This text also continues to emphasize asset allocation more than most other books. We prefer this emphasis for two important reasons. First, it corresponds to the procedure that most individuals actually follow when building an investment portfolio. Typically, you start with all of your money in a bank account, only then considering how much to invest in something riskier that might offer a higher expected return.

The logical step at this point is to consider other risky asset classes, such as stock, bonds, or real estate. This is an asset allocation decision. Second, in most cases the asset allocation choice is far more important than specific security-selection decisions in determining overall investment performance. Asset allocation is the primary determinant of the risk-return profile of the investment porfolio, and so it deserves primary attention in a study of investment policy.

Part 1 Elements of Investments
Part 2 Portfolio Theory
Part 3 Fixed-Income Securities
Part 4 Security Analysis
Part 5 Derivative Assets: Options and Futures
Part 6 Active Investment Management