Investments

Investments set the standardas a graduate (MBA) text intended primarily for courses in investment analysis. The guiding principle has been to present the material in a framework that isorganized by a central core of consistent fundamental principles and will introducestudents to major issues currently of concern to all investors. In an effort to link theory to practice, the authorsmake their approach consistent with that of the CFA Institute. Many features ofthis text make it consistent with and relevant to the CFA curriculum.


The common unifying theme is that securitymarkets are nearly efficient, meaning that most securities are priced appropriately given their risk and return attributes. Investments is alsoorganized around several important themes: The central theme is the near informational-efficiency of well-developed security markets and the general awareness that competitive markets do not offer "free lunches" to participants. A second theme is the risk-return trade-off. Also, this text places great emphasis on asset allocation. Finally, this text offers a broad and deep treatment of futures, options, and other derivative security markets.

PART I: IntroductionChapter 1: The Investment EnvironmentChapter 2: Asset Classes and Financial InstrumentsChapter 3: How Securities Are TradedChapter 4: Mutual Funds and Other InvestmentCompanies
PART II: Portfolio Theory and PracticeChapter 5: Risk, Return, and the HistoricalRecordChapter 6: Capital Allocation to Risky AssetsChapter 7: Efficient DiversificationChapter 8: Index Models
PART III: Equilibrium in Capital MarketsChapter 9: The Capital Asset Pricing ModelChapter 10: Arbitrage Pricing Theory andMultifactor Models of Risk and ReturnChapter 11: The Efficient Market HypothesisChapter 12: Behavioral Finance and TechnicalAnalysisChapter 13: Empirical Evidence on SecurityReturns
PART IV: Fixed-Income SecuritiesChapter 14: Bond Prices and YieldsChapter 15: The Term Structure of Interest RatesChapter 16: Managing Bond Portfolios
PART V: Security AnalysisChapter 17: Macroeconomic and Industry AnalysisChapter 18: Equity Valuation ModelsChapter 19: Financial Statement AnalysisPART VI: Options, Futures, and Other DerivativesChapter 20: Options Markets: IntroductionChapter 21: Option ValuationChapter 22: Futures MarketsChapter 23: Futures, Swaps, and Risk ManagementPART VII: Applied Portfolio ManagementChapter 24: Portfolio Performance EvaluationChapter 25: International DiversificationChapter 26: Alternative AssetsChapter 27: The Theory of Active PortfolioManagementChapter 28: Investment Policy and the Frameworkof the CFA Institute

REFERENCES TO CFA PROBLEMS

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