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Pedagogical Features
We have included many pedagogical features in this text that will be valuable learning
tools for your students. This walkthrough highlights some of the most important elements.
Chapter 2
Diversification and
Asset Allocation
“Out of this nettle, danger,
We pluck this flower, safety.”
–Shakespeare, Henry IV
Intuitively, we all know that diversification is important for managing investment risk. But how exactly does diversification work, and how can we be sure we have
an efficiently diversified portfolio? Insightful answers can be gleaned from the modern theory of diversification and asset allocation. ■
In this chapter, we examine the role of diversification and asset allocation in investing.
Most of us have a strong sense that diversification is important. After all, “Don’t put
all your eggs in one basket” is a bit of folk wisdom that seems to have stood the test of
time quite well. Even so, the importance of diversification has not always been well
Chapter Openers
These one-paragraph
introductions for each chapter
present facts and
misconceptions that may
surprise you. An explanation
is more fully developed in the
chapter.
understood. For example, noted author and market analyst Mark Twain recommended:
“Put all your eggs in the one basket and—WATCH THAT BASKET!” This chapter
shows why this was probably not Twain’s best piece of advice.
Key Terms
Key terms are indicated in bold and defined
in the margin. The running glossary in the
margin helps students quickly review the
basic terminology for the chapter.
investment
Web Addresses
Websites are called out in
the margins, along with a
notation of how they relate
to the chapter material.
opportunity set
Collection of possible
risk–return combinations
available from portfolios
of individual assets.
Review modern
portfolio theory at
www.moneychimp.
com
a hyperbola). This curve is called an investment opportunity set because it shows the
possible combinations of risk and return available from portfolios of these two assets.
One important thing to notice is that, as we have shown, there is a portfolio that has the
smallest standard deviation (or variance—same thing) of all. It is labelled “minimum
variance portfolio” in Figure 2.4. What are (approximately) its expected return and
standard deviation?
Now we see clearly why a 100 percent bonds strategy is a poor one. With a 10 percent standard deviation, the bond fund offers an expected return of 6 percent. However,
Table 2.9 shows us that a combination of about 60 percent stocks and 40 percent bonds
has almost the same standard deviation, but a return of about 9.6 percent. Comparing
9.6 percent to 6 percent, we see that this portfolio has a return that is fully 60 percent
greater (6% ⫻ 1.6 ⫽ 9.6%) with the same risk. Our conclusion? Asset allocation
matters.
xxi
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Pedagogical Features
Check This!
Every major section in each chapter ends
with questions for review. This feature
helps students test their understanding
of the material before moving on to the
next section.
How to Profit in a Bear Market
Money Manager Nick Majendie Raises Cash
Holdings, Expects S&P 500 Dive
Nick Majendie, senior vice-president of Canaccord Capital Corp. in Vancouver, admits to feeling a little lonely
these days. After all, it is not easy being a significant
bear on the U.S. stock market.
Mr. Majendie believes the S&P’s 500-stock index,
which closed yesterday at 1,183.81, could fall to 930
next year. That is more than 200 points lower than one
of the least optimistic market projections by analysts
south of the border.
And 930 may not even mark the bottom for the cyclical bear market Mr. Majendie sees developing if, for example, the U.S. economy sinks into recession late next
year or early 2006. He doesn’t expect a recession, but
he won’t rule it out either.
Cyclical Backgrounder
Mr. Majendie draws a parallel between the present situation in the U.S. market and the secular bear market
that took place between 1966 and 1982. However,
Work the Web
Various actual screenshots are
showcased throughout the text to
illustrate how to access specific
features of selected websites.
✓
3.1a
3.1b
Check This
What are the differences between full-service and deep-discount brokers?
What is the CIPF? How does CIPF coverage differ from CDIC
coverage?
INVESTMENT UPDATES
percentage to 25 or 30 percent by early next year. The
notes, which have been arranged through a chartered
bank, not only protect against market declines but actually provide a significant positive return in such an
event. Should the market continue to rise, there will be
a moderate loss.
