Quantitative Investment Analysis (CFA Institute Investment Series) [Hardcover]

Richard A. DeFusco CFA (Author), Dennis W. McLeavey CFA (Author), Jerald E. Pinto CFA (Author), David E. Runkle CFA (Author), Mark J. Anson PhD CFA (Foreword)

Book Description

Publication Date: January 22, 2007 | ISBN-10: 0470052201 | ISBN-13: 978-0470052204 | Edition: 2

In the Second Edition of Quantitative Investment Analysis, financial experts Richard DeFusco, Dennis McLeavey, Jerald Pinto, and David Runkle outline the tools and techniques needed to understand and apply quantitative methods to today's investment process.

Now, in Quantitative Investment Analysis Workbook, Second Edition, they offer you a wealth of practical information and exercises that will further enhance your understanding of this discipline. This essential study guide--which parallels the main book chapter by chapter--contains challenging problems and a complete set of solutions as well as concise learning outcome statements and summary overviews.

If you're looking to successfully navigate today's dynamic investment environment, the lessons found within these pages can show you how. Topics reviewed include:

• The time value of money
• Discounted cash flow
• Probability distributions
• Sampling and estimation
• Hypothesis testing
• Multiple regression
• Time-series analysis
• And much more

Editorial Reviews

From the Inside Flap

As part of the CFA Institute Investment Series, the Second Edition of Quantitative Investment Analysis has been designed for a wide range of individuals, from graduate-level students focused on finance to practicing investment professionals. This globally relevant guide will help you understand quantitative methods and apply them to today's investment process.

In this latest edition, the distinguished team of Richard DeFusco, Dennis McLeavey, Jerald Pinto, and David Runkle update information associated with this discipline; improve the presentation and coverage of several major areas, including regression, time series, and multifactor models; and introduce an even greater variety of investment-oriented examples—which reflect the changes currently taking place in the investment community. Throughout the text, special attention is paid to ensuring the even treatment of subject matter, consistency of mathematical notation, and continuity of topic coverage that is so critical to the learning process.

Valuable for self-study and general reference, this book provides clear, example-driven coverage of a wide range of quantitative methods. Topics discussed include:

• The time value of money
• Discounted cash flow applications
• Common probability distributions
• Sampling and estimation
• Hypothesis testing
• Correlation and regression
• Multiple regression and issues in regression analysis
• Time-series analysis
• Portfolio concepts

And to further enhance your understanding of the tools and techniques presented here, don't forget to pick up the Quantitative Investment Analysis Workbook, Second Edition—an essential guide containing learning outcomes and summary overview sections along with challenging problems and solutions.

With each author bringing his own unique experiences and perspectives to the table, the Second Edition of Quantitative Investment Analysis distills the knowledge, skills, and abilities you need to succeed in today's fast-paced financial environment. Filled with in-depth insights and practical advice, Quantitative Investment Analysis, Second Edition offers a comprehensive treatment of quantitative methods that combines best practices with solid theory.

From the Back Cover

Praise for Quantitative Investment Analysis, Second Edition

"Quantitative Investment Analysis is an essential book for any serious investor in today's financial markets. Cogently written, the authors cover a robust array of quantitative methods in a straightforward and digestible style. This book should be on everyone's short list of necessary reading and reference."
—Gary P. Brinson, CFA, President, GP Brinson Investments

"This second Edition of Quantitative Investment Analysis provides a strong foundation for investment practitioners seeking benefit from the rigor and discipline of quantitative tools and analysis. An abundance of examples enhances the value of this essential text for non-classroom pedagogy."
—Brian Singer, CFA, UBS Global Asset Management

"Quantitative Investment Analysis gets to the heart of the matter. Crisp, well-written, and technically thorough, this book provides an excellent foundation for understanding the statistics and economics of portfolio management and asset pricing. It also provides a thorough review of the major asset pricing models widely used today."
—David Blackwell, Head and RepublicBank/James W. Aston Professor of Finance, Mays Business School, Texas A&M University

See all Editorial Reviews

Product Details

• Hardcover: 600 pages
• Publisher: Wiley; 2 edition (January 22, 2007)
• Language: English
• ISBN-10: 0470052201
• ISBN-13: 978-0470052204
• Product Dimensions: 10.2 x 7.3 x 1.3 inches
• Shipping Weight: 2.6 pounds (View shipping rates and policies)
• Average Customer Review: 4.3 out of 5 stars  See all reviews (7 customer reviews)
• Amazon Best Sellers Rank: #26,633 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

23 of 26 people found the following review helpful:

2.0 out of 5 stars Dé Jà Vu, August 21, 2008

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********** - See all my reviews

This review is from: Quantitative Investment Analysis (CFA Institute Investment Series) (Hardcover)

This second edition is not materially different in content from the first. Additionally, the Learning Outcome Statements that once preceded the chapters in the first edition and the exercises that followed the chapters have been removed from the new edition. Had I known this fact, I wouldn't have purchased a new book. There is a companion book that has those two omitted features, but now your buying two books instead of one.

If you are pursing the CFA designation, then my suggestion is to purchase the first edition on the secondary market at a drastic savings and without loss of content. If you are interested in the content of the book, then I would suggest proper books on the subject matters. Taken individually, the individual chapters are extremely weak. The actual mathematics has been replaced by "feel good" qualitative descriptions. It is all quite pathetic really; however, if you're objective is to pass the exam, then do it their way for six months. Once you're done, sell your first edition book on the secondary market.

With regard to the other new releases, I suspect that they don't have Learning Objective Statements or problems included in the main book. Hence, the secondary market is a great place to obtain previous editions and continue the process once again. Thank you.

7 of 9 people found the following review helpful:

5.0 out of 5 stars Great comprehensive book that starts from the ground up..., December 30, 2008

By 

B. M. Gross (Atlanta, GA) - See all my reviews
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This review is from: Quantitative Investment Analysis (CFA Institute Investment Series) (Hardcover)

I have found great disappointment with many Quantitative Analysis books because of their lack of explanation of sophisticated concepts. I find that either they are geared towards academics who already a Masters or pHd in the field, or they do a poor job of providing adequate explanation of foundational concepts (I guess that is to be expected from pHd's).

This book does a fabulous job of:
- introducing a topic
- summarizing its usefulness in a relevant context
- providing sufficient methodology of calculations and relevant mathematics
- and then providing case studies to be worked out (with solutions) that apply the given concept.

This book has clarified several issues for me, from multi-factor models to statistical estimation and sampling.

I strongly recommend this book to anyone who does not already have a degree in the field who is looking to gain greater understanding of Quantitative concepts in the field of Investment Management. This book will now be the most useful reference on my bookshelf. It is the BEST book I have found on the topic to date (and I have bought well over a dozen).

The only drawback is that the book does not come with a companion CD that illustrates more sophisticated examples in a computing environment.

4.0 out of 5 stars Great view of qualatiative analytics, January 12, 2012

By 

Tyslana Cigetarts - See all my reviews

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This review is from: Quantitative Investment Analysis (CFA Institute Investment Series) (Hardcover)

I used this book in my prep work for the CFA, and it gives an excellent view of statistics from the ground up. Additionally, while this book is geared to students of the CFA institute, I would also highly recommend it to those simply trying to get a stronger grasp on quantitative analysis.