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We are pleased to present this Global Edition, which has been developed specifically to meet the needs of internationalInvestment students. A market leader in the field, this text introduces major issues of concern to all investors and placesemphasis on asset allocation. It gives students the skills to conduct a sophisticated assessment of watershed current issuesand debates. Bodie Investments´ blend of practical and theoretical coverage combines with a complete digital solution tohelp your students achieve higher outcomes in the course.

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Part I Introduction

Chapter: 1 The Investment Environment

Chapter: 2 Asset Classes and Financial Instruments

Chapter: 3 How Securities are Traded

Chapter: 4 Mutual Funds and Other Investment Companies

Part II Portfolio Theory and Practice

Chapter: 5 Risk, Return, and the Historical Record

Chapter: 6 Capital Allocation to Risky Assets

Chapter: 7 Optimal Risky Portfolios

Chapter: 8 Index Models

Part III Equilibrium in Capital Markets

Chapter: 9 The Capital Asset Pricing Model

Chapter: 10 Arbitrage Pricing Theory and Multifactor Models of Risk and Return

Chapter: 11 The Efficient Market Hypothesis

Chapter: 12 Behavioral Finance and Technical Analysis

Chapter: 13 Empirical Evidence on Security Returns

Part IV Fixed-Income Securities

Chapter: 14 Bond Prices and Yields

Chapter: 15 The Term Structure of Interest Rates

Chapter: 16 Managing Bond Portfolios

Part V Security Analysis

Chapter: 17 Macroeconomic and Industry Analysis

Chapter: 18 Equity Valuation Models

Chapter: 19 Financial Statement Analysis

Part VI Options, Futures, and Other Derivatives

Chapter: 20 Options Markets: Introduction

Chapter: 21 Option Valuation

Chapter: 22 Futures Markets

Chapter: 23 Futures, Swaps, and Risk Management

Part VII Applied Portfolio Management

Chapter: 24 Portfolio Performance Evaluation

Chapter: 25 International Diversification

Chapter: 26 Hedge Funds

Chapter: 27 The Theory of Active Portfolio Management

Chapter: 28 Investment Policy and the Framework of the CFA Institute

References to CFA Problems

Glossary

Name Index

Subject Index

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Professor of finance and economics at Boston University School of Management. He holds a Ph.D. from the Massachusetts Institute of Technology and has served on the finance faculty at Harvard Business School and MIT´s Sloan School of Management. Professor Bodie has published widely on pension finance and investment strategy in leading professional journals. His books include Worry-Free Investing: A safe Approach to Achieving your Lifetime Financial Goals and Foundations of Pension Finance. Professor Bodie is managing director of Integrated Finance Limited, a specialized investment bank and financial engineering company. He is also a member of the Advisory Board of the Pension Research Council.

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 Kane´s research is mainly in corporate finance, portfolio management, and capital markets, most recently in the measurement of market volatility and pricing of options.

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.

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