Investment success requires both breadth and depth of knowledge of markets, industries, companies, and securities. Investment profes-sionals must possess a broad understanding of the financial markets to be able to judge opportunities and risks. They must also have the ability to evaluate in detail industries and individual companies to make sound judgments about individual holdings. As part of the CFA Institute Investment Series, Investments: Principles of Portfolio and Equity Analysis has been specifically designed to provide you with the knowledge you need to effectively and efficiently manage portfolios in today's volatile markets and uncertain global economy.
With Investments: Principles of Portfolio and Equity Analysis, a distinguished team of senior investment professionals and leading business school authorities provides you with complete coverage of the most important issues in this field.
Written with both the established and aspiring financial analyst in mind, this book will help you understand the mechanics of professional money management, including:
Portfolio management
Portfolio planning and construction
Portfolio risk and return
Equity security analysis and valuation
Along the way, you will also become familiar with market organization and structure, security market indices, market efficiency, the types of equity securities, industry and company analysis, technical analysis, and a range of equity valuation techniques.
And to enhance your understanding of the tools and techniques presented here, don’t forget to pick up the Investments Workbook: Principles of Portfolio and Equity Analysis. This companion guide contains carefully constructed problems with detailed solutions as well as concise learning outcome statements and summary chapter overviews.
Straightforward and accessible, Investments: Principles of Portfolio and Equity Analysis provides you with in-depth insights and expert advice on investment analysis and portfolio management, and the practical guide does so with a continuity of coverage that is critical to the learning process.

Table of Contents:

Chapter 1 Market Organization and Structure.
Learning Outcomes.
1 Introduction.
2 The Functions of the Financial System.
3 Assets and Contracts.
4 Financial Intermediaries.
5 Positions.
6 Orders.
7 Primary Security Markets.
8 Secondary Security Market and Contract Market Structures.
9 Well-Functioning Financial Systems.
Problems.
Chapter 2 Security Market Indices.
Learning Outcomes.
1 Introduction.
2 Index Definition and Calculations of Value and Returns.
3 Index Construction and Management.
4 Uses of Market Indices.
5 Equity Indices.
6 Fixed-Income Indices.
7 Indices for Alternative Investments.
Chapter 3 Market Efficiency.
Learning Outcomes.
1 Introduction.
2 The Concept of Market Efficiency.
3 Forms of Market Efficiency.
4 Market Pricing Anomalies.
5 Behavioral Finance.
Chapter 4 Portfolio Management: An Overview.
Learning Outcomes.
1 Introduction.
2 A Portfolio Perspective on Investing.
3 Investment Clients.
4 Steps in the Portfolio Management Process.
5 Pooled Investments.
Chapter 5 Portfolio Risk and Return: Part I.
Learning Outcomes.
1 Introduction.
2 Investment Characteristics of Assets.
3 Risk Aversion and Portfolio Selection.
4 Portfolio Risk.
5 Efficient Frontier and Investor’s Optimal Portfolio.
Chapter 6 Portfolio Risk and Return: Part II.
Learning Outcomes.
1 Introduction.
2 Capital Market Theory.
3 Pricing of Risk and Computation of Expected Return.
4 The Capital Asset Pricing Model.
5 Beyond the Capital Asset Pricing Model.
Chapter 7 Basics of Portfolio Planning and Construction.
Learning Outcomes.
1 Introduction.
2 Portfolio Planning.
3 Portfolio Construction.
Chapter 8 Overview of Equity Securities.
Learning Outcomes.
1 Introduction.
2 Equity Securities in Global Financial Markets.
3 Types and Characteristics of Equity Securities.
4 Private versus Public Equity Securities.
5 Investing in Non-Domestic Equity Securities.
6 Risk and Return Characteristics of Equity Securities.
7 Equity Securities and Company Value.
Chapter 9 Introduction to Industry and Company Analysis.
Learning Outcomes.
1 Introduction.
2 Uses of Industry Analysis.
3 Approaches to Identifying Similar Companies.
4 Industry Classification Systems.
5 Describing and Analyzing an Industry.
6 Company Analysis.
Chapter 10 Equity Valuation: Concepts and Basic Tools.
Learning Outcomes.
1 Introduction.
2 Estimated Value and Market Price.
3 Major Categories of Equity Valuation Models.
4 Present Value Models: The Dividend Discount Model.
5 Multiplier Models.
6 Asset-Based Valuation.
Chapter 11 Equity Market Valuation.
Learning Outcomes.
1 Introduction.
2 Estimating a Justified P/E Ratio.
3 Top-down and Bottom-up Forecasting.
4 Relative Value Models.
Chapter 12 Technical Analysis.
Learning Outcomes.
1 Introduction.
2 Technical Analysis: Definition and Scope.
3 Technical Analysis Tools.
4 Elliott Wave Theory.
5 Intermarket Analysis.
About the CFA Program.