Nelson Higher Education

Higher Education

Investment Analysis and Portfolio Management, 1st Edition

  • Frank K. Reilly
  • Keith C. Brown
  • Peggy L. Hedges
  • Philip C. Chang
  • ISBN-10: 0176500693
  • ISBN-13: 9780176500696
  • 0 Pages | Paperback
  • COPYRIGHT: 2010 Published
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About the Product

Combining solid theory with practical application, INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT, First Canadian Edition, helps students learn how to manage their money to derive the maximum benefit from what they earn--now and in the future. It combines investment instruments and capital markets with theoretical detail on evaluating investments and opportunities to satisfy risk-return objectives. It also emphasizes how investment practice and theory are influenced by globalization. Thorough yet succinct, the first Canadian edition includes new coverage of such hot topics as behavioral finance, hedge funds, codes of ethics, and more. It is packed with real-world illustrations and hands-on applications. Intended to be rigorous and empirical--yet not overly quantitative--INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT, First Canadian Edition, is the most comprehensive investments textbook available.


  • Concise: The first Canadian edition delivers comprehensive yet succinct coverage, providing just the right amount of detail to ensure solid student understanding and enabling you to cover more ground in the span of the course. The Canadian edition has combined chapters or removed content that is covered in other business courses

  • Canadian examples, data, and references are used throughout the text; Shopper Drug Mart data is used to illustrate concepts and step-by-step examples guide students through the analysis (see Chapters 9, 13, and Web 19)

  • Global perspective: INVESTMENT ANALYSIS AND PORTFOLIO MANAGEMENT, continues to lead the market with its solid coverage of international issues--the most comprehensive on the market.

  • Numbered learning objectives tied to end of chapter summary

  • List of key terms, with page reference, at end of each chapter

  • CFA exam prep: Challenging questions and exercises ensure your students are well prepared for the CFA exam. They appear in an appendix at back of the book, organized by chapter

  • Two Web Appendices (1A and 3A) and two web Chapters 19 and 20 are available for more advanced topics

  • Three boxed features in Chapter 5, 8, and 17 written by Francis Tapon at University of Guelph provide a ‘real-world’ glimpse into today’s economy

  • NETA Testbank. The Nelson Education Teaching Advantage (NETA) program delivers research-based resources that promote student engagement and higher-order thinking and enable the success of Canadian students and educators. This book’s testbank is designed to ensure top quality multiple-choice testing by avoiding common errors in question and test construction. If you want your students to achieve "beyond remembering", ask your Nelson Sales Representative how today!

About the Author

Frank K. Reilly

Frank K. Reilly, a Chartered Financial Analyst (CFA), is the Bernard J. Hank Professor of Finance, Mendoza College of Business, University of Notre Dame, where he served as dean from 1981-1987. Prior to 1981, Dr. Reilly was a professor at the University of Illinois at Urbana-Champaign, the University of Wyoming, and the University of Kansas. Recently, he was part of the inaugural group selected as a fellow of the Financial Management Association International. At the 2001 AIMR annual meeting in Los Angeles, he received the Daniel J. Forrestal III Leadership Award for Professional Ethics and Standards of Investment Practice. Among his other honors, Professor Reilly was included in the list of Outstanding Educators in America, received the Alumni Excellence in Graduate Teaching Award and the Outstanding Educator Award from the M.B.A. class at the University of Illinois, the Outstanding Teachers Award from the M.B.A. class at the University of Notre Dame, and the Faculty Award from the University of Notre Dame. He received his B.B.A. at the University of Notre Dame, his M.B.A. at Northwestern University, and his Ph.D. at the University of Chicago.

Keith C. Brown

Keith C. Brown, a Chartered Financial Analyst (CFA), is the Jack S. Josey Professor, University Distinguished Teaching Professor, and Fayez Sarofim Fellow at the McCombs School of Business at the University of Texas at Austin, where he teaches Investments, Portfolio Management and Security Analysis, Capital Markets, and Derivatives courses at the BBA and MBA levels. He is president and CEO of The MBA Investment Fund, LLC, a private capital appreciation fund managed by UT graduate students, and the former director of the department's Hicks, Muse, Tate & Furst Center for Private Equity Finance. Professor Brown is cofounder and senior partner of Fulcrum Financial Group, a portfolio management and investment advisory firm located in Austin, Texas, and Las Vegas, Nevada. He serves as an advisor to the boards of the Teacher Retirement System of Texas and the University of Texas Investment Management Company. He is an associate editor for the JOURNAL OF INVESTMENT MANAGEMENT and the JOURNAL OF BEHAVIORAL FINANCE. He received his B.A. from San Diego State University and his M.S. and Ph.D. from Purdue University.

