An introduction to investment theory - William N. Goetzmann Yale School of Management
This online text 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.
