PART ONE Introduction 1
1 A Brief History of Risk and Return 1
2 Buying and Selling Securities 40
3 SecurityTypes 79
4 Mutual Funds 107
PART TWO Stock Markets 144
5 The Stock Market 144
6 Common Stock Valuation 176
7 Earnings and Cash Flow Analysis 219
8 Stock Price Behavior and Market Efficiency 250
PART THREE Interest Rates and Bond Valuation 286
9 Interest Rates 286
10 Bond Prices and Yields 323
PART FOUR Portfolio 361
11 Diversification and Asset Allocation 361
12 Return,Risk,and the Security Market Line 394
13 Performance Evaluation and Risk Management 429
PART FIVE Options and Futures 452
14 Stock Options 452
15 Option Valuation 489
16 Futures Contracts 521
Appendixes 659
A Answers to Test Your Investment Quotient Questions 659
B Answers to Selected Questions and Problems 663
Index 667