NEW TO THIS   EDITION
The most significant changes made to this edition were in Section IV -Common Stock Analysis and Portfolio Management. A new chapter (chapter 11) provides a comprehensive overview of equity portfolio management. Fundamental Analysis was included in Appendices C and D of the first. Edition. This material was shaped into a chapter (chapter 12) in this edition. A new chapter (chapter 15) provides a detailed discussion of dividend discount models, and the new chapter 16 focuses on the increasingly important area of equity style management. A new chalter (chapter 17) focuses on the appliation of factor models in equity portfolio management.

This chapter discusses the different types of factor models (statical,macroeconomics, and fundamental),specific models used.in practice, and how factor models can bsed to construct and control the risk of a portfolio .Finally, the coverage on equity trading costs was integrated from several chapters in the first edition into one chapter (Chapter 18).

Section 1 Background
Section 2 Portfolio Theory and Asset Pricing
Section 3 Institutional Investors and Their Objectives
Section 4 Common Stock Analysis and Portfolio Management
Section 5 Fixed Income Analysis and Portfolio Management
Section 6 Asset Allocation and Performance Evaluation