Based on user feedback, we have made numerous improvements and refinements in the seventh edition of Fundamentals of Investments: Valuation and Management. We updated an appendix containing useful formulas. We updated every chapter to reflect current market practices and conditions, and we significantly expanded and improved the end-of-chapter material. Also, our chapters devoted to market efficiency and to behavioral finance continue to rate highly among readers.

PART I: INTRODUCTION

Ch1 A Brief History of Risk and Return

Ch2 The Investment Process

Ch3 Overview of Security Types

Ch4 Mutual Funds and Other Investment Companies



PART II: STOCK MARKETS

Ch5 The Stock Market

Ch6 Common Stock Valuation

Ch7 Stock Price Behavior and Market Efficiency

Ch8 Behavioral Finance and the Psychology of Investing



PART III: INTEREST RATES AND BOND VALUATION

Ch9 Interest Rates

Ch10 Bond Prices and Yields



PART IV: PORTFOLIO MANAGEMENT

Ch11 Diversification and Risky Asset Allocation

Ch12 Return, Risk, and the Security Market Line

Ch13 Performance Evaluation and Risk Management



PART V: FUTURES AND OPTIONS

Ch14 Futures Contracts

Ch15 Stock Options



PART VI: TOPICS IN INVESTMENTS

Ch16 Option Valuation

Ch17 Projecting Cash Flow and Earnings

Ch18 Corporate and Government Bonds

Ch19 Global Economic Activity and Industry Analysis

Ch20 Mortgage-Backed Securities (Web site only)