Investment Science
Buy Investment Science at Amazon
Review
“This is the best single volume on investments ever written. It is one of the only books to cover both derivatives and portfolio optimization, and it does not get bogged down with unnecessary notation. It is a real page turner. For non-finance types looking for a serious, rigorous introduction to the subject, look no further.”–Wayne Winston, Professor of Decision Sciences, Indiana University
“This book is well written, clear, and cohesive. There is not a single investment textbook that I am aware of that gives such in-depth and organized treatment of the topics chosen by this book. A distinguishing feature is that it gives you every single detail and tool that you would ever need to solve problems.”–Raymond Kan, University of Toronto
“Investment Science is a wonderful textbook treatment of investment theory for the quantitatively-minded undergraduate or masters student. This book is typical of David Luenberger’s uncanny way of simplifying complex technical material without loss of rigor. He divides and conquers the subject, starting with the basics of simple fixed-income securities, and building up to the valuation and hedging of derivative securities in a dynamic setting under uncertainty. There is a lovely interplay of arbitrage calculations, portfolio selection for individual investors, and market equilibrium. The book will be especially valuable for those entering the subject from other quantitative fields.”–Darrell Duffie, Stanford University Graduate School of Business
“Options and continuous-time finance are important enough to warrant a whole course in MBA programs. David Luenberger’s book makes continuous time finance accessible to any student who has mastered elementary calculus and probability theory, and motivates the subject by using it to solve a broad range of option-type problems relating to stock, bond, and commodity markets.”–Jack Treynor, President, Treynor Capital Management, Inc.
“This textbook takes a refreshing approach to the science of investing. It is extremely well-written. Financial principles and ideas are laid out clearly and in an orderly fashion.” — Joseph Cherian, Department of Finance, School of Management, Boston University
“The book is very clearly written and introduces advanced concepts (e.g. duration and convexity of bonds) in relatively simple and intuitive ways early in the book. There are lots of carefully thought out examples to illustrate important points and applications of particular methodologies. Overall, the book does a great job of taking a reader who knows essentially nothing about finance from very basic concepts up through rather advanced valuation topics.”–James E. Hodder, University of Wisconsin-Madison
“This text is a breakthrough in the organization of very important theory.”–Lloyd Nirenberg, Director, Business Development, National Semiconductor Corp.
“This book provides great insights and practical approaches for anyone interested in the relation between markets and decisions. It is written in a unique and creative manner.” –Nick V. Arvanitidis, CEO,IDEA GmbH., and Former CEO, Sequus Pharmaceuticals
“Luenberger’s book is very informative and offers genuinely new insights into important investment problems.”–Paul McEntire, Chairman, Skye Investment Advisors LLC
“Professor Luenberger’s book, particularly Chapters 15 &16, lays the foundation for the analytic approach Enron takes when assessing and managing risk in its non-traded asset portfolio.”–Andrea Vail, Vice President, Enron Capital Management
Product Description
Representing a true breakthrough in the organization of finance topics, Investment Science will be an indispensable tool in teaching modern investment theory. It presents sound fundamentals and shows how real problems can be solved with modern, yet simple, methods. David Luenberger gives thorough yet highly accessible mathematical coverage of the standard and recent topics of introductory investments: fixed-income securities, modern portfolio theory and capital asset pricing theory, derivatives (futures, options, and swaps), and innovations in optimal portfolio growth and valuation of multiperiod risky investments. Throughout the book, he uses mathematics to present essential ideas of investments and their applications in business practice. The creative use of binomial lattices to formulate and solve a wide variety of important finance problems is a special feature of the book.
In moving from fixed-income securities to derivatives, Luenberger increases naturally the level of mathematical sophistication, but never goes beyond algebra, elementary statistics/probability, and calculus. He includes appendices on probability and calculus at the end of the book for student reference. Creative examples and end-of-chapter exercises are also included to provide additional applications of principles given in the text.
