Portfolio Theory and Capital Markets
Portfolio Theory and Capital Markets laid the groundwork for such investment standards as modern portfolio theory, derivatives pricing and investment, and equity index funds, among others. With its discussions of how financial markets should act, this book’s value to today's investor is perhaps greater than at any time in the past. Portfolio Theory and Capital Markets places its lessons in a meaningful context for modern investors throughout the world and provides timeless insights that are well worth reading today.
Dr. William Sharpe reintroduces this essential book, places its lessons in a meaningful context for modern investors, and provides timeless insights that are well worth revisiting today.
A new foreword helps place Dr. Sharpe’s synthesis of portfolio and capital markets theories into today’s financial environment, while his rules for the intelligent selection of investments and conditions of risk remain as fresh today as in 1970.
Table of Contents
Part I: Portfolio Theory
Certainty
Portfolios Securities
Efficient Portfolios
Part II: Capital Market Theory
Agreement
Disagreement
Part III: Applications and Extensions
Index Models
The Record
Utility
State-Preference Theory
Appendix A: Essential Ingredients
Appendix B: Solving a Basic Problem
Appendix C: Solving a Standard Problem
Appendix D. Security Prices