Part �� Overview on International Investment Chapter 1 Overview on International Investment The requirement of Learning 1 The conception and thetypes 1��1 The conception 1��2 The types 2 International Investments and Balance of Payments 2��1 Basic structure 2��2 The reconciliation of BOP and IIP 3 The difierence of FDI and IPI 4 Development of International Investment 4��1 Before 1914 4��2 During the period of the world wars 4��3 From the end of world war It to 1979 4��4 From 1980s to 2000s 4��5 From 2000s to 2010 4��6 The Latest development of International investment Summary Exercises Part �� International Portfolio Investment(IPI) Chapter 2 Diversification and Portfolio Theory The requirement of Learning 1 Why a Diversified Portfolio Investment is Important 1��1 Avoiding Disaster 1��2 Portfolio��Reduce Risk 2 The Modem Portfolio Theory 2��1 The Emergence of Modem Portfolio Theory 2��2 The Theory of Security Portfolio Summary Exercises Chapter 3 CAPM and International CAPM The requirement of Learning 1 Capital Assets Pricing Model(CAPM) 1��1 Assumptions 1��2 The capital market line 1��3 The market portfolio 1��4 The eIbcient set 1��5 The security market line 1��6 Market and Non-Market Risk 2 International CAPM 2��1 Real exchange rate 2��2 Foreign Currency Risk Premiums 2��3 Separation Theorem and Risk-pricing relation Summary Exercises Chapter 4 The Practice for International Diversification The requirement of Learning 1 Traditional Case International Diversification 1��1 Risk Reduction through Attractive Correlations 1��2 Portfolio Return Performance 1��3 Forward-Looking Optimization 1��4 Currency Risk Not a Barrier to International Investment 2 The Case Against International Diversification 2��1 Increase in Correlations 2��2 Past Performance Is a Good Indicator of Future Performance 2��3 Barriers to International Investments 3 The Case for Emerging Markets 3��1 The Basic Case 3��2 Volatility��Correlations��and Currency Risk 3��3 Portfolio Return Performance 3��4 Investability of Emerging Markets 3��5 Segmentation versus Integration Issue Summary Exercises Chapter 5 International Equity Investment The requirement of Learning 1 Market Differences��A Historical Perspective 1��1 Historical Differences in Market Organization 1��2 Historical Differences in Trading Procedure 2 Global Market Statistics 2��1 Market Size 2��2 Liquidity 2��3 Concentration 3 Market Practical Aspects 3��1 Tax Aspects 3��2 Stock Market Indexes 4 Investing in foreign Equity Securities 4��1 Investing the Shares of foreign Listing 4��2 Depository Receipt 4��3 Closed end Country Funds 4��4 An Exchange-Traded Fund(ETF) 5 Analysis Methods 5��1 The information Problem 5��2 A vision of the wodd 5��3 Differences in National Accounting Standards 5��4 The effects of Accounting Principles on Earnings and Stock Prices 6 G10bal Analyses 6��1 Country Analysis 6��2 Industry Analysis 7 Equity Analyses 7��1 Global finan ratio analysis 7��2 Valuation Models 7��3 The effects of inflation on Stock Drices Summary Exercises Chapter 6 International Bond Investment The requirement of Learning 1 The Introduction of Global Bond Market 1��1 The various Segments 1��2 World market size 1��3 Bond Indexes 1��4 The Eurobond Market 1��5 Emerging Markets and Brady Bonds 2 Major Differences among Bond Markets 2��1 Tvpes of Instruments 2��2 Quotations��Day Count��and Frequency of Coupons 3 A Refresher on Bond Valuation 3��1 Zero-Coupon Bonds 3��2 Bond with Coupons 3��3 Duration and Interest Rate Sensitivity 3��4 Credit Spreads 3��5 The return and risk on foreign bond investment 4 Floating Rate Notes and Structured Notes 4��1 Floating-Rate Notes(FRNs) 4��2 Bull FRN 4��3 Bear FRN 4��4 Dual-Currency Bonds 4��5 Curre