial marketplace. The Eleventh Edition includes increased attention to changes in market structure and trading technology, while continuing to be organized around one basic theme – that security markets are nearly efficient.

Table contents:

1. Part One: ELEMENTS OF INVESTMENTS
2. Chapter 1 Investments: Background and Issues
3. 1.1 Real Assets versus Financial Assets
4. 1.2 Financial Assets
5. 1.3 Financial Markets and the Economy
6. The Informational Role of Financial Markets
7. Consumption Timing
8. Allocation of Risk
9. Separation of Ownership and Management
10. Corporate Governance and Corporate Ethics
11. 1.4 The Investment Process
12. 1.5 Markets Are Competitive
13. The Risk-Return Trade-Off
14. Efficient Markets
15. 1.6 The Players
16. Financial Intermediaries
17. Investment Bankers
18. Venture Capital and Private Equity
19. 1.7 The Financial Crisis of 2008
20. Antecedents of the Crisis
21. Changes in Housing Finance
22. Mortgage Derivatives
23. Credit Default Swaps
24. The Rise of Systemic Risk
25. The Shoe Drops
26. The Dodd-Frank Reform Act
27. 1.8 Outline of the Text
28. End-of-Chapter Material
29. Chapter 2 Asset Classes and Financial Instruments
30. 2.1 The Money Market
31. Treasury Bills
32. Certificates of Deposit
33. Commercial Paper
34. Bankers’ Acceptances
35. Eurodollars
36. Repos and Reverses
37. Brokers’ Calls
38. Federal Funds
39. The LIBOR Market
40. Yields on Money Market Instruments
41. 2.2 The Bond Market
42. Treasury Notes and Bonds
43. Inflation-Protected Treasury Bonds
44. Federal Agency Debt
45. International Bonds
46. Municipal Bonds
47. Corporate Bonds
48. Mortgage and Asset-Backed Securities
49. 2.3 Equity Securities
50. Common Stock as Ownership Shares
51. Characteristics of Common Stock
52. Stock Market Listings
53. Preferred Stock
54. Depositary Receipts
55. 2.4 Stock and Bond Market Indexes
56. Stock Market Indexes
57. The Dow Jones Industrial Average
58. The Standard & Poor’s 500 Index
59. Other U.S. Market Value Indexes
60. Equally Weighted Indexes
61. Foreign and International Stock Market Indexes
62. Bond Market Indicators
63. 2.5 Derivative Markets
64. Options
65. Futures Contracts
66. End-of-Chapter Material
67. Chapter 3 Securities Markets
68. 3.1 How Firms Issue Securities
69. Privately Held Firms
70. Publicly Traded Companies
71. Shelf Registration
72. Initial Public Offerings
73. 3.2 How Securities are Traded
74. Types of Markets
75. Types of Orders
76. Trading Mechanisms
77. 3.3 The Rise of Electronic Trading
78. 3.4 U.S. Markets
79. NASDAQ
80. The New York Stock Exchange
81. ECNs
82. 3.5 New Trading Strategies
83. Algorithmic Trading
84. High-Frequency Trading
85. Dark Pools
86. Bond Trading
87. 3.6 Globalization of Stock Markets
88. 3.7 Trading Costs
89. 3.8 Buying on Margin
90. 3.9 Short Sales
91. 3.10 Regulation of Securities Markets
92. Self-Regulation
93. The Sarbanes-Oxley Act
94. Insider Trading
95. End-of-Chapter Material
96. Chapter 4 Mutual Funds and Other Investment Companies
97. 4.1 Investment Companies
98. 4.2 Types of Investment Companies
99. Unit Investment Trusts
100. Managed Investment Companies
101. Other Investment Organizations
102. 4.3 Mutual Funds
103. Investment Policies
104. How Funds Are Sold
105. 4.4 Costs of Investing in Mutual Funds
106. Fee Structure
107. Fees and Mutual Fund Returns
108. 4.5 Taxation of Mutual Fund Income
109. 4.6 Exchange-Traded Funds
110. 4.7 Mutual Fund Investment Performance: A First Look
111. 4.8 Information on Mutual Funds
112. End-of-Chapter Material
