Bodie, Kane, and Marcus' "Investments and Portfolio Management" sets the standard for graduate/MBA investments textbooks. It blends practical and theoretical coverage, while maintaining an appropriate rigor and a clear writing style. Its unifying theme is that security markets are nearly efficient, meaning that most securities are priced appropriately given their risk and return attributes. The text places greater emphasis on asset allocation and offers a much broader and deeper treatment of futures, options, and other derivative security markets than most investment texts. It is also the only graduate "Investments" text to offer an online homework management system, McGraw-Hill's "Connect Plus Finance".

Part I. Introduction Chapter 1. The Investment Environment Chapter 2. Asset Classes and Financial Instruments Chapter 3. How Securities are Traded Chapter 4.Mutual Funds and Other Investment Companies Part II. Portfolio Theory and Practice Chapter 5. Introduction to Risk, Return, and the Historical Record ] Chapter 6. Risk Aversion and Capital Allocation to Risky Assets Chapter 7. Optimal Risky Portfolios Chapter 8. Index Models Part III. Equilibrium in Capital Markets Chapter 9. The Capital Asset Pricing Model Chapter 10. Arbitrage Pricing Theory and Multifactor Models of Risk and Return Chapter 11. The Efficient Market Chapter 12. Behavioral Finance and Technical Analysis Chapter 13. Empirical Evidence on Security Returns Part IV. Fixed-Income Securities Chapter 14. Bond Prices and Yields Chapter 15. The Term Structure of Interest Rates Chapter 16. Managing Bond Portfolios Part V. Options, Futures, and Other Derivatives Chapter 17. Options Markets: Introduction Chapter 18. Option Valuation Chapter 19. Futures Markets Chapter 20. Futures, Swaps, and Risk Management Part VI. Security Analysis Chapter 21. Macroeconomic and Industry Analysis Chapter 22. Equity Valuation Models Chapter 23. Financial Statement Analysis Part VII. Applied Portfolio Management Chapter 24. Portfolio Performance Evaluation Chapter 25. International Diversification Chapter 26. Hedge Funds Chapter 27. The Theory of Active Portfolio Management Chapter 28. Investment Policy and the Framework of the CFA Institute References to CFA Problems