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Investments
The past three decades witnessed rapid and profound change in the investments industry as well as a financial crisis of historic magnitude. The vast expansion of financial markets during this period was due in part to innovations in securitization and credit enhancement that gave birth to new trading strategies. These strategies were in turn made feasible by developments in communication and information technology, as well as by advances in the theory of investments.
Yet the financial crisis also was rooted in the cracks of these developments. Many of the innovations in security design facilitated high leverage and an exaggerated notion of the efficacy of risk transfer strategies. This engendered complacency about risk that was coupled with relaxation of regulation as well as reduced transparency, masking the precarious condition of many big players in the system. Of necessity, our text has evolved along with financial markets and their influence on world events.
Investments, Twelfth Edition, is intended primarily as a textbook for courses in investment analysis. Our guiding principle has been to present the material in a framework that is organized by a central core of consistent fundamental principles. We attempt to strip away unnecessary mathematical and technical detail, and we have concentrated on providing the intuition that may guide students and practitioners as they confront new ideas and challenges in their professional lives.
This text will introduce you to major issues currently of concern to all investors. It can give you the skills to assess watershed current issues and debates covered by both the popular media and more-specialized finance journals. Whether you plan to become an investment professional, or simply a sophisticated individual investor, you will find these skills essential, especially in today’s rapidly evolving environment.
Our primary goal is to present material of practical value, but all three of us are active researchers in financial economics and find virtually all of the material in this book to be of great intellectual interest. The capital asset pricing model, the arbitrage pricing model, the efficient markets hypothesis, the option-pricing model, and the other centerpieces of modern financial research are as much intellectually engaging subjects as they are of immense practical importance for the sophisticated investor.
In our effort to link theory to practice, we also have attempted to make our approach consistent with that of the CFA Institute. In addition to fostering research in finance, the CFA Institute administers an education and certification program to candidates seeking designation as a Chartered Financial Analyst (CFA). The CFA curriculum represents the consensus of a committee of distinguished scholars and practitioners regarding the core of knowledge required by the investment professional.
Many features of this text make it consistent with and relevant to the CFA curriculum. Questions adapted from past CFA exams appear at the end of nearly every chapter, and references are listed at the end of the book. Chapter 3 includes excerpts from the “Code of Ethics and Standards of Professional Conduct” of the CFA Institute. Chapter 28, which discusses investors and the investment process, presents the CFA Institute’s framework for systematically relating investor objectives and constraints to ultimate investment policy. End-of-chapter problems also include questions from test-prep leader Kaplan Schweser.
In the Twelfth Edition, we have continued our systematic presentation of Excel spreadsheets that will allow you to explore concepts more deeply. These spreadsheets, available in Connect and on the student resources site (www.mhhe.com/Bodie12e), provide a taste of the sophisticated analytic tools available to professional investors.
UNDERLYING PHILOSOPHY
While the financial environment is constantly evolving, many basic principles remain important. We believe that page xviifundamental principles should organize and motivate all study and that attention to these few central ideas can simplify the study of otherwise difficult material. These principles are crucial to understanding the securities traded in financial markets and in understanding new securities that will be introduced in the future, as well as their effects on global markets. For this reason, we have made this book thematic, meaning we never offer rules of thumb without reference to the central tenets of the modern approach to finance.
The common theme unifying this book is that security markets are nearly efficient, meaning most securities are usually priced appropriately given their risk and return attributes. Free lunches are rarely found in markets as competitive as the financial market. This simple observation is, nevertheless, remarkably powerful in its implications for the design of investment strategies; as a result, our discussions of strategy are always guided by the implications of the efficient markets hypothesis. While the degree of market efficiency is, and always will be, a matter of debate (in fact we devote a full chapter to the behavioral challenge to the efficient market hypothesis), we hope our discussions throughout the book convey a good dose of healthy skepticism concerning much conventional wisdom.
https://bookshelf.vitalsource.com/reader/books/9781260590241
Call Number | Location | Available |
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332.632 BOD i | PSB lt.1 - B. Wajib | 1 |
Penerbit | New York Mc Graw Hill., 2021 |
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Edisi | 12 |
Subjek | Investments Portfolio management |
ISBN/ISSN | 9781260571158 |
Klasifikasi | 332.632 |
Deskripsi Fisik | xviii, 965 p. : ill. ; 28 cm |
Info Detail Spesifik | - |
Other Version/Related | Tidak tersedia versi lain |
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