The process of portfolio management -- Valuation, risk, return, and uncertainty -- Setting portfolio objectices -- Investment policy -- The mathematics of diversification -- Why diversification is a good idea -- International investment and diversification -- The capital markets and market efficiency -- Picking the equity players -- Equity valuation -- Security screening -- Bond pricing and selection The role of real assets -- Alternative assets -- Revision of the equity portfolio -- Revision of the fixed-income portfolio -- Principles of options and option pricing -- Option overwriting -- Performance evaluation -- Fiduciary duties and responsibilities -- Principles of the futures market -- Benching the equity players -- Removing interest-rate risk -- Integrating derivative assets and portfolio management -- Contemporary issues in portfolio management

1. Portfolio management