Understanding Investments: Charles P. Jones, Investments: Analysis and Management
Understanding Investments: Charles P. Jones, Investments: Analysis and Management
Understanding Investments: Charles P. Jones, Investments: Analysis and Management
Investments
Chapter 1
Charles P. Jones, Investments: Analysis and Management,
1-1
Objectives
To understand the investments field as currently
practiced
To help you make investment decisions that will
enhance your economic welfare
To create realistic expectations about the outcome of
investment decisions
1-2
Investments Defined
Investments is the study of the process of committing
funds to one or more assets
Concerned with management of investors wealth
Emphasis on holding financial assets (paper or electronic
claim on some issuers) and marketable securities
Concepts also apply to real assets
Foreign financial assets should not be ignored
1-3
What Is An Investment?
1-4
1-5
Investment Decisions
Underlying investment decisions: the tradeoff between
expected return and risk
Expected return is not usually the same as realized return
1-6
Financial Futures
Corporate Bonds
ER
Risk
1-7
Portfolio management
1-8
1-9
1-10
1-11
1-12
1-13