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Investment Management: Portfolio Diversification, Risk, and Timing--Fact and Fiction

Investment Management: Portfolio Diversification, Risk, and Timing--Fact and Fiction

Robert L. Hagin

ISBN: 978-0-471-48381-6

Feb 2004

336 pages


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A new look at the important issue of investment management in the 21st century
Written for professional and private investors-as well as fiduciaries who rely on investment professionals-this book presents the content of an advanced investment-management course in an easy-to-read, question-and-answer format.
Robert L. Hagin (Haverford, PA) is a 30-year investment management veteran who recently retired as Executive Director for Morgan Stanley Investment Management.
PART ONE: Getting Started—Your Tool Kit.

CHAPTER 1: Introduction.

CHAPTER 2: What You Need to Know.

CHAPTER 3: Information or Noise?

CHAPTER 4: Intuition.

CHAPTER 5: Random Occurrences.

CHAPTER 6: Law of Small Numbers.

CHAPTER 7: Average Is Average.

CHAPTER 8: Efficient Markets.

CHAPTER 9: Random Walk.

PART TWO: Avoiding Torpedoes.

CHAPTER 10: Perfect Earnings Forecasts.

CHAPTER 11: Can Analysts Forecast Earnings Changes?

CHAPTER 12: Earnings Forecasts (and Torpedo Stocks).

CHAPTER 13: Using Earnings Forecasts.

CHAPTER 14: Size Effect.

CHAPTER 15: Price-Earnings Effect.

CHAPTER 16: The Magic of Growth.

CHAPTER 17: Estimate Revisions.

PART THREE: Landmark Insights.

CHAPTER 18: Nobel Laureate Markowitz.

CHAPTER 19: Nobel Laureate Sharpe.

CHAPTER 20: Compensation for Bearing Risks.

CHAPTER 21: Daring to Be Different.

CHAPTER 22: Law of Active Management.

CHAPTER 23: Nobel Laureate Nash and Keynes.

CHAPTER 24: Nobel Laureates Kahneman and Smith.

CHAPTER 25: What Guides Investors.

PART FOUR: Dissecting Returns.

CHAPTER 26: Luck or Skill?

CHAPTER 27: Measuring Investment Returns.

CHAPTER 28: Anatomy of the S&P 500.

CHAPTER 29: Returns Earned by Investors.

CHAPTER 30: Market Timing versus Asset Allocation.

CHAPTER 31: Market Timing: Risk versus Reward.

CHAPTER 32: Know the Odds Before You Play the Game.

CHAPTER 33: Ten Best Days.

PART FIVE: Putting the Pieces Together.

CHAPTER 34: Trading Costs.

CHAPTER 35: Mutual Funds.

CHAPTER 36: Advantages of . . . .

CHAPTER 37: Style Persistence.

CHAPTER 38: Asset Allocation.

CHAPTER 39: Beware of Taxes.

CHAPTER 40: Beyond Active versus Passive.

CHAPTER 41: Long-Term Capital Management.

CHAPTER 42: To Win the Game.

CHAPTER 43: Highlights.