Book: Financial Markets and Institutions, 11th Edition Author: Jeff Madura Publisher: Cengage Learning, 2015 ISBN: 978-1-133-94788-2
Chapter 7 shifts from money markets (short-term) to bond markets (long-term). Bonds are how governments and corporations borrow money for years or even decades. This chapter covers the different types of bonds, how they work, and how the bond market has gone global.
If you are a retail trader, you tap “buy” on your phone and your order fills in milliseconds. Easy. But if you manage a pension fund and need to buy 500,000 shares of something? That is an entirely different problem. Chapter 18 is about the people who solve it.
This is post 22 of 23 in a series on “Systems Thinking: Managing Chaos and Complexity” by Jamshid Gharajedaghi (ISBN 978-0-7506-7973-2).
This is a retelling of Chapter 6 Part 1 (sections 6.1 through 6.6) from “Behavioral Finance for Private Banking” by Thorsten Hens, Enrico G. De Giorgi, and Kremena K. Bachmann (Wiley, 2018).
Book: Real Estate by the Numbers | Authors: J Scott and Dave Meyer | Chapter: 9
← Expected Value and Time Value of Money | Net Present Value and Internal Rate of Return →
Chapter 7 of Behavioral Finance and Investor Types by Michael M. Pompian is where theory finally meets practice. After six chapters of background, frameworks, and definitions, you actually get to take the quizzes and figure out what type of investor you are. Two quizzes, to be specific.
Chapter 4 of Investing Psychology is where Tim Richards talks about something we all deal with but rarely notice: other people messing with our financial decisions. Not on purpose. Just by existing around us.
This is the second half of Chapter 4, and it is where options come alive. The first half covered basis trading and swap spreads. Now we get into the forward-swap relationship, and then spend serious time on how traders use options to express views on both direction and volatility.
The second half of Chapter 5 in Artificial Intelligence in Finance covers three theories that shaped how Wall Street thinks about investing. Mean-Variance Portfolio theory, the Capital Asset Pricing Model, and Arbitrage Pricing Theory. These ideas have been in every finance course since the 1960s. Hilpisch walks through them with actual Python code instead of just abstract math.
Every investment has risks. Anyone who tells you otherwise is trying to sell you something. REITs are no different. They can be fantastic investments, but you need to go in with your eyes open.