Mr. Majendie also plans to raise cash holdings in the
portfolios in the first half of 2005.
He notes he might go as high as 50 percent cash in
the coming cyclical bear market, unlike the prior one in
2000–2002 when he held a maximum of 25 percent.
And he is doing some judicious stock picking.
What Should Investors Do?
That is where the ”highly selective” stock picking comes
in. Mr. Majendie says stock picking will prove even more
important in the coming bear market than it was in
the past one, when about a third of the stocks on the
Toronto Stock Exchange actually rose. He suspects that
only about 15 percent of the TSX stocks may buck the
trend this time around.
He looks to gold stocks to out shine the market in
Investment Updates
These boxed readings,
reprinted from various
business press sources,
provide additional realworld events and
examples to illustrate the
material in the chapter.
Some articles are from
the past two years to
highlight very recent
events, and others
present events of more
historical significance.
WORK THE WEB
Charts are easy to draw online. Two of the best sites are stockcharts.com and www.
bigcharts.ca. Here is an example from finance.yahoo.com:
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Pedagogical Features
xxiii
Spreadsheet Analysis
SPREADSHEET ANALYSIS
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
B
C
D
E
F
G
H
Self-contained
spreadsheet examples
show students how to set
up spreadsheets to solve
problems—a vital part of
every business student’s
education.
Treasury Bill Price and Yield Calculations
A Treasury bill traded on March 14, 2004, pays $100 on June 1, 2004. Assuming a
discount rate of 6 percent, what are its price and bond equivalent yield?
Hint: Use the Excel function TBILLPRICE and TBILLEQ.
$98.6833
= TBILLPRICE("3/14/04","6/1/04",0.06)
6.164%
= TBILLEQ("3/14/04","6/1/04",0.06)
A credit card charges a nominal annual interest rate of 15 percent. With interest
charged monthly, what is the effective annual rate (EAR) on this credit card?
Hint: Use the Excel function EFFECT.
16.075%
= EFFECT(0.15,12)
Numbered Examples
Separate numbered and titled
examples are integrated
throughout the chapters. Each
example illustrates an intuitive or
mathematical application in a
step-by-step format. There is
enough detail in the explanations
that the student does not have to
look elsewhere for additional
information.
CALCULATING INITIAL MARGIN
EXAMPLE 3.2
Suppose you have $6,000 in cash in a trading account with a 50 percent initial margin requirement.
What is the largest order you can place (ignoring commissions)? If the initial margin were 60 percent,
how would your answer change?
When the initial margin is 50 percent, you must supply half of the total, so $12,000 is the largest
order you could place. When the initial margin is 60 percent, your $6,000 must equal 60 percent of
the total. In other words, it must be the case that
$6,000 0.60 Total order
Total order $6,000 / .60
$10,000
As this example illustrates, the higher the initial margin required, the less you can borrow.
As Example 3.7 shows, you can calculate the critical price on a short sale (the highest price before you get a margin call) as follows:
P* (Initial margin deposit Short proceeds) / Number of shares
1 Maintenance margin
(3.2)
For example, suppose you shorted 1,000 shares at $50. The initial margin is 50 percent,
and the maintenance margin is 40 percent. What’s the critical stock price, and how do
you interpret it?
Noting that the initial margin deposit is $25,000 (50 percent of the short proceeds),
see if you don’t agree that the critical stock price, P*, is $75/1.4 ⫽ $53.57. So, if the
stock price rises above 53.57, you’re subject to a margin call.
Numbered Equations
Key equations are highlighted and
numbered sequentially in each
chapter for easy reference.
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Pedagogical Features
Figures and Tables
FIGURE 11.1
Premium, Par, and Discount Bond Prices
140
130
Bond prices (% of par)
This text makes extensive use
of real data and presents them
in various figures and tables.
