Javier Estrada holds an M.S. in Finance and a Ph.D. in Economics both from the University of Illinois at Urbana-Champaign. He is currently an associate professor at the IESE Business School in Barcelona, Spain; the co-editor of the Emerging Markets Review; and a wealth management advisor at Sports Global Consulting. He has published extensively in international journals, written many cases for class discussion, and lectured throughout the world.

‘This delivers the essential concepts of modern finance clearly and concisely. My advice: buy this book and keep it close at hand!' Mark Kritzman, President and CIO, Windham Capital Management, LLC ‘Whilst there are a number of books that purport to offer a quick reference for business professionals, this is the only one that really manages to do this in an effective way.' Valerio Potì, Director of the MSc in Finance and Capital Markets Program, Dublin City University Business School  ‘This is corporate finance served in bite-sized and digestible portions.' Elroy Dimson, Emeritus Professor of Finance, London Business School ‘Javier Estrada is to be commended for translating deep economic ideas into terms that are immediately usable, compelling and valuable.'  Robert F. Bruner, Dean of Darden Business School, University of Virginia

• Publisher's acknowledgments Preface to the second edition  Preface to the first edition                                                                                                                        PART I: RISK AND RETURN                                                                                    1          Returns (I): Basic concepts                                                                                   2          Returns (II): Mean returns                                                                                   3          Risk (I): Total risk                                                                                               4          Risk and return (I): Portfolios                                                                               5          Risk (II): Diversification                        &