I find the book INVESTMENTS - Bodie, Kane, Marcus, Mohanty highly commendable in its thorough coverage of basic tenets of modern finance and also its flavour of Indian Markets.
- The book is predicated on the premise of Near- Informational efficiency of Well developed Securities Markets
- This is highly important as many naive market participants are not aware or ignore this.
- The effect of transaction costs is very significant as it is very tough to overcome the VIG.
- Related article on the high levels of STT in Indian Markets here.
- Another significant tenet of the book is that Higher expected returns come only at a price. As investors are aware the higher returns are realized for bearing the tail risk ( The case of SATYAM comes to mind)