Explanations in the narrative,
examples, and end-of-chapter
problems will refer to many of
these exhibits.
Figure 11.1 also describes the paths of premium and discount bond prices as their
maturities shorten with the passage of time, assuming no changes in yield to maturity.
As shown, the time paths of premium and discount bond prices follow smooth curves.
Over time, the price of a premium bond declines and the price of a discount bond rises.
At maturity, the price of each bond converges to its par value.
Premium
120
110
Par
100
90
Discount
80
70
30
25
15
20
10
5
0
Time to maturity (years)
TABLE 11.2
Twenty-Year Bond Prices and Yields
Yields
6 Percent
8 Percent
10 Percent
6%
8%
10%
$1,000.00
802.07
656.82
$1,231.15
1,000.00
828.41
$1,462.30
1,197.93
1,000.00
Coupon Rates
TABLE 11.2
Twenty-Year Bond Prices and Yields
theorem states, the effect increases at a diminishing
as the maturity lengthens.
Couponrate
Rates
ToYields
see this, notice that $136.10
is
67.7
percent
larger
than
$81.14, while $198.79
is
Percent
8 Percent
10 Percent
theorem
thelarger
effect6than
increases
at a diminishing
rate as the maturity lengthens.
only 46.1states,
percent
$136.10.
To 6%
see
this,
notice
that
$136.10
than
$81.14,
while
$198.79
$1,000.00is 67.7 percent larger
$1,231.15
$1,462.30is
To illustrate the last two theorems, we present prices for 20-year maturity bonds
only
$136.10.
8%46.1 percent larger than
802.07
1,000.00
1,197.93
with
coupon
rates and yields
to
maturity
of 6Prices
percent,
percent, and 10 percent
(again,
TABLE
11.2
Twenty-Year
Bond
and 8Yields
To illustrate
last two656.82
theorems,
we present
prices
bonds
10%
828.41for 20-year maturity
calculate
these the
for practice)
in Table 11.2.
To illustrate
the fourth theorem, 1,000.00
compare
with
coupon
rates
and
yields
to
maturity
of
6
percent,
8
percent,
and
10
percent
(again,
Coupon
Rates
the loss on the 6 percent and the 8 percent bonds as yields move from 8 percent to 10
calculate
these
inloses
Table
11.2.
To
the
fourth
theorem,
compare
theorem
states,
thepractice)
effect
increases
at
a diminishing
rate
as
the maturity
lengthens.
percent.
6 for
percent
bond
($656.82
⫺ illustrate
$802.07)
/ $802.07
⫽ ⫺18.1%.
The 8
Yields The
6 Percent
8 Percent
10
Percen
the
thenotice
6 percent
and the
8ispercent
bonds
as⫽yields
move
fromwhile
8 percent
to
10is
Toloss
see on
this,
that
$136.10
67.7 percent
larger
than
$81.14,
$198.79
percent
bond
loses
($828.41
⫺
$1,000)
/
$1,000
⫺17.2%,
showing
that
the
bond
6% The
$1 000
00 ($656.82
$1 231rate
15
$1
462
38
percent.
6
percent
bond
loses
⫺
$802.07)
/
$802.07
⫽
⫺18.1%.
The
theorem
states,
the
effect
increases
at
a
diminishing
as
the
maturity
lengthe
only the
46.1lower
percent
largeristhan
$136.10.
with
coupon
more
sensitive to a change in yields. You can (and should)
percent
bond
41 ⫺10$1i 000)
showing
that $198
the bond
T
thi loses
ti ($828
th t $136
67 7/ $1 000t l⫽ ⫺17th2% $81
14 hil
79
Summary and
Conclusions
Each chapter ends with a
numbered summary that
highlights the important
points of the chapter. This
provides a handy checklist
for students when they
review the chapter.
