Book Description

A comprehensive reevaluation of the nature of economic systems across the globe, A New View of Comparative Economic Systems is today's choice for today's world.This exciting text is not merely a re-treading of an obsolete Soviet-oriented text, but a fresh, new, and comprehensive reappraisal of the nature and study of economic systems.A New View of Comparative Economic Systems defines a new approach and will set the standard for years to come in Comparative Economic courses. ... Read more

Book Description

In direct contrast to most existing derivatives books which emphasize issues related to the pricing and hedging of derivatives and are intended more to train traders, not managers, this groundbreaking book is designed for those who want to teach managers how to use derivatives to maximize firm value through risk management. This book presents the crucial tools necessary for executives and future derivatives players to effectively hedge with derivatives in order to protect firms from losses.Coverage includes all the pricing tools that are necessary for those who seriously intend to use derivatives as well as the necessary tools to evaluate how to use a particular derivative to reduce risk.Rather than focusing on an array of possible derivatives, the book is much more concerned about teaching a general approach to use derivatives so that students know how to use existing derivatives for risk management as well as derivatives that do not yet exist. ... Read more

Reviews (2)

Encountered feelings
I have encountered feelings about this book. I liked that it relates corporate finance topics with risk management, giving a better picture of how finance should be understood. I definitely agree that it is full of very valuable insights that increase our knowledge and understanding of finance and risk management. Some of my impressions about the book are:

-The book is sometimes easy to follow, but many times it is very difficult to follow.
-Many difficult parts to follow were unnecessarily complicated by the author.
-Many times the book didn't follow clearly an idea, as if each following sentence or paragraph was written by different people with something different in his mind each.
-Many times it used several lines and paragraphs to explain something simple that could be stated in one sentence.
-Some topics were explained very clearly but others were dreadfully explained.
-Some numeric examples were clear and some were very difficult to follow

My opinion is that you should look for another book on the subject; unfortunately I cannot give an advice about an alternative book.

Anyway, before reading this book you should have a good understanding about the CAPM, derivatives (futures, forwards, options), and basic probability.

This book could become a great book if the author took the time to improve its readability and coherence, because it has very valuable knowledge embedded in it.

Derivatives and hedging for everyone
Risk Management and Derivatives by Rene Stulz is a pioneering book into the need, value, and how to of corporate risk management. Rene Stulz is one of the leaders in this area of finance and has researched and studied it over many years, he is one of the leading experts in the understanding and managing of firm risk. The book motivates the subject by presenting existing and new arguments for the use of risk management by corporations. The book is designed to prepare current and future managers and executives for the world and value of derivatives. To assist the reader, learning objectives are presented at the beginning of each chapter. Many books approach the subject in a very technical or overly simplistic method to the use of derivatives to manage a firms risk, this book gives enough detail for a good understanding and use of derivatives for managing a firm's risk but is not to technical for the non-derivatives expert. All necessary quantitative background is provided in the book.

The book begins by discussing derivatives and how they are used to manage risks. It then goes on to look at the value of risk management from the investor as well as the firms viewpoint. The book then examines the basic derivatives tools used for managing risk, including forwards, futures and options. To help the manager in the use of these instruments the book uses many real world examples and discusses the identification and measurement of exposures. To help the reader understand the use and value of the most commonly used derivatives instruments, the author discusses their use and even explains the pricing of options using the Black-Scholes as well as the binomial pricing models. There is even a chapter on interest rate risk, which is the must common risk that is hedged. In the last several chapters of the book, the author goes beyond the basics and discusses more advanced risk management tools and instruments along with a chapter on swaps, which is a fast growing and flexible tool for hedging interest and exchange rate risks. The book concludes with an extensive discussion of the practice of risk management that examines the recent academic studies and predictions of the future of this valuable and growing field.

If you are interested in risk management or are a manager that is interested in increasing firm value and reducing risk, then this is a must read. This book is the state of the art in this exciting area of finance and is written by one of its leading pioneers. ... Read more

Book Description

Don't let the conservative nature of many fixed income intruments mislead you! These are complex, potentially risky investments, and Fixed Income Mathematics is required reading if you are to maximize both income and capital growth from fixed income investing. An expert, thorough analysis of this volatile market's latest developments is presented in the straight-forward, comprehensive style that has become a Fabozzi trademark. It will leave you with a greater ability to utilize and take advantage of basic strategies as well as the newest advances in fixed income analysis and research. ... Read more

Reviews (10)

Classic, but dated.
This book covers the territory of fixed income as it existed 4 to 5 years ago. Now credit derivatives trade relative to the bond markets, and have a pricing structure all their own. First-to-default baskets and credit derivatives are important fixed income products. There has been a paradigm shift in the market in the past 4 years. Credit default swaps came out of nowhere and are now $2 trillion in size and continue explosive growth, and that's just one product in credit derivatives land.

I highly recommend Tavakoli's book: "Credit Derivatives and Synthetic Structures" (2nd Edition).

Good reference
Ok, so Fabozzi is the ultimate in reference material and general fixed income awareness. The book is good, it provides most of what you need to understand fixed income valuations, particularly essential bond pricing. However, the book really serves well mostly as a reference. There are few true explanations of formulas. With a little effort you can figure out the derivations yourself, but still, is not the point of buying a book with "mathematics" in the title to have something to guide you through that step? Again, worth having, but not the ultimate to explain the nitty gritty, though not sure that that text exists.

A good bridge between math and fixed income products
Even though this is not really a advanced book on fixed income products analysis/modeling. It is, for technical background, a good induction book for basic fixed income products with basic analysis tools.

This is a real beginner's guide
The book was a great disappointment to me. The title and subtitle (Analytical and statistical techniques) led me to think that the book covered fixed income securities at a sophisticated and advanced level. Not so. If you need to learn how to calculate a PV, FV or IRR, this is the book for you...otherwise probably not!

