Intended for undergraduate and MBA investments courses in finance and economics departments, this text has been more substantially changed than any other previous edition. It maintains its comprehensive coverage with numerous examples and applications throughout the text. The most important and far-reaching change is the incorporation of arbitrage concepts into more chapters, including a full separate chapter (11) on Arbitrage Pricing Theory (APT) and the implications of APT throughout. There are essay questions and problems, and free investment software. New investment products and the latest on option theories are included along with new material including the October 1987 crash and the global nature of investing.