Modern-portfolio-theory

The publisher has added a lot of graphs and diagrams to aid understanding. It is a very user-friendly book and suitable for undergraduates and beginner postgraduates courses. The only room for improvement is that the depth of material is not enough for more advanced course.

Nicely written from a journalistic perspective but rather old fashioned. Many mistakes and deliberate false claims in order to suit product interests of Goldman Sachs. Examples:

In the chapter on asset liability management there is always an analytical case for equities. However the only reason is that GS does not allow duration as a choice variable. Otherwise beta (in their formula) would become one and the optimal equity allocation is zero. Accidental? I doubt it.

They also claim to have found (earlier) a better method than Stambaugh on dealing with missing data. However either you publish or you shut up.

Waste of time for serious quants

My highest commendations to the asset management team at Goldman Sachs. They have come together and created a highly comprehensive tome that covers all the bases within the realm of modern investment theory. Their solid equilibrium approach is applied to all areas, from traditional investments to alternative asset classes, from institutional funds to private wealth, using analysis and real world applications. Incredibly thorough, extremely recommended.

This book provide a visual approach to me to understand more what is the text talking about. It is very clear to me to learn and see the result of a portfolio. Very useful.