The ¿Perfect¿ Book For Me
Many of us will be retiring in the next few years, or may already be retired. Fixed income from our financial investments will be an important part of our lives. How many of us really know what Yield To Maturity (YTM) means? Or, for that matter, the myriad of other measurements associated with fixed-income instruments? As a retired engineer with a propensity for computational mathematics, it is my natural desire to optimize my fixed-income portfolio. This "Perfect" book gives me a good head start in my endeavors. The text is logical and easy to understand. The mathematics is "cookbook" simple. As a minimum, I will better equipped to determine the correct price for most fixed-income investments. With enough effort, I should be able to manage my own near "Perfect" portfolio. Fabozzi picks up where most writers stop, namely, the quantitative analysis.
Thank you Frank. ... Read more

Book Description

One of the few books that addresses financial and managerial accountingwithin the three major areas of the public sector—government, health,and not-for-profit—the Second Edition provides the fundamentals offinancial management for those pursuing careers within these fields. KEYTOPICS: With a unique presentation that explains the rules specific tothe public sector, this book outlines the framework for readers to accessand apply financial information more effectively. Employing an engaging anduser-friendly approach, this book clearly defines essential vocabulary,concepts, methods, and basic tools of financial management and financialanalysis that are imperative to achieving success in the field. This book is intended for financial managers and generalmanagers who are required to obtain, understand, and use accountinginformation to improve the financial results of their organizations,specifically within the areas of government or public policy and management,not-for-profit management, and health policy and management. ... Read more

Book Description

"McMillan is the top name in options education, bar none."
—Paul Stevens, President, Options Clearing Corp. and The Options Industry Council

"Larry wrote the book we built an industry on," notes Ned W. Bennett, CEO of OptionsXpress, referring to McMillan’s thick volume, Options as a Strategic Investment. A decade later, McMillan on Options focused on McMillan’s own personal strategies and favored techniques. Now comes Profit with Options, a treasure that complements his previous works and continues his legacy of educating investors on the benefits and strategies for incorporating options into a winning investment program.

Profit with Options is a unique course book that covers every phase of the options trading process step-by-step, and then reinforces individual concepts through end-of-chapter quizzes, thereby allowing readers to refine their skills. Each chapter covers a specific concept and closes with a set of review questions and answers that will assist the reader in implementing the material covered.Focused on practical ways to profit from stock, index, and futures options, this guide covers basic to advanced concepts and includes everything you need to consistently "profit with options." Learn how to determine whether to buy options or the underlying stock, use price and volume as technical indicators, apply index options as portfolio protection, and implement powerful volatility strategies.

When it comes to options trading education, no one is more respected than "Trader’s Hall of Fame" award-winner Larry McMillan. Through his bestselling books, popular newsletters, and packed trading workshops, he has become a true industry icon. In Profit with Options, McMillan’s newest offering, you’ll learn powerful, proven, and profitable options trading techniques with the expert guidance of one of the world’s foremost authorities. ... Read more

Reviews (3)

Sloppy editing makes it difficult to learn from this book
Profit with Options seems to have been thrown together from a series of talks, with little attempt at editing. The book is replete with mistakes that render the book useless to a novice options trader and frustrating to read for an expert.

The figures are particularly bad, with incomplete or incorrect legends. On page 9, for example, are shown profit graphs for puts and calls. One problem is that the graph for calls is labeled "Put purchase" and the graph for puts refers to buying a call. This is worse than useless to a beginner because it is flat out wrong, and makes the expert wonder whether anything else in the book is sufficiently reliable to trust. Another problem with this figure is that neither graph has any numbers on the axes.

Poor labeling of figures renders indecipherable many of the figures in Chapter 2, which deals with options as direct indicators. Figure 2.1, for instance, does not provide dates on the X-axis, so when the text says something about what happened on July 29, it's difficult to know where to look on the chart. Many of the charts in this chapter include several data plots, apparently including price and option volume, but the plots are not labeled. Sometimes the text refers to put volume and call volume, but the charts don't indicate which is which.

The text often is no more clear than the figures. The discussion on stops on page 133, for example, states: "So you gave back a lot by waiting for your stop to be hit. Or did you Will, in this case you did, but what if the S&Ps had gone on to 1335?" Who the heck is Will, and what does he have to do with anything?

The "review" questions are not really review questions. I expected them to review subject matter that was covered in the preceding chapter. However, the questions are directed to material is not covered in the chapter.

I'm going to try a different book on options. It's just too frustrating to get anything useful out of this one.

Mostly Great
This is the fourth book on options that I have read.

I learned a lot from the 2 chapters on using options as indicators to spot insider trading activity and the chapter on volatility.

The chapter on using options as insurance will help me teach my family the bare minimum of what every stock investor should know about options.

The chapter on System Trading was useless to me.

One "feature" of this book that irritated me at first is that the "Review Questions" after each chapter quiz the reader on information that wasn't covered. However, I quickly got over this minor irritation because the answers are useful new information. The section is simply mis-labled. It should be called "Relevant Questions" or "Frequently Asked Questions".

At any rate, I used up an entire highlighter pen and that is good indicator that this book is worthwhile.

One other minor nit-pick; the copyright date is 2002 but the examples are from 1999 and 2000 (pre bubble-burst). There are also a few references to "the video" which leads me to belive that this book is a collection of previously written reports. That's fine because the chapters are self-contained but the editor should have deleted the reference to "the video".

Overall I give it 4 stars.

Thank you to the author.

For McMillan fans
This volume continues the work of the author's two previous tomes on options. The author states this work answers questions raised by readers of his first two books. If you liked his previous work, this book is for you. If you are just getting started with options, there are other books for the beginner, including THE SHORT BOOK ON OPTIONS or GETTING STARTED WITH OPTIONS ... Read more

Book Description

Pick the right model for the right moment every time. Whatever your investment philosophy and goals, you’ve probably had trouble at one time or another in measuring the value of a particular asset. Maybe you’ve been wary of the effectiveness of all the valuation models out there and relied on the "guesstimate" approach or simply picked the wrong model for the asset under consideration. Whatever past problems you may have encountered, Damodaran on Valuation will not only convince you of the vitality of the many valuation models available to you, it will help ensure that you develop the acumen needed to select the right model for any valuation scenario. Written by a gifted teacher and respected valuation authority, Damodaran on Valuation offers an overview of the three basic valuation approaches—discounted cash flow, relative, and contingent claim valuation—and the models within these classes. Using plenty of real-world case studies, it explains the purpose of each model, its pros and cons, the steps involved in applying it, and the types of firms to which it is most suited. Soon, you’ll have a solid, practical grasp of tools designed to help you estimate the cost of equity, estimate growth rates, value equity, measure free cash flows to equity, value firms, estimate the value of assets via pricing of comparable assets, and measure the value of assets with option-like characteristics. No model is foolproof. And every valuation is vulnerable to changes in the environment, the economy, and the asset itself. But with Damodaran on Valuation at your side, you can be certain that you’ll have every weapon at your disposal in the battle to accurately determine the value of an asset and to make the right financial decisions under pressure. ... Read more