5.10 Summary and Conclusions
We have covered many aspects of mutual fund investing in this chapter. We have seen
that there are thousands of mutual funds and dozens of types. A few of the more important distinctions we made can be summarized as follows:
1. Some funds are open-end and some are closed-end. Open-end funds stand
ready to buy or sell shares. Closed-end funds do not; instead, their shares trade
on the stock exchanges.
2. Some open-end funds have front-end loads, meaning that there is a fee tacked
on to the fund’s net asset value when you buy. Other funds are no-load. Various
costs and fees exist, including back-end loads and special fees.
3. Funds have very different objectives and, as a result, very different risk and
return potentials. Furthermore, funds with similar-sounding objectives can, in
fact, be quite different. It is important to consider a fund’s actual holdings and
investment policies, not just read its stated objective.
4. Mutual fund information is widely available, but performance information
should be used with caution. The best performing funds are often the ones with
the greatest risks or the ones that just happened to be in the right investment at
the right time.
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xxv
Real World
Real World
This chapter covered the essentials of mutual funds. How should you, as an investor or
investment manager, put this information to work?
The first thing to do is to start looking at mutual fund prospectuses. These are written to be accessible to novice investors (or, at least, they are supposed to be written that
way). The best way to begin exploring is to visit websites. Almost any large mutual fund
company will have extensive online information available. Links to some of the better
known families are available at our Web page. It is important to look at different funds
within a given family and also to look across families. Compare growth funds to growth
funds, for example. This adventure will give you some of the real-life background you
need to select the types of funds most suitable for you or someone else.
Once you have examined prospectuses on different funds, it’s time to invest. Beginning with your simulated account, pick a few funds, invest, and observe the outcomes.
Open-end mutual funds are probably the place most of you will begin investing real dollars. An initial purchase can be made with a relatively small amount, perhaps $500, and
subsequent purchases can be made in amounts of as little as $100 or less.
Most important of all, as we discussed to start the chapter, most employers now
provide employees with retirement plans. The way these work is that, typically, your
employer will make a contribution to a mutual fund you select (often from a fairly limited
set). Your employer may even match, or more than match, a contribution you make.
Such plans may be the only retirement benefit offered, but they can be an extraordinary
opportunity for those who take full advantage of them by getting the largest possible
Students are provided with one to
three practice problems per chapter
with worked-out solutions to test
their abilities in solving key
problems related to the content of
the chapter.
IQ
Chapter Review Problems and Self-Test
1.
2.
Front-End Loads The Madura HiGro Fund has a net asset value of $50 per share. It
charges a 3 percent load. How much will you pay for 100 shares?
Turnover The Starks Income Fund’s average daily total assets were $100 million for
the year just completed. Its stock purchases for the year were $20 million, while its sales
were $12.5 million. What was its turnover?
Answers to Self-Test Problems
1. You will pay 100 times the offering price. Since the load is computed as a percentage of
the offering price, we can compute the offering price as follows:
Net asset value ⫽ (1 ⫺ Front-end load) ⫻ Offering price
In other words, the NAV is 97 percent of the offering price. Since the NAV is $50, the
offering price is $50 / .97 ⫽ $51.55. You will pay $5,155 in all, of which $155 is a load.
Test Your Investment Quotient
1. Investment Companies Which of the following statements typically does not
characterize the structure of an investment company?
a. An investment company adopts a corporate form of organization.
b. An investment company invests a pool of funds belonging to many investors in a portfolio of individual investments.
c. An investment company receives an annual management fee ranging from 3 to 5 percent of the total value of the fund.
d. The board of directors of an investment company hires a separate investment management company to manage the portfolio of securities and handle other administrative
duties.
