Investments serves as a graduate (MBA) textbook designed primarily for courses in investment analysis. The material is organized around a central core of consistent fundamental principles, introducing students to major issues currently relevant to all investors. In an effort to bridge theory and practice, the authors align their approach with the principles of the CFA Institute. This text is consistent with and relevant to the CFA curriculum, featuring a common theme that emphasizes the near-efficiency of security markets—most securities are appropriately priced based on their risk and return attributes. The text also explores several important themes: it highlights the near informational-efficiency of well-developed security markets and the understanding that competitive markets do not provide “free lunches” to participants. A second theme is the risk-return trade-off, while great emphasis is also placed on asset allocation. Additionally, the text provides a comprehensive and in-depth examination of futures, options, and other derivative security markets.