Reviews (9)

Good but only short version of another
As everyone will agree, this is a good book in valuation tools. With different version of the DCF models, this book is one of the ideal desk reference of security analysis. However, if you also look at the book "Investment Valuation" by Professor Damodaran, you will agree that this one is only a short version of "Investment Valuation". Almost every topic is covered (or copied) from "Investment Valuation".
I gave "Investment Valuation" a 5-star rating. So, for its short version, I give 4-star.

Great book on valuation (mainly equity)
The book is mainly aimed at valuation practitioners and MBA sudents. The book deals with 3 valuation techniques- DCF, relative valuation (based on PE, P/BV, PS multiples) and contingent claims (options). Great insights into determining key variables (PE, PS, P/BV) based on business fundamentals and pro and cons of using each approach. However, the book does not go into enough depth in CAPM and APT. The author assumes that the reader would have a fair idea about financial ratios, fundamentals etc. The best part of the book deals with valuation of special cases like cyclical firms, brands etc. and how corporate restructuring affects value. It also provides great insights into valuation for takeovers and mergers. The author provides a usable framework for valuing intangibles in an acquisition target- what the different sources of synergy are and how to value each in a lucid framework. Overall, a good book to gain a firm footing in investment valuation techniques.

First Rate
This is an excellent book. It serves as both a course in valuation as well as a useful reference tool.

The book is heavily weighted to discounted cash flow analysis, though it also discusses relative valuation (like P/E multipliers) and contingent claims.

Clearly written the book presents in detail simple to complex DCF based models (dividend discount model, free cashflow to equity and free cashflow to the firm). This range of models deal with the complex valuation problem of variable growth. After presenting a model, its limitations and best uses are explained.

He then shows how these models can be used to derive P/E, P/S, and P/BV ratios from fundamentals.

Abundant examples are used to make the material clear.

The book also discusses special situations, e.g., cyclical firms, and distressed firms to mention just a few.

At first glance this book might be mistaken for a "cook book". Lots of formulas and detailed examples of how to work them.

But there is more. And this is where the real "meat" of the book is - underpinning the seeming forest of details and examples - is a valuation logic and philosophy.

If you read this book carefully, you will develop an appreciation for the impact certain fundamentals have on valuation and how they interact with one another. This is much more important than memorizing the formulae in the book.

Also there is some very useful and frank discussion of shortcomings in some of the tools used, including the CAPM and a warning about being seduced into believing that the DCF approach results in certainty.

Valuation involves estimates and formulas (or multiples) are simplifications of very complex real world dynamics. In the businss world, valuation is typically a process of estimating ranges of values for each of several methods chosen (e.g., DCF, market comparables, precedent transacions, replacement value, etc). The resulting matrix of values is then compared (in effect cross checked) to come up with a range of possible values. And here the differences between buyer and seller affect the outcome - different assumptions re the DCF or the cashflow and synergies that can be achieved - come into play to create two different matrices of values - from which the two parties then negotiate the actual price.

The book and its author are well regarded. This particular volume is used in AIMR's CFA study program - which is a measure of its worth.

A good introductory valuation book
This book provides a good introduction for those who want to learn valuation. Explained in simple English, the book describes many tools on how to do the valuation, particularly for stock valuation (DCF, P/E ratio, etc.).

I particularly like the explanation of various models of DCF. The author clearly explains the strengths and weaknesses of each models, possible problems and the solutions to the problems.

However, I found that this book lacks more in-depth analysis of the topics covered. Furthermore, I found that the CAPM model, to some extent, does not truly exist in the real corporate world. I have read many valuation reports from big names in investment banking, many of them do not adopt CAPM (for various reasons that make CAPM unapplicable, which are also inherent weaknesses of CAPM, they just put x% as the discount rate). Only few who still stick to CAPM. There should be a bridge between academic and real world applications. A more detailed discussion on CAPM by the author would resolve this issue.

Damordoran on Valuation
This is a great book. It has a lot of helpful valuation techniques and I find them really useful. I particularly like the part on relative valuation method and the way to solve the problem of evaluating P/E multiple of different countries. Very useful indeed. But there is a missing piece about P/S multiple. It is entirely based on DDM. What about company which is not expected to pay out dividend for the coming 20 years. This is a great book and the basic valuation methods are very well covered and explained. ... Read more

Book Description

Investment performance measurement is the quantification of the results achieved by an investment program. Understanding performance measurement is vital for anyone who participates in the investment process. Investment Performance Measurement is a comprehensive and integrated survey of the steps taken to measure performance as well as a reference guide to the calculation and interpretation of the various risk and return statistics commonly encountered by anyone responsible for selecting, monitoring, and evaluating the performance of investment managers.

Written in a clear and accessible style, with each concept developed through fully worked examples, this book is a valuable guide that provides you with critical insights into many areas of this important step in the investment management cycle.

This straightforward and well-rounded resource provides a step-by-step guide to the processes used by practitioners to analyze the performance of an investment portfolio.

Topics include:

• Calculation of the returns earned by portfolios and portfolio managers
• Measurement of the risks taken to earn these returns
• Measurement of the risk and return efficiency of a portfolio
• Attribution of value added over the benchmark to management decisions
• Presentation and interpretation of returns calculated using industry standards

Filled with in-depth spreadsheet examples, Investment Performance Measurement gives you all the information you’ll need to understand and implement the techniques used to measure the performance of an investment. ... Read more

Reviews (4)

Best book on investment performance measurement
I have read many books on this subject. This book is the best. It's well written, easy to understand, but in much detail.

