This market-leading textbook on investment analysis presents the practical applications of investment theory, conveying insights of great practical value. The authors have eliminated unnecessary mathematical detail and concentrate on the intuition and insights that will be useful to practitioners throughout their careers, as new ideas and challenges emerge from the financial marketplace. The book maintains the theme of asset allocation (authors discuss asset pricing and trading, then apply these theories to portfolio planning in real-world securities markets that are governed by risk/return relationships). The major objective in this revision is to maintain the current level in content and coverage, with greater emphasis on the Internet and global issues, and to improve the text's accessibility by enhancing presentation, pedagogy and design. - Internet exercises are included in every chapter to help students practise and understand how to work with investment topics on the web. - S&P Market Insight Problems are included in end of chapter questions. These problems require the use of the Educational Version of Market Insight, taking advantage of Standard & Poor's powerful and well-known Compustat database. - Additional international coverage has been integrated throughout the text to help students understand the importance and relevance of today's global economy.