113. Part TWO: PORTFOLIO THEORY
114. Chapter 5 Risk, Return, and the Historical Record
115. 5.1 Rates of Return
116. Measuring Investment Returns over Multiple Periods
117. Conventions for Annualizing Rates of Return
118. 5.2 Inflation and the Real Rate of Interest
119. The Equilibrium Nominal Rate of Interest
120. 5.3 Risk and Risk Premiums
121. Scenario Analysis and Probability Distributions
122. The Normal Distribution
123. Normality and the Investment Horizon
124. Deviation from Normality and Tail Risk
125. Risk Premiums and Risk Aversion
126. The Sharpe Ratio
127. 5.4 The Historical Record
128. Using Time Series of Returns
129. Risk and Return: A First Look
130. 5.5 Asset Allocation across Risky and Risk-Free Portfolios
131. The Risk-Free Asset
132. Portfolio Expected Return and Risk
133. The Capital Allocation Line
134. Risk Aversion and Capital Allocation
135. 5.6 Passive Strategies and the Capital Market Line
136. Historical Evidence on the Capital Market Line
137. Costs and Benefits of Passive Investing
138. End-of-Chapter Material
139. Chapter 6 Efficient Diversification
140. 6.1 Diversification and Portfolio Risk
141. 6.2 Asset Allocation with Two Risky Assets
142. Covariance and Correlation
143. Using Historical Data
144. The Three Rules of Two-Risky-Asset Portfolios
145. The Risk-Return Trade-Off with Two-Risky-Assets Portfolios
146. The Mean-Variance Criterion
147. 6.3 The Optimal Risky Portfolio with a Risk-Free Asset
148. 6.4 Efficient Diversification with Many Risky Assets
149. The Efficient Frontier of Risky Assets
150. Choosing the Optimal Risky Portfolio
151. The Preferred Complete Portfolio and a Separation Property
152. Constructing the Optimal Risky Portfolio: An Illustration
153. 6.5 A Single-Index Stock Market
154. Statistical Interpretation of the Single-Index Model
155. Learning from the Index Model
156. Using Security Analysis with the Index Model
157. 6.6 Risk Pooling, Risk Sharing, and Time Diversification
158. Time Diversification
159. End-of-Chapter Material
160. Chapter 7 Capital Asset Pricing and Arbitrage Pricing Theory
161. 7.1 The Capital Asset Pricing Model
162. The Model: Assumptions and Implications
163. Why All Investors Would Hold the Market Portfolio
164. The Passive Strategy Is Efficient
165. The Risk Premium of the Market Portfolio
166. Expected Returns on Individual Securities
167. The Security Market Line
168. Applications of the CAPM
169. 7.2 The CAPM and Index Models
170. 7.3 How Well Does the CAPM Predict Risk Premiums?
171. 7.4 Multifactor Models and the CAPM
172. The Fama-French Three-Factor Model
173. Estimating a Three-Factor SML
174. Multifactor Models and the Validity of the CAPM
175. 7.5 Arbitrage Pricing Theory
176. Diversification in a Single-Index Security Market
177. Well-Diversified Portfolios
178. The Security Market Line of the APT
179. Individual Assets and the APT
180. Well-Diversified Portfolios in Practice
181. The APT and the CAPM
182. Multifactor Generalization of the APT
183. Smart Betas and Multifactor Models
184. End-of-Chapter Material
185. Chapter 8 The Efficient Market Hypothesis
186. 8.1 Random Walks and Efficient Markets
187. Competition as the Source of Efficiency
188. Versions of the Efficient Market Hypothesis
189. 8.2 Implications of the EMH
190. Technical Analysis
191. Fundamental Analysis
192. Active versus Passive Portfolio Management
193. The Role of Portfolio Management in an Efficient Market
194. Resource Allocation
195. 8.3 Are Markets Efficient?
