New – Excel Spreadsheet Applications. A sample spreadsheet is presented in the text with an interactive version and related questions available on the book website. Many new illustrations of Excel for analysis
New – PowerPoint presentation software following the order of the chapters
New – Online Learning Centre. The student center will contain quick quiz material, e-investment exercises, weblinks, PowerPoint Powernotes, glossary, and Excel applications.
Chapter 1 – Has been completely rewritten and focuses on the recent market turbulence and lessons for proper valuation techniques
Chapter 2 – Revised treatment of indexes focusing on market-value weighted indexes and the new Standard and Poor index for Toronto
Chapter 4 – Renamed "Mutual Funds and the Institutional Environment" and reorganized to focus on mutual funds and exchange-traded funds (ETFs)
Chapter 9 – New content on Behavioral Finance. The coverage of "behavioral finance" adds another element into the discussion of whether or not markets are truly efficient. This discussion takes into account the actions of individuals (investors) and possible "investor irrationalities" (taken from research into the psychology of decision making).
Chapter 12 – "Dirty price" method of bootstrapping included.
Chapter 13 – Renamed "Managing Bond Portfolios" (was Fixed-Income Portfolio Management).
Chapter 14 – New material on alternative valuation measures, including PEG, P/CF and P/Sales, and their links to earnings growth.
Chapter 15 – Incorporation of new material on Economic Value Added and Quality of Earnings.
Chapter 16 – New content on technical/econometric analysis.
Chapter 18 – New subsection entitled 'Hedging Bets on Mispriced Options'. Also new Excel application entitled, Black-Scholes Option Valuation.
Chapter 20 – New content on Morningstar ratings and Style analysis as well as two articles presenting the conflicting views of active vs passive management.
Chapter Overview – Each chapter begins with a summary of the material covered in the chapter.
Boxed Readings – Contain short articles from business periodicals that enliven, reinforce and apply the material in the chapter to real-world situations.
Concept Checks – These self-test questions and problems are included in the body of the text. Concept Checks enable the student to determine whether he or she has understood the preceding material.
Websites – throughout text are identified in the margin with an icon. Sites have been chosen for relevance to the chapter.
End of Chapter Problems – The problems that follow the Summary progress from simple to challenging and many are taken from CFA examinations and from the Canadian Securities Course of the Canadian Securities Institute (CSI). These questions are identified through the use of icons.
Detailed solutions are provided at the end of the text.
2003 McGraw-Hill Higher Education