19 of 23 people found the following review helpful
Good but not perfect. Caters to the CFA takers
, June 14, 2011
This review is from: Investments (Hardcover)
This book deals primarily with equity and bond investment finance. This is not a general finance book. I wouldn't necessarily recommend this book, for example, to those who want to study corporate finance.
The book does a quite good, but not perfect, job of explaining the elegant finance subject matters such as CAPM, bond pricing, and risk management. For example, although I knew that higher stocks with higher Beta must have higher return than stocks with lower Beta (assuming CAPM is true), the book never bothers to explain precisely why. One must deduct the reasons from the CAPM assumptions and equations, which is not always intuitive.
The book also provides second set of questions for those who are studying for the CFA. I don't know how closely the book's questions resembles the real CFA questions.
I wish the book had more Excel examples and problems. Although the book does not ignore Excel, most of the problems and solutions involve using a calculator. Given that Excel, not the calculator, is the principle tool of finance (and even Excel is being upstaged by data analytics using terabytes of data), I thought the book was little too old fashioned in its examples, problems, and solutions.
Overall, this is a nice textbook with some of the best explainations of finance concepts I have ever read.
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