196. The Issues
197. Weak-Form Tests: Patterns in Stock Returns
198. Predictors of Broad Market Returns
199. Semistrong Tests: Market Anomalies
200. Strong-Form Tests: Inside Information
201. Interpreting the Anomalies
202. 8.4 Mutual Fund and Analyst Performance
203. Stock Market Analysts
204. Mutual Fund Managers
205. So, Are Markets Efficient?
206. End-of-Chapter Material
207. Chapter 9 Behavioral Finance and Technical Analysis
208. 9.1 The Behavioral Critique
209. Information Processing
210. Behavioral Biases
211. Limits to Arbitrage
212. Limits to Arbitrage and the Law of One Price
213. Bubbles and Behavioral Economics
214. Evaluating the Behavioral Critique
215. 9.2 Technical Analysis and Behavioral Finance
216. Trends and Corrections
217. Sentiment Indicators
218. A Warning
219. End-of-Chapter Material
220. Part THREE: DEBT SECURITIES
221. Chapter 10 Bond Prices and Yields
222. 10.1 Bond Characteristics
223. Treasury Bonds and Notes
224. Corporate Bonds
225. Preferred Stock
226. Other Domestic Issuers
227. International Bonds
228. Innovation in the Bond Market
229. 10.2 Bond Pricing
230. Bond Pricing between Coupon Dates
231. Bond Pricing in Excel
232. 10.3 Bond Yields
233. Yield to Maturity
234. Yield to Call
235. Realized Compound Return versus Yield to Maturity
236. 10.4 Bond Prices over Time
237. Yield to Maturity versus Holding-Period Return
238. Zero-Coupon Bonds and Treasury STRIPS
239. After-Tax Returns
240. 10.5 Default Risk and Bond Pricing
241. Junk Bonds
242. Determinants of Bond Safety
243. Bond Indentures
244. Yield to Maturity and Default Risk
245. Credit Default Swaps
246. 10.6 The Yield Curve
247. The Expectations Theory
248. The Liquidity Preference Theory
249. A Synthesis
250. End-of-Chapter Material
251. Chapter 11 Managing Bond Portfolios
252. 11.1 Interest Rate Risk
253. Interest Rate Sensitivity
254. Duration
255. What Determines Duration?
256. 11.2 Passive Bond Management
257. Immunization
258. Cash Flow Matching and Dedication
259. 11.3 Convexity
260. Why Do Investors Like Convexity?
261. 11.4 Active Bond Management
262. Sources of Potential Profit
263. Horizon Analysis
264. An Example of a Fixed-Income Investment Strategy
265. End-of-Chapter Material
266. Part FOUR: SECURITY ANALYSIS
267. Chapter 12 Macroeconomic and Industry Analysis
268. 12.1 The Global Economy
269. 12.2 The Domestic Macroeconomy
270. Gross Domestic Product
271. Employment
272. Inflation
273. Interest Rates
274. Budget Deficit
275. Sentiment
276. 12.3 Interest Rates
277. 12.4 Demand and Supply Shocks
278. 12.5 Federal Government Policy
279. Fiscal Policy
280. Monetary Policy
281. Supply-Side Policies
282. 12.6 Business Cycles
283. The Business Cycle
284. Economic Indicators
285. Other Indicators
286. 12.7 Industry Analysis
287. Defining an Industry
288. Sensitivity to the Business Cycle
289. Sector Rotation
290. Industry Life Cycles
291. Industry Structure and Performance
292. End-of-Chapter Material
293. Chapter 13 Equity Valuation
294. 13.1 Valuation by Comparables
295. Limitations of Book Value
296. 13.2 Intrinsic Value versus Market Price
297. 13.3 Dividend Discount Models
298. The Constant-Growth DDM
299. Stock Prices and Investment Opportunities
300. Life Cycles and Multistage Growth Models
301. Multistage Growth Models
302. 13.4 Price–Earnings Ratios
303. The Price–Earnings Ratio and Growth Opportunities
304. P/E Ratios and Stock Risk
305. Pitfalls in P/E Analysis
306. Combining P/E Analysis and the DDM
307. Other Comparative Valuation Ratios
