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Part I Introduction

1 A Brief History of Risk and Return

2 The Investment Process

3 Overview of Security Types

4 Mutual Funds and Other Investment Companies

Part II Stock Markets

5 The Stock Market

6 Common Stock Valuation

7 Stock Price Behavior and Market Efficiency

8 Behavioral Finance and the Psychology of Investing

Part III Interest Rates and Bond Valuation

9 Interest Rates

10 Bond Prices and Yields

Part IV Portfolio

11 Diversification and Risky Asset Allocation

12 Return, Risk, and the Security Market Line

13 Performance Evaluation and Risk Management

Part V Options and Futures

14 Futures Contracts

15 Stock Options

Part VI Topics in Investments

16 Option Valuation

17 Projecting Cash Flow and Earnings

18 Corporate and Government Bonds

19 Global Economic Activity and Industry Analysis

20 Mortgage-Backed Securities (web site only)

Appendix A: Answers to Test Your Investment Quotient Questions

Appendix B: Answers to Selected Questions and Problems

Appendix C: Key Equations

Index