Investments sets the standard as a graduate (MBA) text intended primarily for courses in investment analysis. The guiding principle has been to present the material in a framework that is organized by a central core of consistent fundamental principles and will introduce students to major issues currently of concern to all investors. In an effort to link theory to practice, the authors make their approach consistent with that of the CFA Institute. Many features of this text make it consistent with and relevant to the CFA curriculum.The common unifying theme is that security markets are nearly efficient, meaning that most securities are priced appropriately given their risk and return attributes. Investments is also organized 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 1: IntroductionCh. 1 The Investment EnvironmentCh. 2 Asset Classes and Financial InstrumentsCh. 3 How Securities Are TradedCh. 4 Mutual Funds and Other Investment CompaniesPART 2: Portfolio Theory and PracticeCh. 5 Risk, Return, and the Historical RecordCh. 6 Capital Allocation to Risky AssetsCh. 7 Efficient DiversificationCh. 8 Index ModelsPART 3: Equilibrium in Capital MarketsCh. 9 The Capital Asset Pricing ModelCh. 10 Arbitrage Pricing Theory and Multifactor Models of Risk and ReturnCh. 11 The Efficient Market HypothesisCh. 12 Behavioral Finance and Technical AnalysisCh. 13 Empirical Evidence on Security ReturnsPART 4: Fixed-Income SecuritiesCh. 14 Bond Prices and YieldsCh. 15 The Term Structure of Interest RatesCh. 16 Managing Bond PortfoliosPART 5: Security AnalysisCh. 17 Macroeconomic and Industry AnalysisCh. 18 Equity Valuation ModelsCh. 19 Financial Statement AnalysisPART 6: Options, Futures, and Other DerivativesCh. 20 Options Markets: IntroductionCh. 21 Option ValuationCh. 22 Futures MarketsCh. 23 Futures, Swaps, and Risk ManagementPART 7: Applied Portfolio ManagementCh. 24 Portfolio Performance EvaluationCh. 25 International DiversificationCh. 26 Hedge FundsCh. 27 The Theory of Active Portfolio ManagementCh. 28 Investment Policy and the Framework of the CFA Institute