Importance Of Sector Selection In The Equity Market

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Chapter 5

Chapter 6

Chapter 7

CAPM implies two Predictions: 1) Market Portfolio is efficient. 2) Alpha Values are Zero. * Calculate Alpha by Subtracting Beta From Return

Chapter 12,13,14

Inverse Relationship Between Price and Yields

Yield to Call

3.4% 3.5%

Price of a 30 year coupon bond over time.

Yields and Prices to Maturity on Zero-Coupon
Bonds.

Spot Rates

Sensitivity of Bond Prices

Duration

Calculating Duration of Two Bonds

Example of Duration
Example of Duration and Convexity
Example of Duration and Convexity Chapter 21

Portfolio Statistic Calculations

Performance Attribution

Performance of the Managed Portfolio

Performance Attribution

Sector Selection Within The Equity Market

Great Investors:
Robert Kiyosaki - Know the business and manage risk through hedging. Make money work for you and not work for money. Learn from mistakes.

George Soros - Study global macro economic markets and bet on the unexpected capitalizing on pricing deviations from norm. Made money in bonds and currencies. get out in from of the herd.

Carl Icahn - Expert at wearing down the defences of businesses he feels are mis-managed and under- priced. He buys when everyone else is selling. He turns around businesses he buys.

Philip Fisher - He focused on research, did not over-diversify and did not follow the crowd. He liked a few outstanding

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