Solution manual for Fundamentals of Investing, 14th Edition by Scott B. Smart

Robert Hartwig Worcester State University for Fundamentals of Investing Fourteenth Edition Scott B. Smart Chad J. Zutter University of Pittsburgh Copyright © 2020 Pearson Education, Inc. Director, Higher Education Product Management—Business & Economics: Adrienne D’Ambrosio Editorial Assistant: Catherine Cinque Managing Producer: Alison Kalil Senior Content Producer: Meredith Gertz Copyright © 2020, 2017, 2014 by Pearson Education. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. For information regarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights and Permissions department, please visit ISBN-13: 978-0-13-489778-3 ISBN-10: 0-13-489778-1 Contents Chapter 1 The Investment Environment 1 Chapter 2 Securities Markets and Transactions 16 Chapter 3 Investment Information and Securities Transactions 34 Chapter 4 Return and Risk 50 iv Contents Chapter 5 Modern Portfolio Concepts 76 Chapter 6 Common Stocks 103 Chapter 7 Analyzing Common Stocks 120 Chapter 8 Stock Valuation 145 Chapter 9 Market Efficiency and Behavioral Finance 162 Chapter 10 Fixed-Income Securities 182 Chapter 11 Bond Valuation 201 Chapter 12 Mutual Funds and Exchange-Traded Funds 227 Chapter 13 Managing Your Own Portfolio 246 Chapter 14 Options: Puts and Calls 266 Chapter 15 Futures Markets and Securities 287 Web Chapter 16 Investing in Preferred Stock 299 Web Chapter 17 Tax-Advantaged Investments 307 Web Chapter 18 Real Estate and Other Tangible Investments 322 © 2020 Pearson Education, Inc. Chapter 1 The Investment Environmen