308. 13.5 Free Cash Flow Valuation Approaches
309. Comparing the Valuation Models
310. The Problem with DCF Models
311. 13.6 The Aggregate Stock Market
312. End-of-Chapter Material
313. Chapter 14 Financial Statement Analysis
314. 14.1 The Major Financial Statements
315. The Income Statement
316. The Balance Sheet
317. The Statement of Cash Flows
318. 14.2 Measuring Firm Performance
319. 14.3 Profitability Measures
320. Return on Assets
321. Return on Capital
322. Return on Equity
323. Financial Leverage and ROE
324. Economic Value Added
325. 14.4 Ratio Analysis
326. Decomposition of ROE
327. Turnover and Asset Utilization
328. Liquidity Ratios
329. Market Price Ratios
330. Choosing a Benchmark
331. 14.5 An Illustration of Financial Statement Analysis
332. 14.6 Comparability Problems
333. Inventory Valuation
334. Depreciation
335. Inflation and Interest Expense
336. Fair Value Accounting
337. Quality of Earnings and Accounting Practices
338. International Accounting Conventions
339. 14.7 Value Investing: The Graham Technique
340. End-of-Chapter Material
341. Part FIVE: DERIVATIVE MARKETS
342. Chapter 15 Options Markets
343. 15.1 The Option Contract
344. Options Trading
345. American and European Options
346. The Option Clearing Corporation
347. Other Listed Options
348. 15.2 Values of Options at Expiration
349. Call Options
350. Put Options
351. Options versus Stock Investments
352. 15.3 Option Strategies
353. 15.4 Optionlike Securities
354. Callable Bonds
355. Convertible Securities
356. Warrants
357. Collateralized Loans
358. Leveraged Equity and Risky Debt
359. 15.5 Exotic Options
360. Asian Options
361. Currency-Translated Options
362. Digital Options
363. End-of-Chapter Material
364. Chapter 16 Option Valuation
365. 16.1 Option Valuation: Introduction
366. Intrinsic and Time Values
367. Determinants of Option Values
368. 16.2 Binomial Option Pricing
369. Two-State Option Pricing
370. Generalizing the Two-State Approach
371. Making the Valuation Model Practical
372. 16.3 Black-Scholes Option Valuation
373. The Black-Scholes Formula
374. The Put-Call Parity Relationship
375. Put Option Valuation
376. 16.4 Using the Black-Scholes Formula
377. Hedge Ratios and the Black-Scholes Formula
378. Portfolio Insurance
379. Option Pricing and the Crisis of 2008–2009
380. 16.5 Empirical Evidence
381. End-of-Chapter Material
382. Chapter 17 Futures Markets and Risk Management
383. 17.1 The Futures Contract
384. The Basics of Futures Contracts
385. Existing Contracts
386. 17.2 Trading Mechanics
387. The Clearinghouse and Open Interest
388. Marking to Market and the Margin Account
389. Cash versus Actual Delivery
390. Regulations
391. Taxation
392. 17.3 Futures Market Strategies
393. Hedging and Speculation
394. Basis Risk and Hedging
395. 17.4 Futures Prices
396. Spot-Futures Parity
397. Spreads
398. 17.5 Financial Futures
399. Stock-Index Futures
400. Foreign Exchange Futures
401. Interest Rate Futures
402. 17.6 Swaps
403. Swaps and Balance Sheet Restructuring
404. The Swap Dealer
405. End-of-Chapter Material
406. Part SIX: ACTIVE INVESTMENT MANAGEMENT
407. Chapter 18 Evaluating Investment Performance
408. 18.1 The Conventional Theory of Performance Evaluation
409. Average Rates of Return
410. Time-Weighted Returns versus Dollar-Weighted Returns
411. Adjusting Returns for Risk
412. Risk-Adjusted Performance Measures
413. The Sharpe Ratio for Overall Portfolios
414. The Treynor Ratio
415. The Information Ratio
416. The Role of Alpha in Performance Measures
