New Features:

• Every chapter has been reviewed and revised to give instructors and students the most modern, up-to-date textbook available. All tables and figures have been updated where necessary, and examples have been updated to reflect current issues and happenings in the dynamic world of investments. In addition, the following key content updates and additions have been done for this edition.
• New Chapter 20 – Hedge Funds. Topics include: hedge fund strategies, problems in evaluating edge fund performance, the exposure of hedge funds to “black swans,” and hedge fund fees.
• Credit Crisis Updates. Updates in chapters 1 through 3 reflect market developments during the credit crisis, such as the demise of the investment banks, new restrictions on short selling, and turmoil in the markets for short-term instruments and money market funds.
• New Coverage. New coverage throughout the book includes an extensive treatment of behavioral finance, a new discussion of asset price bubbles in the context of market efficiency, and new material on the debate over mark-to-market accounting and its ramifications for the market crash of 2008.
• Connect . This exciting web-based program will help your students learn investments by duplicating problems from each chapter in the textbook and by providing automatic grading and feedback to both students and instructors. It will include twice as many problems as the Homework Manager software in the 7 th edition! Instructors have great flexibility by controlling the rules and policies for assignments, which can range from self-study sessions to homework sessions to proctored exams. Connect can also be set in “algorithmic” mode to present students with new data each time an assignment is worked, so they can work on fresh problems with the same structure until they master the concept. Immediate scoring and feedback helps guide and optimize student learning. The 8 th edition Test Bank is also included in Connect for online testing and grading.
• Connect Plus. This packaging option combines all the great features of Connect, along with access to an online version of Essentials of Investments, linked to additional study features, so that students can easily refer back to the text for review and guidance.
• End of Chapter Questions are now spilt by level of difficulty: Quiz, Problems, and Challenge Problems. As a result the CFA Problems will now appear in their own section immediately following the Challenge Problems.
  

Retained Features:

• Plentiful, high quality end of chapter material includes a chapter summary, key terms with page references, Problem Sets (split by level of difficulty), CFA Problems, S&P Problems, Excel problems- with templates available on the OLC, Solutions to Concept Check questions, and Internet Activities. Appendix B lists each CFA question and the level and year of the CFA exam from which it was derived.
• Numerous Excel Applications and Problems are included where appropriate. This feature starts with an example presented in the chapter, briefly discusses how a spreadsheet can be valuable for investigating the topic, shows a sample spreadsheet, and then directs students to the web to work with an interactive version of the spreadsheet. Select chapters also contain Excel problems and are denoted by an icon. Excel spreadsheets are found on the book website at www.mhhe.com/bkm.
• Numbered Equations are called out in the text and identified by equation numbers. Separate numbered and titled examples are integrated in the chapters and indicated by a colored sidebar. Using the worked-out solutions to these examples as models, students can learn how to solve specific problems in a step-by-step manner as well as gain insight into general principles by seeing how they are applied to answer questions.
• 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. These problems provide instructors with an easy online way to incorporate current, real world data into the classroom. Access to this rich online resource is FREE with every new copy of the text.
• Strong usage and inclusion of the Internet. One WebMaster box is included among of the end of chapter material. These help students practice and understand how to work with investment topics on the web. In addition, websites related to chapter topics are featured among the OLC to teach students how the chapter material relates to the real world of investments.
• Current articles from financial publications such as The Wall Street Journal are featured as boxed readings, entitled On the Market Front. Each box is discussed in the narrative of the text to strongly link the real-world relevance to the chapter topics.
• Unique Chapter 21 (Taxes, Inflation, and Investment Strategy) shows how individuals can plan investment and savings strategies that account for the interaction of taxes and inflation. The chapter treats personal finance issues in a rigorous manner, and complements the material already presented on active institutional investment management.
• StockTrak Discount Coupon for $5 OFF is printed on the end sheet of the book for those interested in using this simulation in the classroom.