Modern Portfolio Theory and Investment Analysis 
asked by redryder on November 10, 2006 6:53 PM
This book covers the characteristics and analysis of individual securities as well as the theory and practice of optimally combining securities into portfolios. Stressing the economic intuition behind the subject matter, this classic text pres-ents advanced concepts of investment analysis and portfolio management.
It can be used for courses in both portfolio theory and in investment analysis that have an emphasis on portfolio the-ory. It can also be used in a course in investments where both portfolio analysis and security analysis are discussed.
The authors' goal has been to make all the material in this text accessible to students of portfolio analysis and invest-ment management, both at the undergraduate and graduate levels while maintaining the rigor through the use of ap-pendices which can be used in conjunction with the text.
It can be used for courses in both portfolio theory and in investment analysis that have an emphasis on portfolio the-ory. It can also be used in a course in investments where both portfolio analysis and security analysis are discussed.
The authors' goal has been to make all the material in this text accessible to students of portfolio analysis and invest-ment management, both at the undergraduate and graduate levels while maintaining the rigor through the use of ap-pendices which can be used in conjunction with the text.
Reviews
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If you are looking for one textbook on financial investment, this book should be on the top of your list. It has very solid and comprehensive coverage of all the major topics in financial investment, from portfolio construction to CAPM to options to global investing. What I like the most is the detailed discussions on the various pros and cons of each model or technique people use in the real world. This book is a little light on math, but there's enough to satisfy casual readers who want some math but don't want to deal with things like linear algebra or stochastic processes. Another excellent feature is the large number of references the authors provide.
I cannot give this book 5 stars because, due to the multi-coauthorship, the chapters can be a little uneven in both readability and level of treatment. One chapter will give you two pages of algebra from the first grade, and the next chapter is packed with discussions that require a deep understanding of economic theory. The audience of this book is a college senior or a first-year master's or Ph.D. student, which may explain some of this unevenness. The book also tends to be wordy at times.
But overall, this is a good textbook that you can learn from as well as reference in the future.
I cannot give this book 5 stars because, due to the multi-coauthorship, the chapters can be a little uneven in both readability and level of treatment. One chapter will give you two pages of algebra from the first grade, and the next chapter is packed with discussions that require a deep understanding of economic theory. The audience of this book is a college senior or a first-year master's or Ph.D. student, which may explain some of this unevenness. The book also tends to be wordy at times.
But overall, this is a good textbook that you can learn from as well as reference in the future.
reviewed by iconfess on November 12, 2006 1:39 AM
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I got what I expected at the time I was supposed to get it.
reviewed by potato on November 17, 2006 8:30 PM
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I very much enjoyed this book, but could only give it four stars because it is a bit out of date regarding some of the instruments of the capital markets. For instance, credit derivatives and total return swaps are used to round out and diversiry bond portfolios especially in structured finance. Tavakoli has written an excellent book on these products: "Credit Derivatives" (Second Edition). These are off balance-sheet products that are a form of financing. Tavakoli also talks about other types of financing which reduce portfolio concentration risk.
reviewed by perfect10 on November 26, 2006 5:14 PM
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This was one of the texts I had to read for one of my MBA classes. It provides an excellent theoretical background in finance and the theories that link finance to macro and micro economics. It is not very practical however. Not much in the book can be applied. It is a must, however, for any serious student of finance. The coverage of option models is a little light, however. I highly recommend that people have a background in calculus, differential equations, probability theory, and linear algebra before reading this book.
reviewed by paradiselove on November 27, 2006 4:16 PM