Zvi Bodie, Alex Kane, and Alan J. Marcus have produced the most popular portfolio management and investments textbook, which is simply titled, “Investments,” for graduate students. This team of Bodie, Kane, and Marcus have been writing corporate finance/investment textbooks since 1980.
GraduateTutor.com provides finance tutoring for all their textbooks, including the most famous ones, Investments and Essentials of Investments. Other popular corporate finance textbooks we tutor include The Fundamentals of Corporate Finance and Principles of Corporate Finance textbook by Brealey, Myers, and Allen as well as Corporate Finance and Fundamentals of Corporate Finance by Ross, Westerfield, Jaffe and Jordan.
The portfolio management and investment textbooks, “Investments” and “Essentials of Investments” written by Bodie, Kane, and Marcus, are published by McGraw Hill and recognized as popular textbooks for MBA and other graduate-level investment courses. Most MBA and other graduate and undergraduate programs use the Investments textbook or one of the Bodie, Kane, and Marcus team’s textbooks for an intermediate or advanced finance elective rather than for the core finance program. The page covers the following topics with regards to The portfolio management and investment textbook “Investments” by Bodie, Kane, and Marcus.
- Investments Textbook and the CFA Program
- Why We Offer Tutoring for Bodie, Kane, and Marcus
- “Investments” by Bodie, Kane, and Marcus Is Not for You IF:
- Other Finance & Investment Books by Zvi Bodie
- Teaching Plan / Structure of “Investments” by Bodie, Kane, and Marcus
- Introduction to financial markets and investment opportunities
- Portfolio Theory and Practice
- Equilibrium in Capital Markets
- Fixed-Income Securities
- Security Analysis
- Options, Futures, and Other Derivatives
- Applied Portfolio Management
- Different Editions of “Investments” by Bodie, Kane and Marcus
- Our Finance Tutors Summary on Investments by Bodie, Kane, and Marcus
- Finance Tutoring For Investments by Bodie, Kane, and Marcus
The portfolio management and investment textbook “Investments” by Bodie, Kane, and Marcus offers an optimal mix of practical and theoretical coverage and maintains necessary rigor and clear writing. The textbook is intended primarily for courses in investment analysis. This financial knowledge is essential for both investment professionals and sophisticated individual investors.
The authors Bodie, Kane, and Marcus have made every attempt to strip away unnecessary mathematical and technical details. Instead, the Investments textbook provides intuition that guides MBA and other graduate students. Another thing that differentiates this book is that it offers a much broader and deeper treatment of futures, options, and derivatives than most investment texts, which is very important in view of the rapidly increasing influence of these markets.
Investments Textbook and the CFA Program
For students working towards becoming investment professionals and making an extra effort to master the subject, many features of this textbook make it consistent with and relevant to the CFA curriculum. This textbook may have content that goes beyond the CFA program. So technically you do not need the textbook, “Investments,” by Bodie, Kane, and Marcus for your CFA program but it will help you go beyond.
End-of-chapter exercises contain problems from past CFA exams. In addition, the book is supplemented with a comprehensive set of spreadsheets and other analytical tools. This graduate text on investments and portfolio management offers an online homework management system, McGraw-Hill’s Connect Finance. The finance textbook Investments has been translated into Japanese, Chinese, Korean, Portuguese, Bulgarian, and Hungarian.
Why We Offer Tutoring for Bodie, Kane, and Marcus
- In-Depth Coverage: Bodie, Kane, and Marcus’s finance textbook Investments provides significantly more depth than most other textbooks on the selected topics.
- Comprehensive in breadth: The Investments textbook by Bodie, Kane, and Marcus provides adequate coverage of key topics in investments and portfolio management. It covers modern portfolio theory and the Capital Asset Pricing Model (CAPM), which form the foundation of portfolio management, as well as more advanced finance and investment topics such as options, futures, and alternative investments.
