Scientific Investment Analysis

A state-of-the art treatment offering scientific procedures that require no special scientific expertise, Murphy's unusual new book provides a unified framework for the evaluation of investment assets and strategies—a particularly useful way to conduct security analysis, portfolio management, and trading, and for other general investment applications. Murphy covers practical methods for credit analysis and demonstrates ways to value equities using a pro forma model that integrates forecasting with the detailed use of financial statements and footnotes. Scientific Investment Analysis explains how to evaluate both fixed income securities and equities, as well as options, futures, and investment companies. It illustrates the use of practical dynamic software for valuing complex call, conversion, and other option features embedded in security contracts. The valuation concepts he presents are well grounded in theory and empirical investigation and explained within the context of international portfolio management. The effects of trading, tax, and regulatory environments on market prices and investment strategies are thoroughly discussed. This is an important resource for investment analysts, researchers, advisers, and brokers, an as excellent text for students in advanced investment or portfolio management at upper university levels.