Some other books only cover some calculation of returns, but this book covers all the subjects that matter to investment performance measurement: Return Measurement, Risk Measurement, Efficiency and Skill Measurement, Performance Attribution and Performance Presentation.

This book is not expensive. Good value for your money.

Anne-Mei-Ling
Indexfund Investment Group BV analyst

Clear and Concise
Excellent presentation of performance measurement. Great for the novice to advanced reader. Very concise yet thorough as well as a focused text. Calculations are clear with plenty of examples which makes this text very user-friendly. The reader can quickly begin to implement the formulas. Highly recommend to anyone interested in this important topic.

A great reference to have....
I find myself referencing Feibel's performance algorithms quite often. The book overall is well written, easy to follow, and quite organized. I recommend it to anyone that needs a good handbook alongside them or is new to performance calcs.

An education and refresher course!
It is about time that a text like this has been made available. There are others out there, but none that cover the breadth and detail required to understand what is relevant today. Covering everything to how returns are calculated, and then moving on up to other more complex issues such as risk and attribution - it lays it all out, along with clear examples to support the text. It should sit as a reference tool on anyone's desk who works in investment management. ... Read more

Book Description

Sell It By Owner and Save is an absolute gold mine filled with practical tips, tools, and techniques that will help the owner prepare for and sell their property, without a real estate agent, saving thousands of dollars in commission fees (this book has proven itself). This book clearly explains how to price and market a home anywhere, deal with aggressive agents, work with prospects, handle the paperwork and good faith deposit plus much more. You’ll find true-to-life examples that make the entire selling process easy to understand. SELL IT BY OWNER and SAVE will give homeowners the confidence they deserve, the know-how to succeed and the courage to see the sale through to completion. ... Read more

Reviews (7)

Outstanding resource for anyone considering selling by owner
This book was an extremely valuable resource and answered all of our FSBO questions. This was our first home sale, so we were a bit apprehensive about how the entire process would work. As it turned out, it was much easier than we could have imagined.

We live in a relatively active area, so we decided not to spend any money on advertising and instead feed off of the other listed properties within our neighborhood. We did put a nicer-than-usual FSBO sign in the yard with an attractive flyer box crafted from a small apartment-style mailbox. We received two strong offers the second week and had a signed contract for 98% of our sale price 19 days after we put the sign out. Since we negotiated a 2.5% commission with the buyer's agent, we saved almost exactly $10,000 over the 7% requested by each full-service agent we interviewed.

Speaking of agents, one of the best parts of this book is the section detailing the tactics that agents will use to try to encourage you to list your home with them. The first four calls/visits we received after putting our home on the market were from agents, and Michael's book did a great job of preparing me in advance to handle those conversations.

Michael's point that 'presentation is everything' will be key to your success. We had our house recarpeted and repainted prior to showing the home. We even rented a storage unit to move some of the 'clutter' out of the house prior to showing. It paid off for us, and if you follow the author's guidance, it will pay off for you too!

PS - Two other homes in our neighborhood are the exact same floor plan as ours, and both were listed by agents with 7 days of our own home going on the market. Our home has been under contract for 30 days, both of those homes are still on the market. Don't let agents discourage you - FSBO really works!

A bargain at any price!
As I began reading SELL IT BY OWNER and SAVE, I realized this was no ordinary How-To text. It is obvious that the author "knows his stuff," and that he is able to explain real estate buying/selling in a conversational style that is both understandable and entertaining. Clearly, his goal was to provide an abundance of useful information to help homeowners achieve success. I highly recommend this book.

Excellent reference book!
I was clueless about how to proceed in selling my home myself, but this book has provided me with all of the information I need. It is an honest assessment of how to sell your own home and is easy to read in and organized format, which will make it easy for future reference.

For anyone who is considering selling their home
Sell It By Owner & Save is a practical, straightforward guide to selling a home without a broker. Accessibly written by a professional broker in down-to-earth, layman's language, Sell It By Owner & Save covers each step of the sale in clear detail. Sell It By Owner & Save is a superbly presented "how to" primer for anyone who is considering selling their home, whether they want to enlist the aid of a broker or not!

Top Marks for an Excellent, well Researched book.
Seldom does one find in self-help books the kind of frank, insightful advice that one does in Michael Kloian's book.

Not only did I find the information accurate and reliable but also totally consistent with my experiences in real estate for over 20 years. But it is also an entertaining book, one written with a sense of humor and compassion by someone who has a genuine concern for the average homeowner with little experience.

It is written without pretense and in a style that is eminently readable. I found particularly insightful and revealing many of the inside tips that only someone with the author's long experience in working with both buyers and sellers could possibly know, and yet be willing to share.

A cursory glance at the table of contents alone will illustrate to anyone the depth and breath of the author's sweep of all the salient issues attendant to the task of selling or in fact even buying a home.

I found nothing overlooked and must even say that the frank discussion of unforeseen problems was both important and necessary for the unwary homeowner to read.

His advice on when and how to engage professionals in the process will save homeowners a great deal of money while at the same time provide them with the requisite tools to act responsibly and professionally in all their transactions.

It is a pungent and strikingly honest book and one that deserves high praise.

I heartily recommend the book to anyone interested in either buying or selling their own home. It was a pleasure to read and confirmed all that I myself have learned in my many years in the business.