- Clear Explanations: Bodie, Kane, and Marcus do an excellent job of explaining complex topics, such as derivative pricing and risk management. These topics are explained with diagrams and examples.
- Real-world examples: Throughout the Investments textbook, the authors Bodie, Kane, and Marcus give MBA students examples of real-world applications and case studies.
- Up to date: Bodie, Kane, and Marcus’s finance textbook Investments include modern topics like behavioral finance, fintech, etc.
- Problem Sets and Learning Resources: Each chapter in the finance textbook Investments comes with a good set of practice problems and review questions, which helps MBA students practice what they have learned and test themselves.
“Investments” by Bodie, Kane, and Marcus Is Not for You IF:
- Not For Beginners: The finance textbook Investments by Bodie, Kane, and Marcus is not recommended for beginners because the volume of content and depth might be overwhelming for beginners. An introductory finance textbook, “Principles of Corporate Finance” or “Fundamentals of Corporate Finance” by Brealey, Myers, and Allen, may be better suited.
- Don’t want to get Quantitative: The finance textbook Investments by Bodie, Kane, and Marcus is heavy on quantitative analysis. A more qualitative approach may be better for less mathematically inclined students.
Other Finance & Investment Books by Zvi Bodie
Essentials of Investments: Co-authored with Alex Kane and Alan J. Marcus, offers a concise version of their classic textbook Investments. It is essentially an introduction to investment principles and emphasizes fundamental concepts and practical applications. This book is published by McGraw-Hill Education, and it’s the 13th edition in 2024 (ISBN: 9781265062002) and incorporates content topics like stakeholder capitalism and ESG investing, developments in fintech, cryptocurrencies, and other digital assets.
Financial Economics is another book by Ziv Bodie, which he co-authored with Nobel laureate Robert C. Merton. This book deals with the intersection of finance and economics. It explores topics like asset pricing, risk management, and financial markets. Financial Economics was published by Pearson/Prentice Hall, and its 2nd edition in 2009 (ISBN: 9780131856158) balances optimization of value over time, asset valuation, and risk management.
Risk Less and Prosper: Your Guide to Safer Investing is another book by Ziv Bodie, co-authored with Rachelle Taqqu. This book provides strategies for investors to manage risk and achieve financial security.
Worry-Free Investing is another book by Ziv Bodie, co-authored with Michael J. Clowes. Published by Financial Times /Prentice Hall, this book discusses investment strategies aimed at minimizing risk and ensuring financial stability.
Teaching Plan / Structure of “Investments” by Bodie, Kane, and Marcus
Introduction to financial markets and investment opportunities
Part one of “Investments” by Bodie, Kane, and Marcus introduces MBA students to financial markets and various types of investment opportunities, asset classes, and financial instruments. Chapter 1 provides an overview of the investment landscape. Chapter 2 covers various types of investment assets, such as stocks, bonds, and derivatives. Chapter 3 explains how securities are traded, detailing the mechanisms of financial markets. Chapter 4 focuses on mutual funds and investment companies, pooled investment vehicles, and their structures. This part lays a strong foundation for understanding the financial markets and investment opportunities.
Portfolio Theory and Practice
Part II of “Investments” by Bodie, Kane, and Marcus focuses on risk, return, and diversification. Chapter 5 examines historical data to illustrate the relationship between risk and return. Chapter 6 explores how to allocate capital to risky assets in a portfolio. Chapters 7 and 8 discuss efficient diversification and index models, respectively. This helps investors optimize portfolios by balancing risk and return. By the end of this part, readers understand how to construct and manage a diversified portfolio.
Equilibrium in Capital Markets
In Part III of the “Investments” textbook, the authors Bodie, Kane, and Marcus cover the concepts that drive capital markets. Chapter 9 covers the Capital Asset Pricing Model (CAPM), a framework for understanding the trade-off between risk and return. Chapter 10 introduces the Arbitrage Pricing Theory and multifactor models, expanding on CAPM to address additional risk factors. Chapter 11 explores the Efficient Market Hypothesis, while Chapter 12 examines behavioral finance and technical analysis. Chapter 13 rounds out the section with empirical evidence on security returns.