Ideal for investment or investment management courses in finance, engineering economics, operations research, and management science departments, Investment Science has been successfully class-tested at Boston University, Stanford University, and the University of Strathclyde, Scotland, and used in several firms where knowledge of investment principles is essential. Executives, managers, financial analysts, and project engineers responsible for evaluation and structuring of investments will also find the book beneficial. The methods described are useful in almost every field, including high-technology, utilities, financial service organizations, and manufacturing companies.
Buy Investment Science at Amazon
Tagged with: Investment • Science
Filed under: Worth While Investment
Like this post? Subscribe to my RSS feed and get loads more!
This textbook introduces the basics of asset pricing theory and portfolio optimization at a level suitable to advanced undergraduates. The mathematics seems to be just right for practitioners: no martingales, no girsanov theorem, but a complete treatment of binomial lattices and a semi-quantitative introduction to diffusion processes and to stochastic calculus. Problems are very well chosen. The organization of the text is standard, except for the last two chapters, related to optimal growth portfolio and to real options. Final remark: the book is excellent for self-study. I learnt the subject from Prof. Luenberger himself, and he was repeating each single word from the book, saying (as a disclaimer) that “it’s not me copying the book… it’s the book that copies what I said. After all, I wrote it.” Needless to say, the class was excellent.
This book serves very good introduction to mathematical finance. Particularly,
I enjoyed the discussion of bonds immunization, mean-variance theory, CAPM, APT.
It’s most suitable for senior undergraduates or any junior graduate students.
But it doesn’t deserve 5 star for the following reasons:
1) Most of the theories discussed so far in the book are TOO idealized and
over simplified. Financial data is dynamic and massive. In model quantitative/computational finance, the most important thing is to understand what the data says rather than what one thinks the data structure might be. With the book, one probably can only do some macroeconomic/very coarse analysis. Author should incorporate more data analysis evidence together with proposed theories.
2) The proof of ito’s lemma is wrong(i.e. “Deltaz^2 –> deterministic as Deltat –> 0″). It’s surprising since most books make the same mistake. It is the law of the large number contributes to the equality!(i.e. integration sense). The misunderstanding of the proof might lead to the misunderstanding of the hedging process.
3) In the commodity option pricing session, author demonstrated the use of futher market to price the option. This should be discussed further (i.e. black’s model).
4) The volatility pumping session should be further researched. The explanation is
not satisfactory.
This is the best book by far on the theory of finance. The book covers all the important fundamental concepts and develops them into practical models without going overboard and introducing every possible variation on the model. the style is both conversational and mathematical. It is replete with discussions about the material, but it doesnt gloss over the math. I took professor Luenbergers course at Stanford, and it piqued my interest in finance enough to pursue it professionally. (At the time, I was a masters student in electrical engineering.) I purchased several other books in finance. I dont even know where they are now, every time I have a question or need to build a new model, I go straight to Luenberger. This book is so good, I bought a second copy just as a backup, in case I lose my copy and the book goes out of print.
A $240 million investment seemingly can only go so far. Two years after Microsoft (NSDQ: MSFT) bought a 1.6 percent stake in Facebook and more than three years after it announced a deal to sell advertising on the site, the two companies are scaling back their relationship. Microsoft executives tell BusinessWeek that the company will no longer be selling display ads on Facebook in some international markets and may soon not be selling any display ads on the site whatsoever.
Well, and we already have EBSCO products, but I’m not sure if we’ll be able to add any more. They know they’ve got us, and I’m sure will charge accordingly.
Populism simply asks that the Nations rewards be shared with the populous. David Brooks does not admit: Conservatives always absolve the Rich and Powerful from any responsibility. One of the first acts of the Bush Administration was to remove the Employee Stock Options Tax advantage, which was at the time actively pro-employee reward for labors actions, in its use. And then Bush and the Republicans gifted the Rich and Powerful thru Tax advantages to their investment vehicles.
Yelp Inc. now has another thing in common with social-networking site Facebook Inc. and online gaming company Zynga Inc. Besides being a fast-growing, venture-backed Internet company, the local-business review site has opted to receive an investment from a private equity firm that gives its employees a chance to partly cash out – and the company more breathing room to remain private.
