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
Zvi Bodie is Professor Emeritus at Boston University, where he taught from 1973 to 2016. Today, he is an independent financial consultant and educator. His main professional interest is to firmly establish finance as an applied science built on the principles explained in his books and websites. He holds a Ph.D. from the Massachusetts Institute of Technology and has served on the finance faculty at the Harvard Business School and MIT's Sloan School of Management. His textbook Financial Economics coauthored by Nobel-Prize winning economist Robert C. Merton has been translated into 9 languages. In addition to his textbooks, Bodie has coauthored two books for the mass market: Risk Less and Prosper: Your Guide to Safer Investing and Worry-Free Investing A Safe Approach to Achieving Your Lifetime Financial Goals. In 2007, the Retirement Income Industry Association gave him its Lifetime Achievement Award for applied research. He has authored and edited many books and articles on pensions and investing for retirement. With the support of the Research Foundation of the CFA Institute, he organized a series of 3 conferences on the theory and practice of life-cycle finance. Currently he serves as senior advisor to the Investments and Wealth Institute and consults for a number of financial firms including Dimensional Fund Advisors.
Professor of finance and economics at the Graduate School of International Relations and Pacific Studies at the University of California, San Diego. He has been visiting professor at the Faculty of Economics, University of Tokyo; Graduate School of Business, Harvard; Kennedy School of Government, Harvard; and research associate, National Bureau of Economic Research. An author of many articles in finance and management journals, Professor Kanes research is mainly in corporate finance, portfolio management, and capital markets, most recently in the measurement of market volatility and pricing of options.
Alan J. Marcus is a Professor of Finance in the Wallace E. Carroll School of Management at Boston College. His main research interests are in derivatives and securities markets. He is co-author (with Zvi Bodie and Alex Kane) of the texts Investments and Essentials of Investments. Professor Marcus has served as a research fellow at the National Bureau of Economic Research. Professor Marcus also spent two years at Freddie Mac, where he helped to develop mortgage pricing and credit risk models. He currently serves on the Research Foundation Advisory Board of the CFA Institute.