Fixed-Income Securities
Part IV of the Investments textbook by Bodie, Kane, and Marcus covers fixed-income securities. The authors start with bond pricing and yields in Chapter 14. Chapter 15 discusses the term structure of interest rates, offering insights into how interest rates vary with different maturities. Chapter 16 discusses bond portfolio management, strategies for managing interest rate risk, and maximizing returns on bond investments.
Security Analysis
Bodie, Kane, and Marcus cover valuation in Part IV of the Investments textbook. This part provides MBA students with a solid understanding of security analysis. Chapter 17 covers macroeconomic and industry analysis. Chapter 18 introduces equity valuation models, offering frameworks for determining the intrinsic value of stocks. Chapter 19 discusses financial statement analysis.
Options, Futures, and Other Derivatives
In Part VI of the “Investments” textbook, the authors Bodie, Kane, and Marcus cover options, futures, and other derivatives. Chapter 20 starts with an introduction to options markets. Chapter 21 explains option valuation, including the Black-Scholes model. Chapter 22 discusses futures markets, and Chapter 23 examines futures, swaps, and risk management. This part is particularly valuable for MBA students interested in advanced financial instruments and risk management techniques.
Applied Portfolio Management
The final part, part seven of the Investments textbook by Bodie, Kane, and Marcus, focuses on applying portfolio management principles in the real world. Chapter 24 covers portfolio performance evaluation. Chapter 25 discusses international diversification, highlighting the benefits of investing globally. Chapter 26 explores alternative assets, such as real estate and commodities, while Chapter 27 introduces the theory of active portfolio management. Chapter 28 concludes with investment policy and tools for developing a long-term investment strategy.
Different Editions of “Investments” by Bodie, Kane, and Marcus
Here’s an overview of the editions, their publication years, and notable changes introduced in each:
- 1st edition (1980): Bodie, Kane, and Marcus wrote the first edition in 1980 and provided the foundational concepts of investment theory, which covered portfolio construction, asset pricing, and market efficiency.
- 2nd edition (1986): The second edition of the textbook Investments added options and futures markets, given its growing importance in financial markets.
- 3rd edition (1993): Bodie, Kane, and Marcus added international finance in the third edition, given the globalization of investment portfolios.
- 4th edition (1999): The fourth edition of the textbook Investments Incorporated behavioral finance insights, addressing how psychological factors influence investor behavior and market outcomes.
- 5th edition (2002): The authors Bodie, Kane, and Marcus added content on fixed-income securities in the fifth edition. Topics added included bond pricing, interest rate risk, and immunization strategies.
- 6th edition (2005): The sixth edition of the textbook Investments introduced alternative investments, such as hedge funds and private equity.
- 7th edition (2008): The authors Bodie, Kane, and Marcus added discussions on the 2007-2008 financial crisis. This included its causes, effects, and potential new regulations and its implications for investment strategies.
- 8th edition (2010): The authors Bodie, Kane, and Marcus added content on risk management techniques, derivatives, and Value at Risk (VaR).
- 9th edition (2013): The ninth edition of the textbook Investments Included new material on the impact of technological advancements, such as high-frequency trading and algorithmic trading in financial markets.
- 10th edition (2014): The authors Bodie, Kane, and Marcus focussed on asset allocation and introduced new tools for portfolio management, reflecting evolving investment practices in the tenth edition.
- 11th edition (2018): The eleventh edition of the textbook Investments by Bodie, Kane, and Marcus introduced environmental, social, and governance (ESG) factors in investment decisions.
- 12th edition (2020): The twelfth edition of the textbook Investments added more fintech innovations, including cryptocurrencies and blockchain technology.
- 13th edition (2024): The authors Bodie, Kane, and Marcus introduced content stakeholder capitalism and ESG investing in the thirteenth edition.
