Table of Contents:

Part 1: Introduction

1. The Investment Environment

2. Markets and Instruments

3. How Securities are Traded

4. Mutual Funds and Other Investment Companies

5. History of Interest Rates and Risk Premiums

Part 2: Portfolio Theory

6. Risk and Risk Aversion

7. Capital Allocation Between the Risky Asset and the Risk-Free Asset

8. Optimal Risky Portfolios

Part 3: Equilibrium in Capital Markets

9. The Capital Asset Pricing Model

10. Single-Index and Multifactor Models

11. Arbitrage Pricing Theory

12. Market Efficiency

13. Empirical Evidence on Security Returns

Part 4: Fixed-Income Securities

14. Bond Prices and Yields

15. The Term Structure of Interest Rates

16. Fixed-Income Portfolio Management

Part 5: Security Analysis

17. Macroeconomic and Industry Analysis

18. Equity Valuation Models

19. Financial Statement Analysis

Part 6: Options, Futures, and Other Derivatives

20. Options Markets: Introduction

21. Option Valuation

22. Futures Markets

23. Futures and Swaps: A Closer Look

Part 7: Applied Portfolio Management

24. Portfolio Performance Evaluation

25. International Diversification

26. The Process of Portfolio Management

27. The Theory of Active Portfolio Management

Appendix A. Quantitative Review

Appendix B. CFA Citations