Another textbook I picked up from the University Library trash table is Bodie, Kane & Marcus's "Investment". It is a good textbook, uses relevant examples and explains clearly how synthetic stocks are built, how to build hedges and arbitrages, what is active portfolio management and so on. The book is very heavy in statistics and equations, which I like, but they misapply them wholesale.
For example, Chapter 27.6 explains how calculate to the second decimal point the forecasting accuracy of analists, their coefficient of bias and its variance, and how to discount each analyst's forecast. Unfortunately, accuracy yesterday does not predict accuracy tomorrow and the day after tomorrow. I am also skeptical in general about the relevance of past events to the future in investments (I must be wrong on this point, but let me be). Also portfolio manager's alpha seldom continues for more than one cycle.
The book asks the student to provide retirement advise. For example, a 50 y.o. engineer with one adult daughter and with 900,000$ savings. The student must explore the investment objectives of the engineer: Do you plan to retire at age 55 or 60? Ha! Here I am an Israeli Water Engineer at the age of Mathuselah and the idea of retirement looks so remote like Alpha Centaurii (pic). Hm!