2. Expense Statement Which of the following is not part of the expense statement?
a. Shareholder transactions expenses
b. Shareholder demographic profile
c. Annual operating expenses
d. A hypothetical example of expenses
3. Mutual Fund Investing Which of the following is the least likely advantage of mutual
fund investing?
a. Diversification
b. Professional management
c. Convenience
d. Mutual fund returns are normally higher than market average returns
www.mcgrawhill.ca/college/corrado
Chapter Review Problems
and Self-Test
For instructors looking to give
their students a taste of what it
means to be an investment
manager, this feature (at the end
of each chapter) acts as that
first step by explaining to
students how they can actually
apply the material they just
learned. The Real World boxes
encourage students—whether
for practice, in a trading
simulation, or with real
money—to make investment
decisions, and they also give
some helpful tips to keep in
mind.
Test Your IQ
An average of 15 multiplechoice questions are included
for each chapter, many of
which are taken from past
CFA exams. Answers to
these questions appear in
Appendix A.
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Pedagogical Features
Concept Questions
At the end of every chapter are
10–15 concept questions that
further reinforce key concepts
found throughout the chapter.
Concept Questions
1. Fund Ownership Who actually owns a mutual fund? Who runs it?
2. Loads Given that no-load funds are widely available, why would a rational investor pay
a front-end load? More generally, why don’t fund investors always seek out funds with
the lowest loads, management fees, and other fees?
3. Money Market Funds Is it true that the NAV of a money market mutual fund never
changes? How is this possible?
4. Money Market Deposit Accounts What is the difference between a money market
deposit account and a money market mutual fund? Which is riskier?
5. Fund Goals What is a capital appreciation fund? An equity income fund? Which is
likely to be riskier? Why?
Questions and Problems
Questions and Problems
Core Questions
1. Net Asset Value The World Income Appreciation Fund has current assets with a market
value of $3.5 billion and has 110 million shares outstanding. What is the net asset value
(NAV) for this mutual fund?
2. Front-End Loads Suppose the mutual fund in the previous problem has a current
market price quotation of $33.67. Is this a load fund? If so, calculate the front-end load.
3. Calculating NAV The Tiki Growth and Equity Fund is a “low-load” fund. The current
offer price quotation for this mutual fund is $40.30, and the front-end load is 2.0 percent.
What is the NAV? If there are 12.5 million shares outstanding, what is the current market
value of assets owned by the Tiki fund?
4. Money Market Funds The Johnson Liquid Assets Money Market Mutual Fund
has a NAV of $1 per share. During the year, the assets held by this fund appreciated by
4.3 percent. If you had invested $25,000 in this fund at the start of the year, how many
shares would you own at the end of the year? What will the NAV of this fund be at the
end of the year? Why?
What’s on the Web?
These three to five end-of-chapter
activities show students how to
use and learn from the vast
amount of financial resources
available on the Internet.
A variety of problems (average of 20
per chapter) are included in each chapter
to test students’ understanding of the
conceptual and mathematical elements.
Each problem is labelled with the
subject and the level—core or
intermediate. Selected answers appear
in Appendix B, and complete solutions
are included in the Instructor’s Manual.
What’s on the Web?
1.
2.
Bond Funds One of the best Internet sites for information on mutual funds is
www.morningstar.ca. Go to the website and find the ticker symbol for the BMO Bond
Fund. Find all of the following information on the website for this fund: loads, expense
ratio, top five holdings, bond quality ratings, the fund’s rank in its category for the last
seven years, and the Morningstar rating. Next, find out how the Morningstar star ranking
system works.
Stock Funds Go to www.morningstar.ca and find the ticker symbol for a domestic
stock fund. Enter the ticker symbol and find the following information for the fund:
manager and manager start date, year-to-date return, three-year return, five-year return,
front-end or back-end loads, management fees, expense ratio, the top 25 holdings, and the
fund address and phone number.
S&P Problems
www.mcgrawhill.ca/edumarketinsight
1. Margin Download the historical stock prices for Telus Corporation (TU) under the
“Mthly. Adj. Prices” link. Assume you purchased 400 shares of Telus Corporation stock at
the closing price six months ago. The initial margin requirement is 50 percent and the
maintenance margin is 30 percent. Show the account balance sheet based on monthly
closing prices for the last five months. At what stock price will you receive a margin call?
