Further extended the systematic collection of Excel spreadsheets that give students tools to explore concepts more deeply. These spreadsheets are available on the book's web site at www.mhhe.com/bkm. For instance, Chapter 16 (The Process of Portfolio Management) has a new appendix containing an extensive spreadsheet model for sophisticated financial planning. The spreadsheets for this chapter allow students to study the interaction of taxes and inflation on long-term financial strategies.

Includes new end of chapter questions that require the use of Standard & Poor's Educational Version of Market Insight. Access to this online resource is free with each new copy of the book. The site contains quantitative and qualitative data on over 500 top companies; it is powered by S&P's renowned COMPUSTAT® database.

Expanded Internet Exercises called E-Investments now appear in every chapter. These exercises were created to provide students with a structured set of steps to investigate financial data on the Internet. Easy-to-follow instructions and questions are presented so students can use what they've learned.

Chapter 11 (Arbitrage Pricing Theory and Multifactor Models of Risk and Return) has been largely rewritten. There is a greater focus on the use of factor models as a means to understand and measure various risk exposures. The intuition for multifactor risk-return relation is enhanced, and the comparison between the multifactor APT and CAPM is further developed.

The treatment of behavioral finance (Ch. 12 Market Efficiency and Behavioral Finance) has been fully reworked, with more careful development of behavioral hypothesis, their implications for security pricing, and their relation to the empirical evidence on security pricing.

Chapter 25 (International Diversification) is fully rewritten, and contains considerable more evidence on global financial markets and security returns.

New Student Problem Manual is available to help students work through problems. It is written by Larry Prather of East Tennessee State University, and contains problems that specifically relate to the concepts discussed in each chapter. Solutions are provided at the end of each chapter.