- A reader in San Francisco. ... Read more

Book Description

Fundamentals of Corporate Finance (FCF) is written with one strongly held principle– that corporate finance should be developed and taught in terms of a few integrated, powerful ideas.As such, there are three basic themes that are the central focus of the book:1) An emphasis on intuition; underlying ideas are discussed in general terms and then by way of examples that illustrate in more concrete terms how a financial manager might proceed in a given situation.2) A unified valuation approach; net present value (NPV) is treated as the basic concept underlying corporate finance.Every subject covered is firmly rooted in valuation, and care is taken to explain how particular decisions have valuation effects.3) A managerial focus; the authors emphasize the role of the financial manager as decision maker, and they stress the need for managerial input and judgment. ... Read more

Book Description

Praise for Risk budgeting

"Professor Pearson has raised the bar for books on market risk. Moving beyond descriptions of VaR calculation and stress testing, he provides careful discussions of both the refinements and the limits of the VaR technique. Even more importantly, this book provides structure to the heretofore vague idea of ‘risk budgeting.’ "
–Charles Smithson, Managing Partner, Rutter Associates

"Pearson has written an excellent resource for risk management practitioners who actually need to compute and use VaR. Numerous concrete examples make a broad range of VaR techniques accessible to the people who actually need to use them. The book also provides tangible applications of risk budgeting, a term often used but rarely made relevant. Pearson has put meat on the bones for plan sponsors who want to actually employ risk budgeting techniques."
–Bennett Golub, Co-head of Risk Management and Analytics,
Founding Partner, BlackRock

"An excellent book. This text provides a bridge from the theoretical to the practical, and clears the fog between the buzzwords of risk budgeting and the realities of a useful new portfolio management tool. Pearson’s writing is well balanced between needed academic foundation and the practicalities of managing portfolios."
–Rob Roy, Director, Cash and Investments, Adventist Health System

"I just wish I could summarize this book as ably as Professor Pearson summarizes the voluminous literature on Value-at-Risk. Unfortunately, I suspect no further compression is possible. To reduce the risk of reading rubbish, your best bet is to read this book."
–Dr. Peter Carr, Senior Consultant, Risk Capital Management ... Read more

Reviews (2)

Hands on and rigorous
A very well written book on Risk Budgeting from a modern perspective. VAR methodologies, stress testing and working examples are very well written and a must for anyone wanting to either get into the risk measurement/ management field or an advanced practitioner in the field. I would highly recommend this book for someone wanting to get the both the theoritical and hands on practical approach to risk measurement of equity and fixed income portfolios.

Title and subject don't match.
This is a book on VaR masquerading as a book on Risk Budgeting. I would guess that the publisher changed the name of the book.

There are about fourty pages of three hundred that actually deal with risk budgeting: the first 153 pages are an outline of VaR. Its a fair introduction to VaR, but the title is misleading. ... Read more

Book Description

Monte Carlo simulation has become an essential tool in the pricing of derivative securities and in risk management. These applications have, in turn, stimulated research into new Monte Carlo methods and renewed interest in some older techniques.

This book develops the use of Monte Carlo methods in finance and it also uses simulation as a vehicle for presenting models and ideas from financial engineering.It divides roughly into three parts. The first part develops the fundamentals of Monte Carlo methods, the foundations of derivatives pricing, and the implementation of several of the most important models used in financial engineering.The next part describes techniques for improving simulation accuracy and efficiency.The final third of the book addresses special topics: estimating price sensitivities, valuing American options, and measuring market risk and credit risk in financial portfolios.

The most important prerequisite is familiarity with the mathematical tools used to specify and analyze continuous-time models in finance, in particular the key ideas of stochastic calculus. Prior exposure to the basic principles of option pricing is useful but not essential.

The book is aimed at graduate students in financial engineering, researchers in Monte Carlo simulation, and practitioners implementing models in industry. ... Read more

Reviews (5)

Mathematically disappointing book
Don't be fooled by the name of the Springer series where this book appeared: if you are looking for a nice list of examples and applications, then this book may be ok, but otherwise, this is not the place to look for proofs and rigorous results.

Excellent Read
Very well written book , all you need to know about MC Methods.
If you want to buy one book buy this one, if you have deep pockets then may be you should get the Peter Jaeckal book along with this. There is another introductory book on Simulation by Sheldon Ross.

a great buy
This is the best book I've read in the last year on mathematical finance. It is a tightly focussed text on Monte Carlo methods no more no less. So you won't find things like day count fracs because that's not what it's about.

Glasserman is a true expert on the topic. My highlight was the chapter on variance reduction where the vast amount of detailed knowledge taught me a lot, although I implement monte carlo pricing models on a day to day basis.

Compared to the best, this is average.
This book has a good explanation of Monte Carlo methods, but so do many others. Given that the focus of this book is interest rate models, I must compare it with the best in the field, and this book falls short. The definitive encyclopedia is "Interest Rate Modelling: Financial Engineering" by Jessica James and Nick Webber. Ms. James's Ph.D. in physics and on-line experience shows through in the sound explanation and application of theory.

Glasserman falls down in the actual applications, since some of the key real-world ingredients such as day counts and quirks of the market are missing.

"Interest Rate Modelling" covers these features and more. It also reviews hundreds of publications. All the methods for term structure modeling are clearly discussed, and the authors made improvements on some of the original works. "Interest Rate Modelling" still the standard for serious professionals, and while this book is good, compared to a superior work it only merits 2.5 stars.

Monte Carlo applications and much more!
I just got this book and start reading a few topics of interest like Risk Management. The book covers a lot of material in various financial products (heavy on interest rate products) and disciplines and does a fairly detailed job. It would have been great to have expanded the book to cover some areas more in depth (credit and operational risk), but otherwise this book is pretty comprehensive in terms of Monte Carlo applications. The book also has a nice appendix section that covers stochastic calculus and other topics. I took a course by Professor Glasserman at Columbia University ages ago and the book as well as the course delivers. This book is an excellent reference for any practitioner or academic alike (highly recommended). If you had to choose, I also think this book is better than the Peter Jaeckel's book on Monte Carlo. Enjoy... ... Read more

Book Description

Paul Wilmott Introduces Quantitative Finance is an accessible introduction to the classical side of quantitative finance specifically for university students. Adapted from the comprehensive, even epic, work Paul Wilmott on Quantitative Finance, it includes carefully selected chapters to give the student a thorough understanding of futures, options and numerical methods. New software has been added and sidebars included which explain the mathematics for those less confident in this area.

