PRELUDE

Purpose

Disclaimer 1

Disclaimer 2

 

CHAPTER 1

WHY INVESTING?

1.1 Cost opportunity

1.2 Inflation

1.3 Conclusions

​

CHAPTER 2

WHAT IS A FINANCIAL MARKET?

2.1 Stock market Vs. Real estate market

​

CHAPTER 3

FINANCIAL INSTRUMENTS

3.1 Introduction

3.2 Stocks

3.3 Bonds

3.4 Mortgage-Backed-Securities

3.5 Commodities

3.6 Currencies

3.7 Investment funds

3.7.1 Hedge funds Vs. Mutual funds

3.8 ETFs

3.9 Venture capitalists

3.10 Derivatives

3.10.1 Forward

3.10.2 Future

3.10.3 Option

3.10.4 Warrant

3.10.5 Swap

3.10.6 CDS

3.10.7 Weather derivatives

3.10.8 Cat bonds

​

CHAPTER 4

HOW TO CHOOSE A PROFESSIONAL

4.1 Introduction

4.2 Investment advisor

4.3 Investment fund

4.3.1 Trust

4.3.2 Pay incentive structure

4.3.3 Curriculum

4.3.4 Past performance

4.4 ETF vs Investment fund

​

CHAPTER 5

DIFFERENT TYPES OF ANALYSES

5.1 Introduction

5.2 Technical analysis

5.3 Fundamental analysis

5.4 Conclusions

​

CHAPTER 6

DIFFERENT TYPES OF STRATEGIES

6.1 Introduction

6.2 Directional strategies

6.2.1 Long/short equity

6.2.2 Dedicated short or Short selling

6.2.3 Global macro

6.2.4 Emerging markets

6.2.5 Managed futures

6.3 Non-directional strategies

6.3.1 Equity market neutral

6.3.2 Fixed income arbitrage

6.3.3 Convertible arbitrage

6.3.4 Event driven

6.3.5 Distressed securities

6.4 Other strategies

6.4.1 Weather derivatives and Cat bonds

6.4.2 Cross-listing arbitrage and Dual-listing arbitrage

​

CHAPTER 7

PERFORMANCE MEASUREMENT

7.1 Introduction

7.2 Sharpe ratio

7.3 M2

7.4 Treynor ratio

7.5 Sortino ratio

7.6 Information ratio

7.7 Sterling ratio

7.8 Burke ratio

7.9 Return on Var

7.10 Jensen’s Alpha

​

CHAPTER 8

THE BEST STRATEGIES - empirical research

8.1 Introduction

8.2 Empirical data

8.3 Strategies analysis

8.4 Benchmarks comparison

8.5 Hypotheses testing

8.6 Conclusions

​

Bibliography and sitography

of the second part of this book

​

THE AUTHOR