This hypertext book introduces
the foundations of investment decision-making. Beginning with portfolio
theory and the tradeoff between risk and return, it shows how the
definition of investor risk depends crucially upon diversification. It
explains modern asset pricing models currently used to determine the
expected rate of return on investments and finally it presents evidence
about what information can be used for strategic investment advantage. It
assumes some knowledge of statistics and a familiarity with the concepts
of net present value.