In praise of Paul Wilmott and his previous works
'It is a serious work that takes the reader all the way from the simplest of notions to the most complicated of recent models. In short it is the most comprehensive and up to date textbook on options that I have seen . . . The style is jocular, but the content heavyweight. ... Who ever heard of a mathematician who could convey the intuition of a result to those with a less complete training in the subject? Wilmott is an exception: he knows when a result is hard to understand and treats the reader in a sympathetic manner. This book is a splendid achievement' The Times Higher Educational Supplement
'..a text which will probably come to rank alongside Fabozzi's collected works of Leibowitz as a comprehensive practical reference source for financial theory. Dr Wilmott is an academic who clearly prides himself on his knowledge of the practical side of finance' Futures and OTC World
'Paul Wilmott has produced one of the most exciting and classic reference volumes on derivatives which is a must for . . . students, practitioners, risk managers' Global Trading
'The style is pedagogical and yet very lively and easygoing. As only great teachers can, Wilmott makes even the most obtuse mathematics seem easy and intuitive' Marco Avellaneda, Professor of Mathematics and Director. Division of Quantitative Finance, Courant Institute of Mathematical Science, New York University
'Paul Wilmott changed my life' David Newton, Manchester Business School
... Read more

Reviews (12)

Master Wilmott
Wilmott's sequence to "Derivatives" is 200 pages and 26 chapters shorter. Does that make it less valuable? Not at all! In fact, rather the opposite. Wilmott managed to improve Introduction to Quantitative Finance nicely. He cut out the exercises, added more graphs and more insightful and funny "Wilmott" explanations. Above all, the supplied CD is a real pleasure for Excel friends who will find loads of examples from the book.

Author leaves gaps in his mathematical derivations
I have been reading this book to try to get a better understanding of Hull's book on Options. Wilmott says he is going to keep the math simple but he often leaves out steps in his reasoning. It may be obvious to him but frequently it has not been obvious to me. In fact, I find Hull's book actually more explanatory and easy to follow on topics like stochastic processes and the creation of Ito's lemma than Wilmott's. This is disappointing as Hull gets pretty detailed in his explanations and could use more examples ( not uncommon for academics). I am not an Einstein so I will and do take out pencil and paper to derive results to make sure I understand. I have not been successful in several instances with this book.

Great Introduction to the subject
Book provides a good foundation in the quantitative finance field.

Excellent as in an introduction to the technical analysis
This book is an excellent starting point for those with no training in the technical aspect of the equities market, although the prime focus is on Derivatives.

Although Derivatives are, as of late, a maligned form of investment, this book delineates a common-sensical approach to evaluating them.

There is a gentle and concise introduction to the mathematics of investments which will please many, but no doubt upset the few purists, especially those who love mathematical rigour and others who would like to retain the mystery and mastery of their universe.

This is an introduction. For those who feel the need to delve deeper, Paul Wilmott has written other books which go into greater depth.

Not close to the best in its class
This book is not close to the best in class. It's collecting dust on my bookshelf. There isn't enough practical information to make it a reason to take it off the bookshelf after purchase and a read through. "Derivatives Markets" by Robert McDonald is a much better written and more satisfying book. Even the paper quality, cover, and layout are better. The chapters have practical and excellent problem sets. McDonald is also a clearer writer with a better command of the subject. ... Read more

Book Description

A step-by-step action plan to quick and lasting recovery after personal bankruptcy.Indexed. ... Read more

Reviews (156)

The Book Works! The FREE Seminar Works, Too!
I attended Stephen Snyder's seminar a year ago in NY. I purchased the book and have used the non-profit organization's services to delete eight items from my credit report. Last month I applied for and was approved a $13,000-limit credit card with 25-day grace period and 9.99% ongoing APR. My FICO scores are up and I can obtain a no-docs mortgage with 10% down whenever I'd like. The book has many important ideas for bankrupt people and I also suggest going to the free seminar. I attended my second one in NJ this month (one year after my first one). I was remotivated and seriously look to continue my financial future. I can't wait for "Business After Bankruptcy" and the new bankruptcy magazine this winter.

UPDATE (10/25/2002):
With the help of Stephen Snyder and his legal services I was able to remove my bankruptcy from Experian. A typical bankruptcy remains on an Experian credit report from 7 - 10 years. I've only had my bankruptcy for 5 years. Pretty impressive!

Amazing advice!
Wonderful! The advice he has given has truly helped me to begin my financial life all over again. The book includes the names of well-respected companies that are willing to work with bankrupt consumers. The helpful hints on how to talk to future lenders and what to bring with you has also made a big difference. I was amazed on how much more information you can get from lenders if you just ask the questions the way he recommends! The author has also gone through a bankruptcy, which gives him much more credibility. I now have a credit card and am about to buy my first house and a new car thanks to the wisdom I received in this book! I also feel secure that I will not end up back in a grim situation as long as I follow his advice.

The book is written in a way that you do not feel ashamed of your bankruptcy. It gives you hope and a solid path for the future instead of reminding you of your failures.

Thanks Mr. Snyder!

Caveat Emptor
There appears to be a dichotomy here between reviewers who have gone to the seminars vs those just relying on the book to fix their credit. What's the point of the seminar if you've already read the book? Or the purpose of buying the book if you've already attended the seminar? The claims coming out of the seminar participants seem wild. Besides, no one should approach bankruptcy without full knowledge of the new laws pending in Congress. As another reviewer pointed out, things have changed in the past 10 years. Having a valid bankruptcy removed prematurely from credit, as another reviewer claimed they did with Steve's help, is extremely illegal if the purpose is to obtain credit fraudulently. I wonder if Steve takes personal checks to repair credit at the seminar -- or whether he requires all cash from the recently bankrupt?

on the road to recovery
I read the review by ebay_princess. Obviously she didn't truly read this wonderful book. Mr. Snyder does not talk down to women. Instead, he encourages husbands to listen to their wives and their "sixth sense." Each chapter is a step to be learned in the recovery process, so no - there is not a graph showing the steps to take. There's way too much information to consider to print it in such a way. There's many ways to establish credit. This book is for people who want to learn the RIGHT way to do it. Mr. Snyder's examples of his previous thinking (that Ford sucks) is written in a humerous way that tells us all to "build a bridge and get over it" if we want to do this the RIGHT way. I would recommend this book to anyone wanting to reestablish their credit, whether bankrupt or not.