Are any margin deposits required over this period? What is your return on this investment?
2. Short Sales Download the historical stock prices for Celestica Inc. (CLS) under the
“Mthly. Adj. Prices” link. Assume you short sold 200 shares of Celestica stock at the
closing price six months ago. The initial margin requirement is 50 percent and the
maintenance margin is 30 percent. Show the account balance sheet based on monthly
closing prices for the last five months. At what stock price will you receive a margin call?
Are any margin deposits required over this period? What is your return on this investment?
S&P Problems
These optional end-of-chapter
questions are problems directly
incorporating the Educational
Version of Market Insight, a
service based on Standard &
Poor’s renowned Compustat®
database. These problems provide
you with an easy method of
including current real-world data
into your course. See page xxxi
for additional information.
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xxvii
Stock-Trak Exercises
Unique to this text! This text is the
only book that incorporates StockTrak Portfolio Simulations® exercises.
Stock-Trak is one of the most
successful trading simulations with
over 30,000 post-secondary students
having trading accounts each semester
(see Supplements for more
information). Go to the next level in
teaching your students about
investments management by
encouraging your students to use this
product. This section, included in most
of the chapters, briefly summarizes
topics from the chapter and asks
students to perform certain trades as
covered in the text.
Stock Market Day Trading with Stock-Trak
The Internet has given rise to a new breed of stock market investors—day traders. Day traders
buy and sell common stocks within a day and typically close out their positions before the end
of the day to avoid carrying a stock position overnight. The most popular trading strategy among
day traders is “momentum trading,” whereby the day trader tries to identify stocks that have
started moving up and will continue to move up through the day. Once a stock is identified, the
day trader buys the stock and tracks its progress through the day. Some time later—perhaps a
few minutes, perhaps a few hours—the day trader sells the stock to close out the position before
the end of trading that day.
How do you identify stocks with sustainable momentum? Day traders often use sophisticated
computer programs to assist their decision processes, but they must ultimately depend on instincts. While most day traders have a difficult time recouping their trading expenses, there are
often spectacular successes to inspire the would-be trader. The beauty of a Stock-Trak account
is that you can try your hand at day trading without risking your own capital.
To try your hand at day trading using your Stock-Trak account, simultaneously log on to an
Internet stock quote server and the Stock-Trak website in the morning, ideally about an hour or
two after NYSE trading has started. Note that Web browsers support several different sessions
at one time and many stock quote servers also provide stock price charts. Next, identify several
stocks that are up since the opening of trading that day. Most stock quote servers report intraday
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Pedagogical Features
Technology Solutions
Online Learning Centre
More and more students are studying online. That is why we offer an Online Learning
Centre (OLC) that follows Fundamentals of Investments chapter by chapter. You don’t
have to build or maintain anything and it’s ready to go the moment you and your
students type in the URL;
www.mcgrawhill.ca/college/corrado
As your students study, they can refer to the OLC website for such benefits as:
●
Online Quizzes
®
●
Glossary and Key Terms
●
Summary and Conclusions
Real World
●
Link to Stock-Trak
●
The Globe and Mail Headline Links
●
●
Finance Around the World
●
Video Clips
●
Study to Go
●
What’s on the Web
Remember, the Fundamentals of Investments OLC content is flexible enough to use
with any course management platform currently available. If your department or
school is already using a platform, we can help. For information on our course
management services, contact your iLearning Sales Specialist or see “Superior
Service” on page xxx.
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Pedagogical Features
xxix
Classroom Performance System (CPS)
Bring interactivity into the classroom or lecture hall
CPS, by eInstruction, is a student response system using wireless connectivity. It gives
instructors and students immediate feedback from the entire class. The response pads
are remotes that are easy to use and engage students.
●
●
●
●
CPS helps you to increase student preparation, interactivity, and active learning
so you can receive immediate feedback and know what students understand.
CPS allows you to administer quizzes and tests, and provide immediate grading.
