{"product_id":"the-conceptual-foundations-of-investing-isbn-9781119516293","title":"The Conceptual Foundations of Investing","description":"\u003cp\u003e\u003cb\u003eThe need-to-know essentials of investing\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThis book explains the conceptual foundations of investing to improve investor performance. There are a host of investment mistakes that can be avoided by such an understanding. One example involves the trade-off between risk and return. The trade-off seems to imply that if you bear more risk you will have higher long-run average returns. That conclusion is false. It is possible to bear a great deal of risk and get no benefit in terms of higher average return.\u003c\/p\u003e \u003cp\u003eUnderstanding the conceptual foundations of finance makes it clear why this is so and, thereby, helps an investor avoid bearing uncompensated risks. Another choice every investor has to make is between active versus passive investing. Making that choice wisely requires understanding the conceptual foundations of investing.\u003c\/p\u003e \u003cp\u003e•    Instructs investors willing to take the time to learn all of the concepts in layman’s terms\u003c\/p\u003e \u003cp\u003e•    Teaches concepts without overwhelming readers with math\u003c\/p\u003e \u003cp\u003e•    Helps you strengthen your portfolio\u003c\/p\u003e \u003cp\u003e•    Shows you the fundamental concepts of active investing\u003c\/p\u003e \u003cp\u003e\u003ci\u003eThe Conceptual Foundations of Investing\u003c\/i\u003e is ultimately for investors looking to understand the science behind successful investing.\u003c\/p\u003e \u003cp\u003ePreface vii\u003c\/p\u003e \u003cp\u003e1 Returns 1\u003c\/p\u003e \u003cp\u003e2 The Economic Structure of Investment Markets 23\u003c\/p\u003e \u003cp\u003e3 Bonds and Inflation 53\u003c\/p\u003e \u003cp\u003e4 RiskandReturn 97\u003c\/p\u003e \u003cp\u003e5 Fundamental Analysis and Valuation 121\u003c\/p\u003e \u003cp\u003e6 Transaction Costs, Fees, and Taxes 159\u003c\/p\u003e \u003cp\u003e7 Can History Be Trusted? 175\u003c\/p\u003e \u003cp\u003e8 Can Behavioral Anomalies Be Exploited? 193\u003c\/p\u003e \u003cp\u003e9 Alternative Investments 209\u003c\/p\u003e \u003cp\u003e10 Investment Suggestions and Postscript 227\u003c\/p\u003e \u003cp\u003eIndex 237\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eBRADFORD CORNELL\u003c\/b\u003e is a Visiting Professor of Financial Economics at Caltech and a Senior Consultant and Advisory Committee member at Compass Lexecon. He is also the founder and President of SMBP, a private hedge fund. \u003c\/p\u003e\u003cp\u003e\u003cb\u003eSHAUN CORNELL\u003c\/b\u003e is a Vice President and portfolio manager at SMBP. He focuses on the application of fundamental valuation to develop derivative strategies. \u003c\/p\u003e\u003cp\u003e\u003cb\u003eANDREW CORNELL\u003c\/b\u003e is Vice President and investment analyst at SMBP. He focuses on the application of technology to investment valuation.   \u003c\/p\u003e\u003cp\u003eT\u003ci\u003ehe Conceptual Foundations of Investing\u003c\/i\u003e is designed as an accessible guide for improving investor performance that offers a clear understanding of the conceptual foundations of modern investment theory with a minimum of technical detail. The authors—three experts on the topic—help investors ask the right questions to guide them in their investment decisions. The book is not a blueprint for beating the market but a commonsense approach for understanding the conceptual basics of investing. \u003c\/p\u003e\u003cp\u003eThe book begins with a critical exploration of how to analyze investing properly by calculating and working the return on investment. Filled with exhibits, illustrative examples, and concise explanations, \u003ci\u003eThe Conceptual Foundations of Investing\u003c\/i\u003e goes on to explore topics such as inflation, analysis and valuation, transaction costs, alternative investments, and much more. \u003c\/p\u003e\u003cp\u003eWhile the authors avoid the complex mathematics involved that characterizes much of modern finance, the text does contain useful investment data in spreadsheets and some equations and mathematical concepts. For the non-mathematically inclined, the authors provide valuable explanations. \u003c\/p\u003e\u003cp\u003eWith a basic understanding of the foundations of investing, investors can avoid costly mistakes. One example of a typical investment error is the trade-off between risk and return. The trade-off seems to imply that if you bear more risk you will have higher long-run average returns. That conclusion is false. It is possible to bear a great deal of risk and get no benefit in terms of higher average return. \u003c\/p\u003e\u003cp\u003e\u003ci\u003eThe Conceptual Foundations of Investing\u003c\/i\u003e is a resource written for individual and professional investors who want to add active elements to their portfolio.  \t\t \u003c\/p\u003e\u003cp\u003ePraise for\u003cb\u003e THE CONCEPTUAL FOUNDATIONS OF INVESTING\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\"There are very few people in finance who can span the divide between academia and practice, but Brad Cornell is an exception. This book is a perfect illustration of how you can answer every day investing questions with tools from finance, economics and statistics, and I strongly recommend that anyone interested in markets read it.\" \u003cb\u003e— Aswath Damodaran,\u003c\/b\u003e Kerschner Professor of Finance, Stern School of Business, NYU \t \u003c\/p\u003e\u003cp\u003e\"Brad is one of the most insightful financial thinkers and investors in our industry. His publications and investment results put him in the most rarified peer group and make this book a must-read.\" \u003cb\u003e— Jason Hsu,\u003c\/b\u003e Chairman and CIO, Rayliant Global Advisors, Co-founder, Research Affiliates \t \u003c\/p\u003e\u003cp\u003e\"A tour de force! Brad Cornell has made much of modern quantitative finance – in theory and practice – accessible to any intelligent investor. This should be the text for coursework on introductory finance.\" \t\u003cb\u003e— Rob Arnott,\u003c\/b\u003e Chairman, Research Affiliates  \u003c\/p\u003e\u003cp\u003e\u003cb\u003eA STRAIGHTFORWARD GUIDE TO THE FUNDAMENTAL CONCEPTS OF INVESTING, WITH A FOCUS ON ACTIVE INVESTING\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e\u003ci\u003e\"In the years following the development of the capital asset pricing model in 1964, research in finance has revolutionized the understanding of financial markets. The problem is that much of the research that produced that revolution is highly technical and mathematical, making it difficult for investors who are not experts to grasp the conceptual foundations on which the modern understanding of investing is based.\u003c\/i\u003e \u003c\/p\u003e\u003cp\u003e\u003ci\u003eThis book is designed to fill that gap. Its goal is to provide an understanding of the conceptual foundations of modern investment theory with a minimum of technical detail\u003c\/i\u003e.\" \u003cb\u003e —From the Preface\u003c\/b\u003e\u003c\/p\u003e\u003ci\u003eThe Conceptual Foundations of Investing\u003c\/i\u003e offers an essential resource for individuals and professionals who want to have a clear understanding of the conceptual foundations that underpin investing. The authors have written an accessible guide for avoiding uncompensated risks and making responsible investment decisions.","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990193881317,"sku":"NP9781119516293","price":34.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119516293.jpg?v=1761786866","url":"https:\/\/k12savings.com\/products\/the-conceptual-foundations-of-investing-isbn-9781119516293","provider":"K12savings","version":"1.0","type":"link"}