CRASH COURSE IN RELIGION?
I should have read the reviews a bit better BEFORE ordering this book! Not only is there NO "step-by-step" guide to repairing your credit, but this man is just plain offensive! He makes sexist pig comments such as how he is the "leader" of his house, but he takes his wife's opinion into consideration....well how nice of him!
I hope no Ford Motor Company employees purchase this book, he also comments on how when he found out a Ford was about the only vehicle he could purchase after bankruptcy they were "scared it would fall apart" being a measly American made vehicle and all. How embarrassing to have to call this man a fellow American!
If you want to read about how jesus saves, women are morons, and american made items are junk, buy this book. Otherwise, start saving your money now and and dont waste your time! I'm selling mine right now (I just got it today) and I feel like i'm ripping someone off by even re-selling this crap! ... Read more

Book Description

STUDY GUIDE FOR Come Into My Trading Room
A Complete Guide to Trading

You can read Come Into My Trading Room: A Complete Guide to Trading in a few days, but you cannot expect to master every aspect of that invaluable book until you work through it. Study Guide for Come Into My Trading Room: A Complete Guide to Trading will help you learn the profitable methods and techniques of Come Into My Trading Room before risking a dollar in the markets.

Study Guide for Come Into My Trading Room: A Complete Guide to Trading parallels the actual book, challenging you at every step with questions that make you focus on all the important areas of trading. Some tests are pencil-and-paper, others have you work with charts, but all prepare you to make crucial decisions.

This Study Guide will:

• Quiz you on the essentials of trading–choosing the markets to trade, finding holes in the Efficient Market Theory, and overcoming common obstacles to success
• Make you aware of psychological blind spots that lead to losing
• Test your knowledge of charting and computerized indicators
• Explore trading systems, day-trading, and advanced concepts, such as Impulse trading and SafeZone stops
• Ask questions about money management, record-keeping, and managing time
• Challenge you with eight case studies where you choose entry and exit points and get graded for your performance

The best trading strategies, techniques, and tools are only as good as your understanding of them. Pick up this Study Guide for Come Into My Trading Room: A Complete Guide to Trading and convert Dr. Elder’s methods into your own powerful and profitable tools. ... Read more

Reviews (2)

May help some people
Like Elder's first study guide, whether this will help you or not depends on your learning style. If you don't trust that you know something until you've taken a test, this book can help. It does an excellent job of pulling out the key topics and quizzing you on them. There are no 'silly' questions here--only the important stuff. On the other hand, if you like to read and underline, then return to the text when you are actually 'doing' the activity, then this book is probably a waste of money. One nit complaint: some of the labeling of chart features is a bit unclear. Since it is sometimes tough to tell which letter goes with which feature, answering some questions is difficult, even when you know the material.

Camp Training to Win the Battle
"Study Guide" parallels the book "Come Into My Trading Room: A Complete Guide to Trading" by Dr Elder. This second book challenging you at every step with questions that make you focus on all the important areas of trading. The best trading strategies, techniques, and tools are only as good as you understand them and use them. So this study book is very practical. Buy this book together with "Come Into My Trading Room" and take your time as you go through the questions and exercises. Only camp-trained soldier may survive the battle and come back alive and victorious.

I highly recommend the book to those who wants to improve the quality of their trading.

Alexander Petrochenkov ... Read more

Book Description

This best-selling introductory survey text provides comprehensive coverage ofall functional areas within the field including management, marketing, accounting, economics, finance, law, and computer information systems. The Seventh Edition integrates an appealing design, innovative features, and extensive revisions to remain both accessible and relevant. Topical issues such as entrepreneurship, gender and diversity, change, social responsibility, and the growth of technology are included throughout to prepare students for today's business environment.

The pedagogical framework continually reinforces the material, and places abstract concepts into a practical context. The combination of chapter-opening cases involving well-known companies, end-of-chapter discussions which reference these cases, Spotlights that provide a visual "snapshot" of factual data, and actual advertisements allows students to understand the material's real-world application. To maintain the length of past editions, sections addressing Risk Management and Insurance have been moved to the appendix, while the appendices on law and government have been merged together. The inexpensive, flexible looseleaf format allows students to organize the material according to their individual needs and class schedule.

• New! E-business issues appear in various discussions, features, and examples throughout including Chapter 4, Navigating the World of E-Business.
• New! Each chapter contains a Using the Internet box, highlighting web sites that address pertinent concepts, companies, or topics.
• New! End-of-part cases feature a video segment, encouraging students to apply learned knowledge in reality-based activities.
• New! A US News and World Report Career Guide accompanies each text, and compiles career-related information and appropriate articles from the magazine including "Charting Your Own Course" and "Flip-of-the-coin Jobs."
• New! The extensive technology package includes several study aids such as a set of 4 Audio CD-ROMs and the Real Deal CD-ROM.

Book Description

Praise for A complete guide to Technical Trading Tactics

"John Person does an excellent job of explaining how to apply technical analysis to the futures markets. Since futures trading is short-term in nature, it demands precision timing tools. A lot of those tools can be found in this new book."
––John Murphy
author of Technical Analysis of the Financial Markets and Intermarket Analysis

"Easy to read and easy to follow, A Complete Guide to Technical Trading Tactics is a book traders will love."
––Larry Williams
Legendary trader and author of Day Trade Futures Online and Long-Term Secrets to Short-Term Trading

"A Complete Guide to Technical Trading Tactics is replete with useful trading tips in a logical format, presented by a seasoned trader with a flair for telling it like it is . . .sure to enrich your pocketbook."
––Larry Pesavento
40-year veteran trader and former member of the CME

"There is a Japanese proverb: ‘He whose ranks are united in purpose will be victorious.’ This book skillfully reveals how to join the most important aspects of technical analysis including my favorite (of course) candlesticks. Covers the spectrum from market mechanics to chart analysis, pivot points (John’s specialty), order placement, and much more. Use this book! It will help you along the road to victory in your trading battles."
––Steve Nison, CMT
President, Candlecharts.com and author of Japanese Candlestick Charting Techniques and The Candlestick Course

"Brilliantly provides succinct descriptions and applications of technical trading techniques, gives a solid overview of the derivatives market, shows how to identify and work with a broker, and presents issues that a trader must face to be successful. A must-read for traders at all experience levels."
––Daniel M. Gramza
President, Gramza Capital Management, Inc.