RT "engineering is the science and art of applying scientific and mathematical principles experien…
Kevin, even though I agree with you, nuclear would still have been a better way to go than coal. (Stupid Gore…)
Nice try. Keep it up check out esteembpo + com for social media marketing. HJYH
If You Like 80’s Music, Check Out My 80’s Channel.
Although this is science, I think that the methods of experimentation could have been carried out better. In the beginning, it says that size does matter, and that the bigger the puncher, the more massive the whiplash. Since the martial artist performing the kung fu double kick is not as big as the others performing the tae kwon do spinning back kick or the muy thai knee strike, it makes sense that his may not be as powerful.
Calendar Of Investment-Grade Debt: Agency Bills
RT Super Rare 91 Henschke Hill Of Grace 6L Methuselah: Currently $55K Ends in 14hrs <- Investment!?
I liked nothing on FF in the last century.
Peru : Repsol, Hunt Plan $1.5B Peru Investment – Emii.com -
a LOT of people buy on ebay. there are a lot of transactions on ebay as well.
A barrel of gasoline.
A well-thought-out business plan is essential when applying for a loan to buy rental income property.
Optimism is good, but when it comes to buying a rental property, it’s better to be realistic. The promise of what investors call “unearned income” is enticing, but it’s important to be aware of how much of your tenant’s rent check will be eaten up by overhead.
That’s why every potential buyer of a rental property needs a business plan. When you look for financing, a well-thought-out plan will improve your standing in the eyes of potential lenders.
First, determine your initial outlay, or what it will cost to acquire the property and get it ready for tenants. This amount, minus whatever down payment you have, is the amount you will need to borrow. It includes:
* the purchase price of the property
* any renovations and improvements, including permits
* a home inspection and/or appraisal
* the real estate agent’s and lawyer’s fee
Then you’ll need to estimate your monthly expenses, or what it will cost to maintain the property:
* mortgage and interest payments
* property taxes
* insurance
* utilities (not including those expenses you’ll charge tenants)
* administrative costs (office supplies, transportation, etc.)
* management fee (if you’re hiring someone else to look after the property)
* maintenance and upkeep
* classified advertising
This total will tell you how much rental income you’ll need to make the property profitable. This is fairly simple if you’re just renting out one apartment, or even a whole house. If you have several units to rent, your market research may take some time. You’ll have to compare your figures with rents for similar properties in your neighborhood to see if you will be competitive. Your city may also have regulations that limit how much you’re allowed to charge.
Once you’re confident that your rental income will exceed your operating costs, you’ll want to consider the long-term outlook, or how the numbers will change over the life of your investment. Consider factors such as:
* inflation
* the appreciation or depreciation of the property
* interest rates on your loan
Of course, these are difficult to predict accurately. As long as you understand your city’s rent control regulations, you should be able to forecast how much your rental income will rise over the years.
There are some common pitfalls in rental property business plans. Perhaps the most common is underestimating the amount of money you’ll spend on maintenance and upkeep. Your monthly estimate should budget for the major repairs that will inevitably come your way. Remember, too, that tenants don’t always pay on time. Think about how your cash flow will be affected by a late check or two — will you need a line of credit to sustain you, and can you afford the interest charges that accompany it?
A spreadsheet can give you a rough tally of these figures. Once you’re ready to look for financing, you may want to purchase books or software with business plan templates to make your document look more professional, and to make sure you haven’t left anything out.
52
RT Earth Science Picture of the Day: Near-Earth Object 2010 AL30
Real Estate news | China Real-Estate Investment Rose 16.1% in 2009, Ministry Says: March 8 (Bloomber… | Read More…
While a degree in any discipline is acceptable, many companies prefer related subjects such as accounting, economics, mathematics or statistics. Increasingly, entrants have a Masters degree such as an MBA or MSc in a related subject. A second language is also extremely useful.
The following qualifications may be useful as a first step:
The 14-19 Diploma in business, administration and finance
BTEC Certificates and Diplomas in business and finance subjects
City & Guilds qualifications in business and finance subjects
IFS Certificate or Diploma in financial studies.