Peggy L. Hedges

Peggy L. Hedges is a Senior Instructor at the Haskayne School of Business at the University of Calgary. Her background includes education and experience in financial services. Before joining the Haskayne School of Business in 1990, Peggy worked for the Canadian Imperial Bank of Commerce (CIBC) as both an administration and commercial lending manager. Peggy received a B.Sc. and M.B.A. from the University of Calgary. She has a Ph.D. in Environmental Planning from the University of Strathclyde and is a Fellow of the Institute of Canadian Bankers (FICB) and a Fellow of the Canadian Securities Institute (FCSI). Peggy has published articles on topics ranging from small business financing, alternative funding for defined benefit pension plans and risk analysis of catastrophic bonds. She has co-authored another textbook with William Lasher and Terry Fegarty entitled Practical Financial Management. This text-book is in its second Canadian Edition. Peggy has developed and taught undergraduate and graduate courses in corporate, personal, investment, institutional and public finance courses for the University of Calgary, University of Northern British Columbia, Athabasca University and Mount Royal College. She has received the Dean’s Award for Teaching Excellence and has been nominated several times for teaching awards. As well, she is a co-owner of a company that specializes in financial education to executives.

Philip C. Chang

Philip C. Chang is an Associate Professor of Finance at the Haskayne School of Business at the University of Calgary. He has formerly served as Chair of Finance and Operations Management and Associate Dean (International) at Haskayne. Philip received his PhD in Economics from University of Illinois at Urbana-Champaign and his MA and BA in Economics from National Taiwan University. He has taught in the fields of economics, statistics, investments, and corporate finance at the business schools of University of Illinois, University of Calgary, National Chengchi University in Taipei, and Peking University in Beijing. He has received many teaching excellence awards over the years. Philip’s publications range from mergers, risk management, cost of capital, bank fund reallocation to the linkage between finance and corporate social responsibility.

Table of Contents

Part One: The Investment Background
Chapter 1: The Investment Setting
Web Appendix 1A: A Review Of Statistics And The Security Market Line
Chapter 2: The Asset Allocation Decision
Appendix: Objectives and Constraints of Institutional Investors
Chapter 3: Selecting Investments in a Global Market
Web Appendix 3A: A Review of Bond Categories and Terminology
Chapter 4: Securities Markets and the Economy

Part Two: Developments in Investment Theory
Chapter 5. Efficient Capital Markets
Chapter 6. An Introduction to Portfolio Management
A. Proof That Minimum Portfolio Variance Occurs with Equal Weights When Securities Have Equal Variance
B. Derivation of Weights That Will Give Zero Variance When Correlation Equals -1.00
C. Indifference Curves and Investor Utility
Chapter 7: Asset Pricing Models: CAPM and APT

Part Three: Analysis and Management of Common Shares
Chapter 8: Economic and Industry Analysis (Philip)
Chapter 9: Company Analysis and Stock Valuation
Chapter 10: Technical Analysis

Part Four: Analysis and Management of Bonds
Chapter 11: Bond Fundamentals
Chapter 12: The Analysis and Valuation of Bonds

Part Five: Derivative Security Analysis
Chapter 13: An Introduction to Derivative Securities
Chapter 14: Derivatives: Analysis and Valuation

Part Six: Portfolio Management
Chapter 15: Equity Portfolio Management Strategies
Appendix: Canadian Mutual Fund Project
Chapter 16: Bond Portfolio Management Strategies
Appendix: Bond Immunization and Portfolio Rebalancing
Chapter 17: Professional Money Management, Alternative Assets, and Industry Ethics
Chapter 18: Evaluation of Portfolio Performance

WEB Part Six: Valuation Principles and Practices
Chapter 19: Analysis of Financial Statements
Chapter 20: An Introduction to Security Valuation

A-CFA Questions and Problems
B-How to Become a CFA Chartholder
C-Code of Ethics and Standards of Professional Conduct
D-Interest Tables
E-Standard Normal Probabilities
Comprehensive References List


All supplements have been updated in coordination with the Main title.
Please see Main title page for new to this edition information.

Instructor Supplements

Instructor's Resource CD for Investment Analysis and Portfolio Management  (ISBN-10: 0176478361 | ISBN-13: 9780176478360)