Investments sets the standard as a graduate (MBA) text intended primarily for courses in
investment analysis. The guiding principle has been to present the material in a framework that
is organized by a central core of consistent fundamental principles and will introduce students
to major issues currently of concern to all investors. In an effort to link theory to practice
the authors make their approach consistent with that of the CFA Institute. Many features of
this text make it consistent with and relevant to the CFA curriculum. The common unifying theme
is that security markets are nearly efficient meaning that most securities are priced
appropriately given their risk and return attributes. Investments is also organized around
several important themes: The central theme is the near-informational-efficiency of
well-developed security markets and the general awareness that competitive markets do not offer
free lunches to participants. A second theme is the risk-return trade-off. Also this text
places great emphasis on asset allocation. Finally this text offers a broad and deep treatment
of futures options and other derivative security markets.
