Dr. Gerald Jensen served for many years as a faculty member at Creighton University and Northern Illinois University (NIU). Dr. Jensen was a Board of Trustees Professor and held the Jones, Diedrich, Mennie Endowed Professorship at NIU. He is a Chartered Financial Analyst and was actively involved with the CFA Institute as a volunteer and a consultant. His research focuses on Federal Reserve policy and security returns. He has published more than 60 articles in journals such as Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Financial Analysts Journal, and Journal of Portfolio Management. Dr. Tyler Jensen is an Associate Professor of Finance at the Ivy College of Business, Iowa State University. He received his PhD from the University of Utah in 2014 and joined the faculty of Iowa State the same year. His research interests include cash holdings, asset pricing, funding conditions, and earnings forecasts. He has been published in the Journal of Financial and Quantitative Analysis, Accounting Review, Journal of Corporate Finance, and Journal of Banking and Finance.

• Part 1 Background1 Understanding Investments 12 Investment Alternatives 233 Indirect Investing 544 Securities Markets and Market Indexes 855 How Securities Are Traded 108Part 2 Portfolio and Capital Market Theory6 The Risk and Return from Investing 1327 Portfolio Theory 1618 Portfolio Selection and Asset Allocation 1859 Capital Market Theory and Asset Pricing Models 210Part 3 Common Stocks: Analysis, Valuation, and Management10 Common Stock Valuation 24011 Common Stocks: Analysis and Strategy 27512 Market Efficiency 295Part 4 Security Analysis13 Economy/Market Analysis 32514 Sector/Industry Analysis 34815 Company Analysis 36716 Technical Analysis 398Part 5 Fixed-Income Securities: Analysis, Valuation, and Management17 Bond Yields and Prices 41918 Bonds: Analysis and Strategy 445Part 6 Derivative Securities19 Options 47120 Futures Contracts 503Part 7 Investment Management21 Managing Your Financial Assets 52722 Evaluating Investment Performance 547Glossary G-1Index I-1

Dr. Gerald Jensen served for many years as a faculty member at Creighton University and Northern Illinois University (NIU). Dr. Jensen was a Board of Trustees Professor and held the Jones, Diedrich, Mennie Endowed Professorship at NIU. He is a Chartered Financial Analyst and was actively involved with the CFA Institute as a volunteer and a consultant. His research focuses on Federal Reserve policy and security returns. He has published more than 60 articles in journals such as Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Financial Analysts Journal, and Journal of Portfolio Management. Dr. Tyler Jensen is an Associate Professor of Finance at the Ivy College of Business, Iowa State University. He received his PhD from the University of Utah in 2014 and joined the faculty of Iowa State the same year. His research interests include cash holdings, asset pricing, funding conditions, and earnings forecasts. He has been published in the Journal of Financial and Quantitative Analysis, Accounting Review, Journal of Corporate Finance, and Journal of Banking and Finance.

• Part 1 Background1 Understanding Investments 12 Investment Alternatives 233 Indirect Investing 544 Securities Markets and Market Indexes 855 How Securities Are Traded 108Part 2 Portfolio and Capital Market Theory6 The Risk and Return from Investing 1327 Portfolio Theory 1618 Portfolio Selection and Asset Allocation 1859 Capital Market Theory and Asset Pricing Models 210Part 3 Common Stocks: Analysis, Valuation, and Management10 Common Stock Valuation 24011 Common Stocks: Analysis and Strategy 27512 Market Efficiency 295Part 4 Security Analysis13 Economy/Market Analysis 32514 Sector/Industry Analysis 34815 Company Analysis 36716 Technical Analysis 398Part 5 Fixed-Income Securities: Analysis, Valuation, and Management17 Bond Yields and Prices 41918 Bonds: Analysis and Strategy 445Part 6 Derivative Securities19 Options 47120 Futures Contracts 503Part 7 Investment Management21 Managing Your Financial Assets 52722 Evaluating Investment Performance 547Glossary G-1Index I-1