Contents: The Investment environment -- Markets and instruments -- How securities are traded -- Mutual funds and other investment companies -- History of interest rates and risk premiums -- Risk and risk aversion -- Capital allocation between the risky asset and the risk-free asset -- Optimal risky portfolios -- The Capital asset pricing model -- Single-index and multifactor models -- Arbitrage pricing model -- Single-index and mutifactor models -- Arbitrage pricing theory -- Market efficiency -- Empirical evidence on security returns -- Bond prices and yields -- The Term structure of interest rates -- Fixed income portfolio management -- Macroeconomic and industry analysis -- Equity valuation models -- Financial statement analysis -- Options markets: introduction -- Option valuation -- Futures markets -- Future markets: a closer look -- Performance evaluation -- International diversification -- Managing client portfolios -- The Theory of active portfolio management.