The market leader, ESSENTIALS OF INVESTMENTS, 4/E is an undergraduate textbook on investment analysis. The authors have eliminated unnecessary mathematical detail and concentrated on the intuition and insights that will be useful to practitioners throughout their careers as new ideas and challenges emerge from the financial marketplace. ESSENTIALS maintains the theme of asset allocation (authors discuss asset pricing and trading then apply these theories to portfolio planning in real-world securities markets that are governed by risk/return relationships). ESSENTIALS also continues to develop modern topics. The major objective in this revision is to maintain the current level in content and coverage, but work on improving the text?s accessibility by enhancing presentation, pedagogy, and design.

Part One: Elements of Investments 1. Investments: Backgrounds and Issues 2. Financial Markets and Instruments 3. How Securities are Traded 4. Mutual Funds and Other Investment Companies 5. Investors and the Investments Process Part Two: Portfolio Theory 6. Risk and Return: Past and Prologue 7. Efficient Diversification 8. Capital Asset Pricing and Arbitrage Pricing Theory 9. The Efficient Market Hypothesis Part Three: Fixed-Income Securities 10. Bond Prices and Yields 11. Managing Fixed-Income Investments Part Four: Security Analysis 12. Macroeconomic and Industry Analysis 13. Equity Valuation 14. Financial Statement Analysis 15. Technical Analysis Part Five: Derivative Assets: Options and Futures 16. Options Markets 17. Option Valuation 18. Futures Markets Part Six: Active Investment Management 19. Performance Evaluation and Active Portfolio Management (new title to come) 20. International Diversification