An investment banker's tasks could include:
advising clients how to raise finance to expand their business
arranging loans to fund expansion
advising clients on merging with or taking over other businesses
arranging financial backing for new businesses
managing the investments of business and private clients which can total billions of pounds
taking action to protect businesses from changes in currency exchange rates and interest rates
trading in stocks and shares, securities and bonds
buying and selling large property developments.
More information:
http://www.connexions-direct.com/Jobs4U/index.cfm?pid=50&catalogueContentID=281&render=detailedArticle
100% Free – 0 Investment – Produce MONEY in 30-90 Days – It can be done check this out
Become a stock broker. Build a successful and happy clientele. Move up into the retail and investment banking groups. Keep building your happy clients. After 10-20 years, break away to start your own operation and take clients with you. If you're consistently good at selecting profitable investments than your track record will attract money. Then you'll have 401k managers, credit unions and other institutional investors prepared to put in tens or hundreds of millions of dollars. Basically, this is a lifetime ambition like running for president. It starts from college.
Filed under: EV/Plug-in, Europe/EU Heuliez, the small French contract automaker who’s future has been uncertain for the past year, has finally had the winter clouds above its head give way to sunshine and has (likely) been heard saying “Le printemps est arrivé!” Indeed, spring has arrived for the employer of 600 in the form of an investment agreement from Brightwell that will see the company on the receiving end of €30 million (U.S. $41.29 million at today’s rate) all told from that firm and government sources. It is hoped the infusion will help the 90-year-old company continue on its recent course of renewal that has seen it take on some impressive new talent (Murat Günak and David Wilkie from Mindset) and launch its newest model, the Mia. Look familiar? Yes, the boxy 3 + 1 that was previously known as the Friendly has undergone some small changes and now carries the Mia appellation. Orders are now being taken at its website for October 2010 delivery of the city-friendly (ahem)…
Invest Rs. 2 lakhs in Gold.
Invest Rs.2 lakhs in Post officeSavings.
Invest Rs.2 Lakhs in Shares of Reliance Industries and L&T
Invest Rs.2 Lakhs in Bank Fixed Deposit
Invest Rs.2 Lakhs in Mutual Funds Scheme
Kolkata, Mar 28 (PTI) Indian investors may expect some investment sops and level playing field in Bangladesh in the new Industrial Policy of the neighbouring
USCG has the marine science technician rate . MSTs are mostly stationed at marine safety units overseeing spill clean ups and conducting facility inspections and inspecting commercial ships. There's are few MSTs onboard polar-class ice breakers and a few at the USCG Marine Safety Lab doing chemistry stuff. Officers work at the marine safety units but they're farther away from the action, directing the enlisteds who are directing the clean up effort. At the small marine safety units, officers are part of the ship inspection team. Other rates are stationed at marine safety units but they're just as likely to be assigned to a cutter or a small boat search and rescue (SAR) station where as MSTs don't have any assignments on cutters and SAR stations.
USCG also has health service technicians (another enlisted rate) doing medical stuff —
Is a computer-related rating close enough to science?
What about avionics technician?
Electronics technician, electrician's mate and aviation maintenance technician might be options — http://www.gocoastguard.com/find-your-fit/enlisted-opportunities/enlisted-rating-descriptions
coondoggie writes “The European Space Agency is moving forward with a plan to land an autonomous spacecraft on the moon by 2017, with the idea a manned vehicle could land there sometime in the future. It’s a mission NASA had on its roadmap before the current budget debate, but such plans seem doomed now. The ESA is now seeking proposals for a Lunar Lander that would land on the south polar region of the Moon where possible deposits of water ice, heavily cratered terrain, and long periods of sunlight make it ripe for explorers and scientists, the agency stated.”
Read more of this story at Slashdot.
Safe Property Buying and Investment Planning #RealEstate Blog Post http://www.realestateindia.com
wow – talk about promoting blind faith. as if science has no limitations and truth can only be found in materialism. science is a good thing, but not when it presents itself as all-knowing.
scamartist like his buddy george4title
Science is the systematic attempt to construct an explanatory framework for sensory input.
Quick! Google ‘God: hidden science’
: Investment Banking Interview Guide | IBInterviews.