The book is concerned with the theory of portfolios, as well as with investing in assets and securities and offers a general introduction, rather than a toolbox for making money. It will help its readers to better understand investing. The book is structured in two parts. Part I introduces the student into fundamental principles of portfolio theory and investment analysis, such as the Markowitz portfolio selection approach, factor models, basic evaluation techniques and portfolio management. Part II extends the material to more advanced topics and focuses on inefficient markets, including topics including technical analysis and momentum effects, behavioural finance, bubbles and herding, portfolio management in inefficient markets and market microstructure. followed by an appendix consisting of primers to some econometric approaches.
Michael Frömmel is a Full Professor of Finance at Ghent University, where he has been teaching and conducting research since 2007. His work focuses on empirical financial market analysis, including international financial markets, foreign exchange, market microstructure, and institutional asset management. He earned his doctoral degree in Economics from Leibniz University Hannover (summa cum laude) and has published a large number of articles in international peer reviewed journals, several books, and numerous book chapters.
He has held visiting research and teaching positions at universities and research institutes worldwide, including the London School of Economics, the Austrian National Bank, the Hungarian National Bank, the Bulgarian National Bank, the Higher School of Economics in Saint Petersburg, and Shanghai Dian Ji University. His international research visits also include collaborations with central banks and economic research institutes in Europe, working on projects related to exchange rate modelling, credit market dynamics, volatility, and financial market microstructure.
In addition to his academic output, Froemmel has collaborated with the financial industry in projects on trading behaviour, market efficiency, and asset pricing. He has coordinated major international research projects funded by national and international research foundations, and he has supervised many PhD students. He regularly presents his work at leading international finance conferences.
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