PART 1  THE INVESTMENT BACKGROUND

  Chapter 1 The Investment Setting

    1.1 What Is an Investment?

    1.2 Measures of Return and Risk

    1.3 Determinants of Required Rates of Return

    1.4 Relationship between Risk and Return

  Chapter 2 The Asset Allocation Decision

    2.1 Individual Investor Life Cycle

    2.2 The Portfolio Management Process

    2.3 The Need For a Policy Statement

    2.4 Input to the Policy Statement

    2.5 The Importance of Asset Allocation

  Chapter 3 Selecting Investments in a Global Market

    3.1 The Case for Global Investments

    3.2 Global Investment Choices

    3.3 Historical Risk-Returns on Alternative Investments

  Chapter 4 Organization and Functioning of Securities Markets

    4.1 What Is a Market?

    4.2 Primary Capital Markets

    4.3 Secondary Financial Markets

    4.4 Detailed Analysis of Exchange Markets

PART 2 DEVELOPMENTS IN INVESTMENT THEORY

  Chapter 5 Efficient Capital Markets

    5.1 Why Should Capital Markets Be Efficient?

    5.2 Alternative Efficient Market Hypotheses

    5.3 Tests and Results of Efficient Market Hypotheses

    5.4 Behavioral Finance

    5.5 Implications of Efficient Capital Markets

  Chapter 6 An Introduction to Portfolio Management

    6.1 Some Background Assumptions

    6.2 Markowitz Portfolio Theory

  Chapter 7 An Introduction to Asset Pricing Models

    7.1 Capital Market Theory: An Overview

    7.2 The Capital Asset Pricing Model

    7.3 Relaxing the Assumptions

    7.4 Additional Empirical Tests of the CAPM

    7.5 The Market Portfolio: Theory Versus Practice

  Chapter 8 Multifactor Models of Risk and Return

    8.1 Arbitrage Pricing Theory

    8.2 Multifactor Models and Risk Estimationee

PART 3 VALUATION PRINCIPLES AND PRACTICES

  Chapter 9 Analysis of Financial Statements

    9.1 Major Financial Statements

    9.2 Analysis of Financial Ratios

    9.3 Computation of Financial Ratios

    9.4 Evaluating Internal Liquidity

    9.5 Evaluating Operating Performance

    9.6 Risk Analysis

    9.7 Analysis of Growth Potential

    9.8 Comparative Analysis of Ratios

    9.9 The Value of Financial Statement Analysis

    9.1o Specific Uses of Financial Ratios

  Chapter lo An Introduction to Security Valuation

    10.1 An Overview of the Valuation Process

    lO.2 Why a Three-Step Valuation Process?

    lO.3 Theory of Valuation

    lO.4 Valuation of Alternative Investments

    lO.5 Relative Valuation Techniques

    lO.6 Estimating the Inputs: The Required Rate of Return and the Expected Growth Rate of Valuation Variablesee

PART 4 ANALYSIS AND MANAGEMENT OF COMMON STOCKS

  Chapter 11 Macroanalysis and Microvaluation of the Stock Market

    11.1 The Components of Market Analysis

    11.2 Macromarket Analysis

    11.3 Microvaluation Analysis

    11.4 Valuation Using the Earnings Multiplier Approach

     11.5 Estimating Expected Earnings per Share

     11.6 Estimating the Stock Market Earnings Multiplier

     11.7 Microvaluation of World Markets

   Chapter 12 Industry Analysis

    12.1 Why Do Industry Analysis?

    12.2 The Business Cycle and Industry Sectors

    12.3 Structural Economic Changes and Alternative Industries

    12.4 Evaluating the Industry Life Cycle

    12.5 Analysis of Industry Competition

    12.6 Estimating Industry Rates of Return

    12.7 Industry Analysis Using the Relative Valuation Approach

    12.8 Other Relative Valuation Ratios

    12.9 Global Industry Analysis

  Chapter 13 Company Analysis and Stock Valuation

    13.1 Company Analysis versus Stock Valuation

    13.2 Economic, Industry, and Structural Links to Company Analysis

    13.3 Company Analysis

    13.4 Estimating Intrinsic Value

    13.5 Analysis of Growth Companies

    13.6 Measures of Value Added

    13.7 Influences on Analysis

    13.8 Global Company and Stock Analysis

  Chapter 14 Technical Analysis

    14.1 Underlying Assumptions of Technical Analysis

    14.2 Advantages of Technical Ana