Capital Ideas Evolving @ richardeward.com

Capital Ideas Evolving
by Peter L. Bernstein
from Wiley

Customer Reviews:

• Avg. Customer Rating: 4.0 / 5.0

• Capital Ideas Evolving
  This was not an easy read, but it was worth it. I received my MBA in 1976. Much of this book was an explanation of the effects of the Capital Asset Pricing Model (CAPM) on current investment practices. He assumes that the reader is well versed with the intricacies of CAPM. I had to go back to other sources to review CAPM, but once I did, the book was a great explanation of how CAPM and other academic innovations have had a practical effect on portfolio management. When I finished the book, I had to admit... more info

• Ludicrous
  Maybe this is a great intro to classic theory, but then there is something wrong with classical thinking.
  My one-star rating is for his "forgiveness" of the Long Term Capital Management gang, since no one could have predicted what actually happened.
  LTCM managers (inducing Merton and Sholes, subjects of chapters) had excessive confidence in models based on theories that have not been even come close to being validated.
  It is ironic that Amazon pairs this book with "The Black Swan" in their... more info

• Accessible explanation of the foundations of finance
  In the early 1950s, graduate student Harry Markowitz presented his Ph.D. dissertation to the University of Chicago economics department. The response was less than encouraging. "This isn't a dissertation in economics," Milton Friedman told Markowitz. "It's not math, it's not economics, it's not even business administration." Whatever it was, Markowitz's heterodox theory of portfolio selection changed finance forever and earned a Nobel Prize. Financial historian and investment manager Peter L. Bernstein... more info

• Unique and sunsurpassed.
  I have recommended this and his previous book for finance graduate students at the University of Maryland.

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