Personal Finance and Investments : A Behavioural Finance Perspective book cover
1st Edition

Personal Finance and Investments
A Behavioural Finance Perspective

ISBN 9780415428620
Published October 24, 2008 by Routledge
936 Pages 113 B/W Illustrations

USD $94.95

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Book Description

In this book, the author draws from finance, psychology, economics, and other disciplines in business and the social sciences, recognising that personal finance and investments are subjects of study in their own right rather than merely branches of another discipline.

Considerable attention is given to topics which are either ignored or given very little attention in other texts. These include:

  • the psychology of investment decision-making
  • stock market bubbles and crashes
  • property investment
  • the use of derivatives in investment management
  • regulation of investments business.

More traditional subject areas are also thoroughly covered, including:

  • investment analysis
  • portfolio management
  • capital market theory
  • market efficiency
  • international investing
  • bond markets
  • institutional investments
  • option pricing
  • macroeconomics
  • the interpretation of company accounts.

Packed with over one hundred exercises, examples and exhibits and a helpful glossary of key terms, this book helps readers grasp the relevant principles of money management. It avoids non-essential mathematics and provides a novel new approach to the study of personal finance and investments.

This book will be essential for students and researchers engaged with personal finance, investments, behavioural finance, financial derivatives and financial economics.

This book also comes with a supporting website that includes two updated chapters, a new article featuring a behavioural model of the dot com, further exercises, a full glossary and a regularly updated blog from the author.

Table of Contents





Chapter 1 – Introduction


Chapter 2 - The Psychology of Personal Investment Decisions, Basics of Money, Bond and Property Markets


Chapter 3 – Interest Rates and Money Market Investments


Chapter 4 - Investing in Bonds


Chapter 5 – Property Investment and Mortgages, Basics of Stock Markets


Chapter 6 - Stock Exchanges


Chapter 7 - Stock Indices


Chapter 8 - The Rationale and Conduct of Regulation, Institutional Investments


Chapter 9 - Mutual Funds (Unit Trusts, OEICs, Investment Trusts)


Chapter 10 - Life Assurance and Assurance-Related Investments


Chapter 11 - Pensions


Chapter 12 - The Importance and Significance of Institutional Investors, Capital Market Theory


Chapter 13 - Portfolio Diversification


Chapter 14 - Capital Market Theory: The Capital Asset Pricing Model


Chapter 15 - Capital Market Theory: Alternatives and Criticisms, Portfolio Management


Chapter 16 - Styles of Portfolio Construction


Chapter 17 - Evaluating the Performance of Fund Managers, Investment Analysis


Chapter 18 - The Economic Environment


Chapter 19 - Dividend Discount Models


Chapter 20 - Company Accounts and Economic Value Added


Chapter 21 – Ratio Analysis


Chapter 22 - Technical Analysis, Market Efficiency


Chapter 23 - Market Efficiency: Concepts and Weak Form Evidence


Chapter 24 - Noise Trading and Behavioural Finance


Chapter 25 - Market Anomalies


Chapter 26 - Further Evidence on Market Efficiency


Chapter 27 - Stock Market Bubbles and Crashes, Stock Index Futures


Chapter 28 - Stock Index Futures


Chapter 29 - Stock Index Futures Prices


Chapter 30 - Hedging with Stock Index Futures, Stock Options


Chapter 31 - Stock Options


Chapter 32 – Speculation with Stock Options


Chapter 33 - Hedging with Options


Chapter 34 – Structured Products


Chapter 35 – Warrants, Convertibles, and Split-Caps


Chapter 36 – Option Pricing and the Black-Scholes Model


Chapter 37 – Variations on the Basic Black-Scholes Option Pricing Model


Chapter 38 – The Binomial Option Pricing Model, International Investing: Using Currency Derivatives


Chapter 39 - Currency Forwards, Futures, Swaps and Options, Bond and Interest Rate Analysis


Chapter 40 - Bond Prices and Redemption Yields


Chapter 41 - Duration and Risk


Chapter 42 - Bond Price Convexity


Chapter 43 - Bond Futures


Chapter 44 -Yield Curves and Interest Rate Futures


Chapter 45 – Interest Rate Swaps

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Keith Redhead is Principal Lecturer in the Department of Economics, Finance and Accounting at Coventry University Business School. He is also the author of "Introducing Investments: A Personal Finance Approach" and "Financial Derivatives: An Introduction to Futures, Forwards, Options and Swaps".