Ch 2 · Security Analysis & Portfolio Management

📘 Core concepts

1. 1Fundamental analysis: EIC framework (Economy → Industry → Company).
2. 2Technical analysis: charts, trends, momentum indicators, support/resistance.
3. 3EMH: weak (past prices reflected), semi-strong (public info), strong (all info incl. insider).
4. 4Markowitz portfolio theory: diversification reduces unsystematic risk.
5. 5CAPM: only systematic risk (β) priced; SML: E(Ri) = Rf + βi(Rm − Rf).