With CPS you can create lecture questions that can be multiple-choice,
true/false, and subjective. You can even create questions on-the-fly as well as
conduct group activities.
CPS not only allows you to evaluate classroom attendance, activity, and grading
for your course as a whole, but CPS Online allows you to provide students with
an immediate study guide. All results and scores can easily be imported into
Excel and can be used with various classroom management systems.
CPS-ready content is available for use with the book. Please contact your iLearning
Sales Specialist for more information on how you can integrate CPS into your investments classroom.
Mobile Learning
Study To Go The businesses and companies of today want their new employees to be
adept in all aspects of the changing business environment. They are quick to tell us
they want graduates with the skills of tomorrow … today. From laptops to cell phones
to PDAs, the new medium is mobility.
As a leader in technology and innovation, McGraw-Hill Ryerson has developed material providing students with optimum flexibility for use anytime, anywhere they need
to study—whether with a laptop, PDA, or tablet. These innovations provide instructors
with a number of exciting ways to integrate technology into the learning process.
With Study To Go we have introduced wireless activities as a part of our Online
Learning Centre. Now, whether you are waiting in line, riding on transit, or just filling
some spare time, homework and practice are just a click away.
PowerWeb and PowerWeb To Go Keeping your course current can be a job in itself, and now McGraw-Hill Ryerson can do it for you. PowerWeb extends the learning experience beyond the core textbook by offering all the latest news and
developments pertinent to your course via the Internet, without all the clutter and dead
links of a typical online search.
PowerWeb offers current articles related to investments, weekly updates with assessment tools, informative and timely world news culled by a finance expert, refereed
Web links, and more. In addition, PowerWeb provides an array of helpful learning
aids, including self-grading quizzes and interactive glossaries and exercises. Students
may also access study tips, conduct online research, and learn about different career
paths. Visit the PowerWeb site at http://www.dushkin.com/powerweb and see firsthand
what PowerWeb can mean to your course.
PowerWeb To Go is a new McGraw-Hill content offering designed specifically for
use on handheld devices. PowerWeb To Go content consists of current news stories,
weekly updates, and magazine articles developed specifically for investments. It is
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revised daily, giving you the most up-to-date, course-specific information available
and is easily loaded onto your Pocket PC or Palm OS handheld device. Visit the
PowerWeb To Go site at www.powerwebtogo.com for information on how you can sign
up today.
Course Management
PageOut McGraw-Hill Ryerson’s course management system, PageOut, is the easiest way to create a website for your investments course. There is no need for HTML
coding, graphic design, or a thick how-to book. Just fill in a series of boxes in plain
English and click on one of our professional designs. In no time, your course is online!
For the integrated instructor, we offer Fundamentals of Investments content for
complete online courses. Whatever your needs, you can customize the Fundamentals
of Investments Online Learning Centre content and author your own online course materials. It is entirely up to you. You can offer online discussion and message boards that
will complement your office hours, and reduce the lines outside your door. Content
cartridges are also available for course management systems, such as WebCT and
Blackboard. Ask your iLearning Sales Specialist for details.
TM
Superior Service
Service takes on a whole new meaning with McGraw-Hill Ryerson and Fundamentals
of Investments. More than just bringing you the textbook, we have consistently raised
the bar in terms of innovation and educational research—both in finance and in education in general. These investments in learning and the education community have
helped us to understand the needs of students and educators across the country, and
allowed us to foster the growth of truly innovative, integrated learning.
ADVANTAGE
McGraw-Hill Ryerson
Integrated Learning Your Integrated Learning Sales Specialist is a McGraw-Hill
Ryerson representative who has the experience, product knowledge, training, and support to help you assess and integrate any of our products, technology, and services into
your course for optimum teaching and learning performance. Whether it’s helping
your students improve their grades, or putting your entire course online, your iLearning Sales Specialist is there to help you do it. Contact your iLearning Sales Specialist
today to learn how to maximize all of McGraw-Hill Ryerson’s resources!
iLearning Services McGraw-Hill Ryerson offers a unique iServices package
designed for Canadian faculty. Our mission is to equip providers of higher education
with superior tools and resources required for excellence in teaching. For additional
information, visit www.mcgrawhill.ca/highereducation/iservices.
