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Financial Economics (Prentice Hall Series in Finance) [Hardcover]

Zvi Bodie , Robert Merton , DAVID CLEETON
3.0 out of 5 stars  See all reviews (4 customer reviews)

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Book Description

7 Feb 2008 0131856154 978-0131856158 2

For undergraduate and graduate courses in corporate finance, financial management, and financial economics.



Financial Economics is an introductory text intended for use in the first finance course.  It has a broader scope and a greater emphasis on general principles than most other introductory level texts in finance, which typically focus exclusively on corporate finance.  This text encompasses all the subfields of finance — corporate finance, investments and financial markets and institutions — covering the general principles to provide students with an appreciation of the whole discipline’s subject matter. 



This book seeks to explain finance through its functions rather than its institutions, concentrating on the three pillars of finance: optimization over time, asset valuation, and risk management.

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Product details

  • Hardcover: 500 pages
  • Publisher: Prentice Hall; 2 edition (7 Feb 2008)
  • Language: English
  • ISBN-10: 0131856154
  • ISBN-13: 978-0131856158
  • Product Dimensions: 20.3 x 2.6 x 25.4 cm
  • Average Customer Review: 3.0 out of 5 stars  See all reviews (4 customer reviews)
  • Amazon Bestsellers Rank: 5,553,834 in Books (See Top 100 in Books)
  • See Complete Table of Contents

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Customer Reviews

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Most Helpful Customer Reviews
3 of 3 people found the following review helpful
1.0 out of 5 stars Very basic 11 Jan 2010
By lex
I am sorry to say, but for me the book looked as having very little or almost no value added. These kind of books are rather high-school rather than university level. Please make sure you know what you are buying before making your decision.
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5.0 out of 5 stars Integration of Finance and Economics very useful 26 Jan 2012
The textbook is unusual. In US universities, Finance is usually taught in MBA/ undergrad business curricula. Economics is usually taught macro/ micro with financial economics a small part.

The result is the student never gains a proper picture of finance as it fits into the broader whole of economics.

Bodie & Merton is the only textbook I know which integrates the two closely (Robert Merton won the Nobel Prize in Finance for his work on option pricing; Zvi Bodie is an accomplished academic and writer on personal finance).

That gives a better understanding of the role of capital markets, and how tools like CAPM/ wacc fit in to the picture.

The book is also fairly light on the heavy mathematics ie calculus, particularly in contrast to traditional 2nd year microeconomics textbooks. And also say in contrast to the Finance textbook of Copeland and Weston (which is excellent, but much more mathematical).

So it's an ideal 'bridge' to finance by someone who has first (and possibly second) year economics, or to the broader picture for someone in a business school stream who needs to understand the 'bigger picture' of finance in economics.
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0 of 1 people found the following review helpful
1.0 out of 5 stars Terrible quality of the item receved 9 Feb 2012
By Evgenia
When I purchased the item, it was described as been used, but the condition was excellent. In fact I got used by seven generations book, which contained lots of writings inside.....
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0 of 6 people found the following review helpful
5.0 out of 5 stars Fast Delivery 17 Nov 2009
By C. Lee
Fast Delivery - I received the product two days later!
And the book is new as said. Nice!
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Most Helpful Customer Reviews on Amazon.com (beta)
Amazon.com: 3.4 out of 5 stars  5 reviews
8 of 8 people found the following review helpful
5.0 out of 5 stars A solid introduction 14 April 2010
By Aaron Stevens - Published on Amazon.com
I like Financial Economics very much. I assigned several chapters from this book to my EC171 students at Boston University. The introductory chapters about the time value of money and interest and inflation are clear and accessible for our students.

While another review bemoans the lack of formulas in the chapters (I believe the formulas were well explained), I loved that the book went so far as to explain with examples how to use Microsoft Excel's financial functions to perform all necessary calculations. For my students (who are from the arts and sciences, not the school of engineering) clear instructions on using Excel is a more important benefit than more algebra.

In my experience, most introductory finance texts have too much of a corporate finance worldview. Financial Economics is a more balanced toward the needs of individuals making decisions. Without compunction, I recommend this text for introductory finance classes.
6 of 6 people found the following review helpful
5.0 out of 5 stars Excellent Intro 13 April 2010
By Michael J. Zwecher - Published on Amazon.com
Introductory books are a lot like sports that have compulsory and freestyle segments. In all intro books there's a core of material that needs to be covered (in pretty much a prescribed fashion) and then there is the freestyle component that either soars or sinks like lead. This book hits all of its marks on the compulsories then excels in the freestyle segments.

This book covers the fundamentals in a way that is cohesive, coherent and engagingly constructed. The prose sets the right tone; the math that is used remains in service of the point being made without overshadowing; the short inline anecdotes reinforce the themes and make for an entertaining read. Having taught both undergraduate and graduate courses on investments, I like this book on the strengths of its fundamentals.

The real value of the book, over many other intro books, is the material that goes beyond the compulsory. For example, chapter 5 covers the investment problem at the fundamental level of the choice between saving and consumption; a pet peeve of mine is when investments texts ignore the *purpose* of the portfolio. Chapter 16 covers options in a way that is accessible and correct; again here the math is the servant, but not the master, of the ideas promulgated. Finally, Chapter 17 on real options comprises the last chapter that any course syllabus has as an aspirational goal; well written and informative, students will *want* to read this chapter even if the course ends too soon.

In short, this is a great book to have, read and use.
3 of 3 people found the following review helpful
5.0 out of 5 stars A solid textbook for learning and reference 14 Nov 2010
By Kent Smetters - Published on Amazon.com
As a professor at The Wharton School, I am often asked for a recommendation for an introductory finance textbook by friends, incoming students as well as even former students who want a good reference for their jobs. My usual response is Bodie, Merton and Cleeton. It strikes the right balance between being comprehensive, intuitive and succinct. To be sure, I have known and admired the authors for many years; they have defined much of the field that they discuss. But I am pretty picky about the books that I recommend to friends and students. This one gets it right.
1.0 out of 5 stars Garbage Quality 12 Sep 2014
By Jeremy - Published on Amazon.com
Format:Paperback|Verified Purchase
I'm beginning my course in financial economics, I've just started with this book. The quality is terrible. For this ridiculous price, I would expect a quality textbook, not a cheap paper-back with terrible ink. The text is light and difficult to read, the text isn't centered on the page, and the chapters aren't numbered. This is the sort of thing I expect from a $40 international version of a textbook, not the $160 official book.
2 of 5 people found the following review helpful
1.0 out of 5 stars Difficult and Frustrating. 8 Jan 2011
By Amazon Customer - Published on Amazon.com
I am amused by the professors who rate this book so highly; have you ever followed up with those to whom you recommended the book?

While working through this text for a distance education course, I am finding it a difficult and presumptuous book which introduces concepts and formulas without any explanation as to what the parts mean. Seemingly from out of nowhere, numbers are thrown into formulas without explanation of their meaning or even where they come from. The end of chapter questions are of extreme difficutly at times, trying to trick and outsmart you rather than re-enforcing concepts. Expectation of previous knowledge of the workings of financial concepts and markets make parts of this text impossible to understand without outside help.

For an introductory text, this one does an extremely poor job of explaining the concepts. From the perspective of a student and not a professor to whom these concepts should be elementary, this is a difficult and poorly geared text that is nowhere near "high-school level."
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