Invest in science

Author: Robert C. Merton
Publisher:
Publish Date: 2004-09-01
Features: This book can serve as a textbook and reference for economics and management majors in Chinese universities, as well as a suitable supplementary book for a wide range of economic and financial professionals and managers at various levels to study the basic theories and methods of modern investment. Written by the renowned professor at Stanford University, Robert C. Merton, "Investment Science" is as highly favored by readers at home and abroad as "Investments" by Zvi Bodie et al. and "Investments" by William Sharpe et al., all of which are widely used investment textbooks. The publication of the English reprint edition of this book allows Chinese readers to enjoy the authentic content. Compared to the other two books, the main features of this textbook lie in: its content is not as all-encompassing as typical investment textbooks, but instead focuses on systematically discussing the fundamental theories and methods of asset pricing in financial markets, highlighting the important role of the basic theories of derivative securities such as options and futures in the curriculum. What is particularly valuable is that the textbook uses numerous examples and diagrams throughout to explain various financial issues, making them both vivid and easy to understand. It is worth noting that the book places special emphasis on the numerical calculation methods of asset pricing theory, such as the binomial lattice method, which are often overlooked in general investment textbooks but are given sufficient attention here. Through a variety of rich and diverse examples, the book explores more general investment issues such as real options, which is another highlight, as real options are one of the current hot topics in the field of finance. At the same time, the book systematically discusses the important role of log-optimal strategies in asset pricing and portfolio decision-making. The book is divided into four parts and 16 chapters. Part I discusses certain cash flows, Part II discusses single-period stochastic cash flows, such as fixed-income securities theory and single-period asset pricing theory. Part III discusses the theories of derivative securities such as options and futures, and Part IV discusses general cash flow issues.