417. Implementing Performance Measurement: An Example
418. Selection Bias and Portfolio Evaluation
419. 18.2 Style Analysis
420. 18.3 Morningstar’s Risk-Adjusted Rating
421. 18.4 Performance Measurement with Changing Portfolio Composition
422. 18.5 Market Timing
423. The Potential Value of Market Timing
424. Valuing Market Timing as a Call Option
425. The Value of Imperfect Forecasting
426. 18.6 Performance Attribution Procedures
427. Asset Allocation Decisions
428. Sector and Security Selection Decisions
429. Summing Up Component Contributions
430. End-of-Chapter Material
431. Chapter 19 International Diversification
432. 19.1 Global Markets for Equities
433. Developed Countries
434. Emerging Markets
435. Market Capitalization and GDP
436. Home-Country Bias
437. 19.2 Exchange Rate Risk and International Diversification
438. Exchange Rate Risk
439. Imperfect Exchange Rate Risk Hedging
440. Investment Risk in International Markets
441. International Diversification
442. Are Benefits from International Diversification Preserved in Bear Markets?
443. 19.3 Political Risk
444. 19.4 International Investing and Performance Attribution
445. Constructing a Benchmark Portfolio of Foreign Assets
446. Performance Attribution
447. End-of-Chapter Material
448. Chapter 20 Hedge Funds
449. 20.1 Hedge Funds versus Mutual Funds
450. 20.2 Hedge Fund Strategies
451. Directional versus Nondirectional Strategies
452. Statistical Arbitrage
453. 20.3 Portable Alpha
454. An Example of a Pure Play
455. 20.4 Style Analysis for Hedge Funds
456. 20.5 Performance Measurement for Hedge Funds
457. Liquidity and Hedge Fund Performance
458. Hedge Fund Performance and Selection Bias
459. Hedge Fund Performance and Changing Factor Loadings
460. Tail Events and Hedge Fund Performance
461. 20.6 Fee Structure in Hedge Funds
462. End-of-Chapter Material
463. Chapter 21 Taxes, Inflation, and Investment Strategy
464. 21.1 Saving for the Long Run
465. A Hypothetical Household
466. The Retirement Annuity
467. 21.2 Accounting for Inflation
468. A Real Savings Plan
469. An Alternative Savings Plan
470. 21.3 Accounting for Taxes
471. 21.4 The Economics of Tax Shelters
472. A Benchmark Tax Shelter
473. The Effect of the Progressive Nature of the Tax Code
474. 21.5 A Menu of Tax Shelters
475. Defined Benefit Plans
476. Defined Contribution Plans
477. Individual Retirement Accounts
478. Roth Accounts with the Progressive Tax Code
479. Risky Investments and Capital Gains as Tax Shelters
480. Sheltered versus Unsheltered Savings
481. 21.6 Social Security
482. 21.7 Large Purchases
483. 21.8 Home Ownership: The Rent-versus-Buy Decision
484. 21.9 Uncertain Longevity and Other Contingencies
485. 21.10 Matrimony, Bequest, and Intergenerational Transfers
486. End-of-Chapter Material
487. Chapter 22 Investors and the Investment Process
488. 22.1 The Investment Management Process
489. 22.2 Investor Objectives
490. Individual Investors
491. Professional Investors
492. Life Insurance Companies
493. Non-Life-Insurance Companies
494. Banks
495. Endowment Funds
496. 22.3 Investor Constraints
497. Liquidity
498. Investment Horizon
499. Regulations
500. Tax Considerations
501. Unique Needs
502. 22.4 Investment Policies
503. Top-Down Policies for Institutional Investors
504. Active versus Passive Policies
505. 22.5 Monitoring and Revising Investment Portfolios
506. End-of-Chapter Material
507. Appendixes
508. A References
509. B References to CFA Questions
510. Index

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