The authors provide a concise summary of modern portfolio theory covering such issues as:
∗ The mean–variance approach to portfolio management.
∗ The capital asset pricing model.
∗ The efficient market hypothesis and option pricing theories.
∗ Risk measurement services.
Combining theory and practice, this is an ideal introductory text for undergraduate and postgraduate students, as well as a useful reference for investment managers.
1. The Revolution in Portfolio Theory: a Summary.
2. The Mean–variance Approach to Portfolio Management.
3. The Capital–asset Pricing Model.
4. The Efficient Market Hypothesis: The Early Evidence.
5. Implications of the Efficient Market Hypothesis.
6. The Efficient Market Hypothesis Revisited: Some Recent Developments.
7. Risk Measurement Services.
8. Option Pricing Theory.
Appendix: Study Questions.