Z. Bodie – Investments (10th edition)

Автор: Z. Bodie
Название книги: Investments (10th edition)
Формат: PDF
Жанр: Экономические дисциплины
Страницы: 1080
Качество: Изначально компьютерное, E-book

The integrated solutions for Bodie, Kane, and Marcus' Investments set the standard for graduate/MBA investments textbooks. The unifying theme is that security markets are nearly efficient, meaning that most securities are priced appropriately given their risk and return attributes. The content places greater emphasis on asset allocation and offers a much broader and deeper treatment of futures, options, and other derivative security markets than most investment texts.

We’ve just ended three decades of 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, Tenth 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
conduct a sophisticated assessment of watershed current
issues and debates covered by the popular media as well
as 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. Fortunately, we
think, there is no contradiction in the field of investments
between the pursuit of truth and the pursuit of money.
Quite the opposite. 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 satisfying
subjects of scientific inquiry 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 from past CFA
exams appear at the end of nearly every chapter, and, for
students who will be taking the exam, those same questions
and the exam from which they’ve been taken 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 Tenth Edition, we have continued our systematic
collection of Excel spreadsheets that give tools to explore
concepts more deeply than was previously possible. These
spreadsheets, available on the Web site for this text ( www.
mhhe.com/bkm ), provide a taste of the sophisticated analytic
tools available to professional investors.
UNDERLYING PHILOSOPHY
In the Tenth Edition, we address many of the changes in
the investment environment, including the unprecedented
events surrounding the financial crisis.
At the same time, many basic principles remain important.
We believe that attention to these few important
principles can simplify the study of otherwise difficult
material and that fundamental principles should organize
and motivate all study. 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 criticism concerning much conventional
wisdom.
Distinctive Themes
Investments is organized around several important themes:
1. The central theme is the near-informational-efficiency
of well-developed security markets, such as those in the
United States, and the general awareness that competitive
markets do not offer “free lunches” to participants.
A second theme is the risk–return trade-off. This too
is a no-free-lunch notion, holding that in competitive
security markets, higher expected returns come
only at a price: the need to bear greater investment
risk. However, this notion leaves several questions
unanswered. How should one measure the risk of
an asset? What should be the quantitative tradeoff
between risk (properly measured) and expected
return? The approach we present to these issues is
known as modern portfolio theory, which is another
organizing principle of this book. Modern portfolio
theory focuses on the techniques and implications of
efficient diversification, and we devote considerable
attention to the effect of diversification on portfolio
risk as well as the implications of efficient diversification
for the proper measurement of risk and the
risk–return relationship.
2. This text places greater emphasis on asset allocation
than most of its competitors. We prefer this emphasis
for two important reasons. First, it corresponds to
the procedure that most individuals actually follow.
Typically, you start with all of your money in a bank
account, only then considering how much to invest in
something riskier that might offer a higher expected
return. The logical step at this point is to consider
risky asset classes, such as stocks, bonds, or real
estate. This is an asset allocation decision. Second,
in most cases, the asset allocation choice is far more
important in determining overall investment performance
than is the set of security selection decisions.
Asset allocation is the primary determinant of the
risk–return profile of the investment portfolio, and so
it deserves primary attention in a study of investment
policy.
3. This text offers a much broader and deeper treatment
of futures, options, and other derivative security
markets than most investments texts. These
markets have become both crucial and integral to
the financial universe. Your only choice is to become
conversant in these markets—whether you are to be
a finance professional or simply a sophisticated individual
investor.