Investments: 2026 Release ISE

Part I: Introduction
1. The Investment Environment
2. Asset Classes and Financial Instruments
3. How Securities Are Traded
4. Mutual Funds and Other Investment Companies


Part II: Portfolio Theory and Practice
5. Risk, Return, and the Historical Record
6. Capital Allocation to Risky Assets
7. Efficient Diversification
8. Index Models


Part III: Equilibrium in Capital Markets
9. The Capital Asset Pricing Model
10. Arbitrage Pricing Theory and Multifactor Models of Risk and Return
11. The Efficient Market Hypothesis
12. Behavioral Finance and Technical Analysis
13. Empirical Evidence on Security Returns


Part IV: Fixed-Income Securities
14. Bond Prices and Yields
15. The Term Structure of Interest Rates
16. Managing Bond Portfolios


Part V: Security Analysis
17. Macroeconomic and Industry Analysis
18. Equity Valuation Models
19. Financial Statement Analysis


Part VI: Options, Futures, and Other Derivatives
20. Options Markets: Introduction
21. Option Valuation
22. Futures Markets
23. Futures, Swaps, and Risk Management


Part VII: Applied Portfolio Management
24. Portfolio Performance Evaluation
25. International Diversification
26. Alternative Assets
27. The Theory of Active Portfolio Management
28. Investment Policy and the Framework of the CFA Institute


References to CFA Problems

Investments serves as a graduate (MBA) text designed primarily for investment analysis courses. It presents material through a framework rooted in fundamental principles, addressing key issues relevant to investors. Aligning with the CFA Institute, the authors ensure the text complements the CFA curriculum. The central theme is the near-efficiency of security markets, emphasizing that most securities are priced correctly based on their risk and return, while highlighting that competitive markets do not provide 'free lunches' to participants. A second theme explores the risk-return trade-off, while also emphasizing asset allocation and providing an in-depth look at futures, options, and derivatives.