Contemporary Investments : Security and Portfolio Analysis

Professor Douglas Hearth is a member of the finance faculty at the Walton College of Business, University of Arkansas, where he currently serves as director of the personal financial management program. He also served as finance department chair from 1989 to 1996. Prior to that, Dr. Hearth was a faculty member at the University of Colorado. He earned his bachelor's degree at the University of Wisconsin and his Ph.D. at the University of Iowa. Dr. Hearth is the author of numerous academic and professional articles, and has served as a consultant for government and business. He is also the co-author of Contemporary Investments, published by South-Western. Janis K. Zaima is a Professor of Finance at San Jose State University. She obtained her PhD in Finance from University of Washington in Seattle. Her research work in the areas of divestitures and sell-offs, small firm effect, and bond rating changes has been published in Journal of Finance, Financial Management, Journal of Financial Research, Financial Review, and Journal of Business, Finance & Accounting. Recent research interests include topics in corporate metrics such as EVA and the whispers earnings forecast. She is a reviewer for the Journal of Financial Research, Financial Review, The Quarterly Review of Economics and Finance, and the Journal of Economics and Business. She has served on the City of San Jose Investment Finance Committee and has taught in the corporate MBA programs, most recently at Cisco.

PART I. THE WORLD OF INVESTMENTS. 1. Prelude: Investing and Investments. 2. Fundamentals of Risk and Return. 3. Direct Investment Alternatives. 4. Mutual Funds. PART II. FINANCIAL MARKETS AND INVESTMENT RETURNS. 5. Organization of the Financial Markets. 6. Investor Participation in the Financial Markets. 7. Market Efficiency: Concept and Reality. 8. Technical and Fundamental Analysis: How the Pros Make Investment Decisions. PART III. FIXED INCOME SECURITIES. 9. Fixed Income Securities: Valuation and Risks. 10. Managing Bond Portfolios. PART IV. PRINCIPLES OF SECURITY ANALYSIS. 11. Economic and Industry Analysis. 12. Company Analysis: The Historical Record. 13. Company Analysis: Looking Forward. 14. Fundamentals of Common Stock Valuation. PART V. DERIVATIVE SECURITIES. 15. Fundamentals of Options. 16. Futures Contracts. PART VI. MODERN PORTFOLIO THEORY 17. Risk and Diversification. 18. Capital Asset Pricing Theory. 19. Extension of the Capital Asset Pricing Theory. PART VII. INVESTMENT MANAGEMENT. 20. Building and Managing an Investment Portfolio 21. Evaluating Investment Performance. APPENDICES. A. Sources of Investment Information. B. Careers in Investments. C. Answers to Recap Questions.