New Features:

McGraw-Hill’s Connect Finance. Connect Finance offers a number of powerful tools and features to make managing assignments easier, so you can spend more time teaching. Students can engage with their coursework anytime and anywhere, making the learning process more accessible and efficient. In short, Connect Finance facilitates student learning and optimizes your time and energies, enabling you to focus on course content, teaching, and student learning.

• Create and deliver online, auto-graded homework assignments, quizzes, and tests directly from the end-of-chapter materials or test bank. Selected problems are available as both static and algorithmic problems.
• Students receive immediate, detailed feedback on their assignments, allowing them to focus on the areas where they need improvement.
• Questions mapped to AACSB skill areas, Bloom’s Taxonomy levels, and difficulty level enable you to run reports that assess specific learning outcomes.

The first part of the book has been significantly revised to reflect the recent financial crisis. Updates include:

• A new section on the 2008 financial crash, its causes, timeline, and systemic risk in Chapter 1.
• New discussions on short selling, tail risk and extreme events, and possible security price bubbles throughout the first half of the text.

Retained Features:

Strong treatment of Excel. Selected chapters contain problems, denoted by an icon, specifically linked to Excel templates that are available on the book website at www.mheducation.asia/olc/bodie. In addition, Excel spreadsheets with Excel Application boxes and exhibits give students tools to explore concepts more deeply. These spreadsheets are also available on the book’s web site and provide a taste of the sophisticated analytic tools available to professional investors.

The authors continue to present material in a framework that is organized by a central core of consistent fundamental principles. As such, they have stripped away unnecessary mathematical and technical detail to concentrate on providing the intuition to guide students and practitioners in their professional lives.

Considerable attention is paid to Modern Portfolio Theory, which focuses on the techniques and implications of efficient diversification for the proper measurement of risk and the risk-return relationship.

The text provides complete coverage of futures, options and other derivative security markets, acknowledging the importance of these markets to finance professionals and individual investors.

Every chapter includes pedagogical features to help students understand, absorb and apply the concepts and techniques presented. These features include a chapter opening vignette, numbered examples, key terms presented in boldface type with a listing at the end of each chapter and a glossary, and a chapter summary. Concept Checks are included in the body of the text to help students reinforce and check their understanding of key concepts (solutions to concept checks are found at the end of each chapter).