Teaching
Learning & Technology
Conference Series
McGraw-Hill Ryerson
Teaching, Technology & Learning Conference Series The educational environment
has changed tremendously in recent years, and McGraw-Hill Ryerson continues
to be committed to helping you acquire the skills you need to succeed in this
new milieu. Our innovative Teaching, Technology & Learning Conference Series
brings faculty together from across Canada with 3M Teaching Excellence award
winners to share teaching and learning best practices in a collaborative and stimulating
environment. Pre-conference workshops on general topics, such as teaching large
classes and technology integration, will also be offered. We will also work with
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you at your own institution to customize workshops that best suit the needs of your
faculty.
Research Reports into Mobile Learning and Student Success These landmark
reports, undertaken in conjunction with academic and private sector advisory boards,
are the result of research studies into the challenges professors face in helping students
succeed and the opportunities that new technology presents to impact teaching and
learning.
Comprehensive Teaching and Learning Package
We have developed a number of supplements for both teaching and learning to
accompany this text:
For Instructors
Instructor’s Online Learning Centre (www.mcgrawhill.ca/college/corrado)
The Online Learning Centre includes a password-protected website for instructors. The
site offers downloadable supplements, and PageOut, the McGraw-Hill Ryerson course
website and development centre.
Instructor’s Resource CD-ROM
The Instructor’s Resource CD-ROM contains the following assets:
Instructor’s Manual, prepared by Ayşe Yú´ce, Ryerson University
Developed to clearly outline the chapter material as well as provide extra
teaching support, the first section of the Instructor’s Manual includes an
annotated outline of each chapter with suggested websites, references to
PowerPoint slides, teaching tips, additional examples, and current events
references. The second section contains complete worked-out solutions for
the end-of-chapter questions and problems.
Test Bank, prepared by Keith Cheung, University of Windsor With almost
1,500 questions, this Test Bank, in Rich Text Format, provides a variety of
question formats (true-false, multiple-choice, fill-in-the blank, and problems)
and levels of difficulty to meet any instructor’s testing needs.
PowerPoint Presentation
The PowerPoint package contains relevant figures and tables from the text,
lecture outlines, and additional examples that you can customize for your lecture.
Standard & Poor’s Educational Version of Market Insight
McGraw-Hill Ryerson and the Institutional Market Services division of Standard &
Poor’s are pleased to offer instructors and students with optional access to the educational version of Standard & Poor’s Market Insight. The Educational Version of Market
Insight is a rich online resource that provides six years of fundamental financial data for
over 1,000 companies in the database. S&P-specific problems can be found at the end
of almost all chapters in this text. For more details on how to make this optional service
available to your students please contact your local ilearning sales specialist.
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Stock-Trak® Portfolio Stimulation
Give your students investment management experience! McGraw-Hill Ryerson has
partnered with Stock-Trak and is providing with each new text book, a one-semester
subscription to the Stock-Trak Portfolio Simulation. Stock-Trak gives students $500,000
and allows them to trade stocks, options, futures, bonds, mutual funds, and international
stocks—no other simulation offers all these-types of securities! Instructors receive
reports every week. All trades are done on the Web at www.stocktrak.com/cj. See this
site for more information and refer to the card at the front of the text for your individual
certificate number required to gain access to the site.
For Students
Student Online Learning Centre (www.mcgrawhill.ca/college/corrado)
The Online Learning Centre prepared by Eric Wang, Athabasca University, includes
online study material including self-grading quizzes, review material, video clips, and
much more! There is also a link to Finance Around the World, a tremendous resource
that takes students to important and popular finance websites throughout the world.