CONTENTS
Dedications............................................................................................................................ iii
About the Authors.................................................................................................................. v
Preface................................................................................................................................. ix
Tools of Investment Planning
Chapter 1 Cash and Cash Equivalents................................................................................ 1
Chapter 2 United States Government Securities.................................................................. 7
Chapter 3 Corporate Bonds.............................................................................................. 13
Chapter 4 Convertible Securities....................................................................................... 23
Chapter 5 Municipal Bonds.............................................................................................. 29
Chapter 6 Stripped Bonds................................................................................................ 35
Chapter 7 Zero-Coupon Bonds......................................................................................... 37
Chapter 8 Promissory Notes............................................................................................ 39
Chapter 9 Guaranteed Investment Contracts (GICs).......................................................... 45
Chapter 10 Common Stocks............................................................................................... 47
Chapter 11 Preferred Stock............................................................................................... 55
Chapter 12 Warrants and Rights........................................................................................ 61
Chapter 13 Stock Options.................................................................................................. 69
Chapter 14 Financial Futures.............................................................................................. 75
Chapter 15 Commodity Futures.......................................................................................... 89
Chapter 16 Mutual Funds................................................................................................... 95
Chapter 17 Exchange-Traded Funds (ETFs)..................................................................... 111
Chapter 18 Life Insurance............................................................................................... 123
Chapter 19 Annuities....................................................................................................... 143
Chapter 20 Real Estate.................................................................................................... 171
Chapter 21 REITs (Real Estate Investment Trusts)........................................................... 183
Chapter 22 Real Estate Mortgage Investment Conduits (REMICs)..................................... 195
Chapter 23 Asset-Backed Securities................................................................................. 209
Chapter 24 Oil and Gas.................................................................................................... 221
Chapter 25 Gold and Other Precious Metals...................................................................... 229
Chapter 26 Collectibles.................................................................................................... 235
Chapter 27 Limited Partnerships....................................................................................... 239
Chapter 28 Private Placements and Venture Capital.......................................................... 245
Chapter 29 American Depositary Receipts........................................................................ 251
Techniques of Investment Planning
Chapter 30 Investment Risk............................................................................................. 255
Chapter 31 Measuring Investment Risk............................................................................. 265
Chapter 32 Time Value Concepts..................................................................................... 277
Chapter 33 Measuring Investment Returns........................................................................ 293
Chapter 34 Measuring Yield............................................................................................. 323
Chapter 35 Security Valuation.......................................................................................... 335
Chapter 36 Asset Pricing Models..................................................................................... 343
Chapter 37 Portfolio Management and Measurement......................................................... 355
Chapter 38 Asset Allocation and Portfolio Construction..................................................... 365
Chapter 39 Investment Strategies..................................................................................... 375
Chapter 40 Formula Investing........................................................................................... 385
Chapter 41 Hedging and Option Strategies........................................................................ 391
Chapter 42 Leveraging Investment Assets........................................................................ 417
Chapter 43 Taxation of Investment Vehicles..................................................................... 427
Chapter 44 Tax-Efficient Investment Strategies................................................................. 463
Chapter 45 Investment Strategies for Tax-Advantaged Accounts....................................... 467
Appendices
Appendix A Present Value of Lump Sum........................................................................... 483
Appendix B Present Value of Annuity Due........................................................................ 487
Appendix C Present Value of Ordinary Annuity................................................................. 491
Appendix D Future Value of Lump Sum............................................................................. 495
Appendix E Future Value of Annuity Due.......................................................................... 501
Appendix F Future Value of Ordinary Annuity................................................................... 507
Appendix G Tax Exempt Equivalents................................................................................. 513
Appendix H Investment Characteristics Matrix and Investment Priority Valuator.................. 517
Appendix I Income Tax Table.......................................................................................... 527
Appendix J Million Dollar Goal Guide................................................................................ 529
Appendix K Additional Time Value Concepts..................................................................... 531
Glossary............................................................................................................................ 549
INDEX.............................................................................................................................. 555