Investments, 12th Edition
Zvi Bodie, Alex Kane and Alan J. Marcus
ISBN:9781260571158
Investments, 12th Edition sets the standard as a graduate (MBA) text intended primarily for courses in investment analysis. The guiding principle has been to present the material in a framework that is organized by a central core of consistent fundamental principles and to introduce students to major issues currently of concern to all investors.
In an effort to link theory to practice, the authors make their approach consistent with that of the CFA Institute with many features consistent with and relevant to the CFA curriculum. By combining these principles and features, this title will enable you to deliver a sucessful course in which your learners are fully equipped with investments knowledge and practice.
What's new
Updated and Expanded Discussion Materials
Surrounding historical evidence on risk-return relation, extensions to the CAPM and recently uncovered market anomalies, for example, related to volatility, accruals, growth, and profitability.
New Words from the Street Content
Updated short articles and excerpts from periodicals such as The Wall Street Journal helping to bring the subject to life for learners.
Thoroughly Amended and New Content
Includes Fintech and cryptocurrency, updated material on the LIBOR scandal and a discussion of Schiller’s CAPE (cyclically-adjusted P/E ratio).
| PART 1: Introduction | PART 4: Fixed-Income Securities | |
| Ch. 1 The Investment Environment | Ch. 14 Bond Prices and Yields | |
| Ch. 2 Asset Classes and Financial Instruments | Ch. 15 The Term Structure of Interest Rates | |
| Ch. 3 How Securities Are Traded | Ch. 16 Managing Bond Portfolios | |
| Ch. 4 Mutual Funds and Other Investment Companies | ||
| PART 5: Security Analysis | ||
| PART 2: Portfolio Theory and Practice | Ch. 17 Macroeconomic and Industry Analysis | |
| Ch. 5 Risk, Return, and the Historical Record | Ch. 18 Equity Valuation Models | |
| Ch. 6 Capital Allocation to Risky Assets | Ch. 19 Financial Statement Analysis | |
| Ch. 7 Efficient Diversification | ||
| Ch. 8 Index Models | PART 6: Options, Futures, and Other Derivatives | |
| Ch. 20 Options Markets: Introduction | ||
| PART 3: Equilibrium in Capital Markets | Ch. 21 Option Valuation | |
| Ch. 9 The Capital Asset Pricing Model | Ch. 22 Futures Markets | |
| Ch. 10 Arbitrage Pricing Theory and Multifactor Models of Risk and Return | Ch. 23 Futures, Swaps, and Risk Management | |
| Ch. 11 The Efficient Market Hypothesis | ||
| Ch. 12 Behavioral Finance and Technical Analysis | PART 7: Applied Portfolio Management | |
| Ch. 13 Empirical Evidence on Security Returns | Ch. 24 Portfolio Performance Evaluation | |
| Ch. 25 International Diversification | ||
| Ch. 26 Hedge Funds | ||
| Ch. 27 The Theory of Active Portfolio Management | ||
| Ch. 28 Investment Policy and the Framework of the CFA Institute | ||
- Chapter 1: The Investment Environment - This chapter now addresses Fintech and cryptocurrency.
- Chapter 2: Asset Classes and Financial Instruments - The material on the LIBOR scandal and proposed replacements for the LIBOR rate that may be implemented in the next few years has been updated.
- Chapter 3: How Securities Are Traded - Updated for developments in market microstructure, including the replacement of specialists by designated market makers.
- Chapter 5: Risk, Return, and the Historical Record - Extensively reorganized and substantially streamlined. The material on interest rates and the discussion of historical evidence on the risk-return relation have both been unified.
- Chapter 7: Efficient Diversification - The discussion of risk sharing, risk pooling, and time diversification has been extensively rewritten with a greater emphasis on intuition.
- Chapter 9: The Capital Asset Pricing Model - Added more discussion on extensions to the CAPM, in particular, the implications of labor and other nonfinancial income for the risk return trade-off.
- Chapter 10: Arbitrage Pricing Theory and Multifactor Models of Risk and Return - The chapter now contains an explicit illustration of the estimation and implementation of a multifactor security market line. It also contains a new section on smart betas.
- Chapter 11: The Efficient Market Hypothesis - Added more material on recently uncovered market anomalies, for example, related to volatility, accruals, growth, and profitability.
- Chapter 12: Behavioral Finance and Technical Analysis - Updated and expanded the material on the range of behavioral biases that seem to characterize investor decision making.
- Chapter 13: Empirical Evidence on Security Returns - Added a discussion of the debate concerning characteristics versus factor sensitivities as determinants of expected return.
- Chapter 24: Portfolio Performance Evaluation - Revamped the derivation and motivation of the M-square and T-square measures, which attempt to restate the Sharpe and Treynor measures in terms
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About the authors
Zvi Bodie
Zvi Bodie is Professor Emeritus at Boston University. He holds a PhD from the Massachusetts Institute of Technology and has served on the finance faculty at the Harvard Business School and MIT’s Sloan School of Management.
Alex Kane
Alex Kane holds a PhD from the Stern School of Business of New York University and has been Visiting Professor at the Faculty of Economics, University of Tokyo; Graduate School of Business, Harvard; Kennedy School of Government, Harvard; and Research Associate, National Bureau of Economic Research.
Alan Marcus
Alan Marcus is the Mario J. Gabelli Professor of Finance in the Carroll School of Management at Boston College. He received his PhD in economics from MIT. Professor Marcus has been a visiting professor at the Athens Laboratory of Business Administration and at MIT’s Sloan School of Management.
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