Portfolio Management & Investment Text Book “Investments”: Author Backgrounds
Zvi Bodie
Zvi Bodie is a professor of finance and economics at Boston University School of Management. He holds a PhD from MIT and has been part of the finance faculty of Harvard Business School and MIT Sloan School of Management. Professor Bodie has published widely on pension finance and investment strategy in leading professional journals. His books include Worry-Free Investing: A Safe Approach to Achieving Your Lifetime Financial Goals, Risk Less and Prosper: Your Guide to Safer Investing,, The Future of Life-Cycle Saving and Investing, etc. Professor Zvi Bodie’s book Financial Economics was co-authored with Nobel Prize winner Robert C. Merton and David Cleeton. Professor Bodie is a member of the Advisory Board of the Pension Research Council.
Professor Ziv Bodie has his own website through which he hopes to “provide trustworthy and helpful information about finance and investing to ordinary people everywhere.”
Alex Kane
Alex Kane is professor of finance and economics at the Graduate School of International Relations and Pacific Studies at the University of California, San Diego. He finished his Ph.D. in finance and economics from the Stern Graduate School of Business, New York University in 1980, his M.B.A. from the Graduate School of Management, Hebrew University in 1973 and his B.A. in economics and statistics from the Hebrew University in 1970. Professor Alex Kane was 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. An author of many articles in finance and management journals, Professor Kane conducts research mainly in corporate finance, portfolio management, and capital markets, most recently in the measurement of market volatility and the pricing of options. Professor Kane is the developer of the International Simulation Laboratory (ISL) for training and experimental research in executive decision making.
Alan Marcus
Alan Marcus is professor of finance in the Wallace E. Carroll School of Management at Boston College. He received his PhD in Economics from MIT in 1981. Professor Alan Marcus has authored tremendously successful finance books with two teams 1) Zvi Bodie and Alex Kane 2) Richard A. Brealey and Steward C. Myers. Professor Marcus recently has been a visiting professor at the Athens Laboratory of Business Administration and at MIT Sloan School of Management and has served as a research associate at the National Bureau of Economic Research. He also established the Chartered Financial Analysts Review Program at Boston College. Professor Marcus has published widely in the fields of capital markets and portfolio management, with an emphasis on applications of futures and options pricing models. His consulting work has ranged from new product development to provision of expert testimony in utility rate proceedings. He also spent two years at the Federal Home Loan Mortgage Corporation (Freddie Mac), where he developed models of mortgage pricing and credit risk, and he currently serves on the Advisory Council for the Currency Risk Management Alliance of State Street Bank and Windham Capital Management, Boston. (Source: McGraw-Hill)
Our Finance Tutors Summary on Investments by Bodie, Kane, and Marcus
Overall, Investments by Bodie, Kane, and Marcus is an authoritative text in finance that offers a thorough exploration of investment theory and practice. Its comprehensive nature, combined with practical applications and a focus on contemporary issues, makes it ideal for finance students aiming to build a strong foundation in investments. Although the level of detail and quantitative focus may be challenging for beginners, for those willing to engage with the material, it offers invaluable insights and prepares readers for real-world applications in finance and investment management.
Finance Tutoring For Investments by Bodie, Kane, and Marcus
GraduateTutor.com provides finance tutoring for Bodie, Kane, and Marcus’s textbooks, including the most famous ones, Investments and Essentials of Investments. Other popular corporate finance textbooks we tutor on include The Fundamentals of Corporate Finance and Principles of Corporate Finance textbook by Brealey, Myers, and Allen as well as Corporate Finance and Fundamentals of Corporate Finance by Ross, Westerfield, Jaffe and Jordan. Email care@graduatetutor.com or call us or simply fill out the sign up form below to start live one-on-one finance tutoring using the Bodie, Kane and Marcus ‘Investments’ text books or other investment and finance titles such as ‘Essentials of Investments’ and ‘Investments and Portfolio Management’.