Table of Contents

The Investment Setting.

UNDERSTANDING THE CLIENT.

Risk and Utility: Basics.

Models of Risk.

Alternative Measures of Risk.

Tax Considerations in Investing.

THE ASSET ALLOCATION DECISION.

Global Management and Asset Allocation.

Active Asset Allocation.

THE ASSET SELECTION DECISION.

Asset Selection: Strategies and Evidence.

Investment Strategy.

PORTFOLIO EXECUTION.

Trading Costs.

The Hidden Costs of Trading.

Managing Portfolio Risk.

PERFORMANCE EVALUATION.

Evaluating Investment Performance.

Taxes and Performance Evaluation.

CORPORATE GOVERNANCE AND INVESTMENT MANAGEMENT.

U.S.

Corporate Governance: Lessons from the 1980s.

Chapeter Notes.

Glossary.

Index.

About the Author

PETER L. BERNSTEIN is President of Peter L. Bernstein, Inc., economic consultants to institutional investors and corporations. A longtime participant in the world of finance as a money manager, teacher, and writer, he was the founder of the Journal of Portfolio Management and is the publisher of the biweekly, Economics and Portfolio Strategy. His seven books include Against the Gods: The Remarkable Story of Risk (Wiley), and Capital Ideas: The Improbable Origins of Modern Wall Street.

ASWATH DAMODARAN is Associate Professor of Finance at New York University's Stern School of Business and the author of numerous books, including Investment Valuation and Corporate Finance: Theory and Practice, both published by Wiley. He was voted one of the top twelve business educators in the United States by BusinessWeek.