"John Person provides readers the most valuable commodity they can buy on any exchange: the benefit of his vast knowledge and experience related to trading. His analysis and discussion of pivot points is an especially valuable contribution to trading literature."
––Edward D. Dobson
President, Traders Press, Inc. ... Read more

Reviews (4)

perfect
john is one of the few select people that can explain trading into one book.not only did i learn new techniques from this book but he also reminds me how i should trade.
i highly recommend this book.

Excellent in every way.
I started my career reading books from the likes of John J. Murphy, Steve Nison, McMillan, Elder, Bulkowski, etc...

This book can sit on my shelf in equal company from each of these other great analysts.

Thanks for your insight and guidance John, it is sincerely appreciated.

I especially enjoyed the section on Pivot Points.

Sincerely,
LT

Geat Hidden Jem
This book is a gem... great discussions on the lesser known areas of trading. Of course, this book does a great job of covering the standard indicators in a very well thought out fashion. But the real power J. Person's book lies on the chapters on crowd behavior, and going against the grain of the "talking heads."

I greatly enjoyed this read, and know I will be implementing many of the ideas in my own trading. Trading Tactics is a must read for all, novices as well as seasoned professionals will find something useful within its pages...SB

The great lessons to help you pull the trigger
I think the chapter on Pivots plus the candle stick patterns is one of the smartest and best visual "right side of the chart" indicators I have learned yet. What powerful signals these are. It is awesome to see a that an entire chapter is donated to solutions to the emotional hang ups in trading too! Buy this book it works! ... Read more

Book Description

Winner of the prestigious Paul A. Samuelson Award for scholarly writing on lifelong financial security, John Cochrane's Asset Pricing now appears in a revised edition that unifies and brings the science of asset pricing up to date for advanced students and professionals. Cochrane traces the pricing of all assets back to a single idea--price equals expected discounted payoff--that captures the macro-economic risks underlying each security's value. By using a single, stochastic discount factor rather than a separate set of tricks for each asset class, Cochrane builds a unified account of modern asset pricing. He presents applications to stocks, bonds, and options. Each model--consumption based, CAPM, multifactor, term structure, and option pricing--is derived as a different specification of the discounted factor.

The discount factor framework also leads to a state-space geometry for mean-variance frontiers and asset pricing models. It puts payoffs in different states of nature on the axes rather than mean and variance of return, leading to a new and conveniently linear geometrical representation of asset pricing ideas.

Cochrane approaches empirical work with the Generalized Method of Moments, which studies sample average prices and discounted payoffs to determine whether price does equal expected discounted payoff. He translates between the discount factor, GMM, and state-space language and the beta, mean-variance, and regression language common in empirical work and earlier theory.

The book also includes a review of recent empirical work on return predictability, value and other puzzles in the cross section, and equity premium puzzles and their resolution. Written to be a summary for academics and professionals as well as a textbook, this book condenses and advances recent scholarship in financial economics.

Reviews (19)

Not very accessible
This book might be a good reference for someone who is already intimately familiar with the different asset pricing theories discussed in the book.

This book is definitely not the best book to study to learn about these different asset pricing models for the first time.In other words, it often jumps from one assertion to another without connecting all the dots; those who don't have a fairly extensive background in asset pricing theory are likely to have a hard time bridging many of the transitional gaps in the text.

puzzled by bad reviews
as some other reviewers have said, i'm very puzzled by the bad reviews this book has gotten. this is simply the best discrete time asset pricing text/reference out there. now that the revised version has rid itself of the typos in the old versions, i really can't think of anything wrong with the book. cochrane's style is conversational and intuition based. it's a lot of work to read, but what does one expect? it's a graduate text after all. the only helpful suggestion i can make is to get CLM with this.

Interesting and enjoyable if Asset Pricing interests you
This is a very interesting book for the right audience.It is most often used as a textbook in doctoral courses in finance, not because advanced MBAs cannot read it, but because most MBA courses are taught in ways to create intuitions and use generalized models to teach them.This book is focused more for an audience of what are known as "quants", that is those who focus on quantitative results and rely on and communicate more comfortably via mathematical formulas than trying to capture the ideas in words alone.

Not that this book does not also use intuitions in discussing the various pricing and consumption models.Of course it does.However, it also describes the models via equations and discussions of those equations.The author takes a conversational tone throughout the book.In some ways, if you want a very structured explication of these materials, you might get a tad frustrated.If you have some patience, though, the materials do get covered.

The author does provide a basic list of mathematical prerequisites.He says:"I presume some exposure to undergraduate economics and statistics.A reader should have seen a utility function, a random variable, a standard error, and a times series, should have some basic linear algebra and calculus, and should have solved a maximum problem by setting derivatives to zero."I agree with his last sentence in the preface: "The hurdles in asset pricing are really conceptual rather than mathematical".

Cochrane's order of presentation is different than most texts on asset pricing.He begins with the consumption model and uses it to derive the classic models that MBAs are normally taught (CAPM, ICAPM, and APT).He rightly points out that the order of discovery of useful ideas is not a justification for the order of presentation.The author also uses geometric diagrams to aid understanding.They will aid the development of the proper intuitions for the more general student of finance, but the quantitative types will get all they need from the equations the book provides.

While the book provides discussions of the standard pricing models, the author also provides us with a discussion of his own research, the habit persistence model, in the final chapter (pp 456-73).The model is a refinement of the equity premium by accounting for the effect of agent preferences.

If you are interested in finance at this level, this is book useful and not intensely difficult.I always find it interesting to think through how much of these models describes the way the world should work versus the way the models describe the way the world does work.Everyone has a different view on this subject.To enjoy this book you simply have to have some prerequisites and take some time to actually read it rather than flip through the pages in the hope that understanding can come passively.It will not.

Pretentious
Book is simply the cutting and pasting from other sources.It is poorly exposited and the language is too chatty to be relevant to serious scientists.

Extremely useful for economists
Like some others, I am puzzled by the negative reviews.I have owned Cochrane's book since it came out and have learned much from it and refer to it often.Finance people interested only in derivative pricing, the intricacies of stochastic differential equations, etc., probably won't find what they want here (although these topics are fitted into the overall framework).But for economists looking for links between finance and the rest of economics and econometrics there is a lot here (and a lot that isn't in, for example, Duffie).

The typos are a problem, but errata are available on the web. ... Read more