Red-Blooded Risk

Aaron Brown 지음

Wiley 2011년 09월 09일 출간

작품소개

책소개

An innovative guide that identifies what distinguishes the best financial risk takers from the restFrom 1987 to 1992, a small group of Wall Street quants invented an entirely new way of managing risk to maximize success: risk management for risk-takers. This is the secret that lets tiny quantitative edges create hedge fund billionaires, and defines the powerful modern global derivatives economy. The same practical techniques are still used today by risk-takers in finance as well as many other fields. Red-Blooded Risk examines this approach and offers valuable advice for the calculated risk-takers who need precise quantitative guidance that will help separate them from the rest of the pack. While most commentators say that the last financial crisis proved it's time to follow risk-minimizing techniques, they're wrong. The only way to succeed at anything is to manage true risk, which includes the chance of loss. Red-Blooded Risk presents specific, actionable strategies that will allow you to be a practical risk-taker in even the most dynamic markets.Contains a secret history of Wall Street, the parts all the other books leave outIncludes an intellectually rigorous narrative addressing what it takes to really make it in any risky activity, on or off Wall StreetAddresses essential issues ranging from the way you think about chance to economics, politics, finance, and lifeWritten by Aaron Brown, one of the most calculated and successful risk takers in the world of finance, who was an active participant in the creation of modern risk management and had a front-row seat to the last meltdownWritten in an engaging but rigorous style, with no equationsContains illustrations and graphic narrative by renowned manga artist Eric KimThere are people who disapprove of every risk before the fact, but never stop anyone from doing anything dangerous because they want to take credit for any succ

목차

Acknowledgments xiChapter 1 What This Book Is and Why You Should Read It 1Risk, Danger, and Opportunity 2Red- Blooded Risk Management 4Risk and Life 7Play and Money 9Frequentism 11Rationality 13Bets 15Exponentials and Culture 18Payoff 20Chapter 2 Red Blood and Blue Blood 23Chapter 3 Pascal's Wager and the Seven Principles of Risk Management 29Principle I: Risk Duality 32Principle II: Valuable Boundary 33Principle III: Risk Ignition 35Principle IV: Money 38Outside the VaR Boundary 40Principle V: Evolution 45Principle VI: Superposition 48Principle VII: Game Theory 49Chapter 4 The Secret History of Wall Street: 1654&~ 1982 57Pascal and Fermat 58Poker 61Advantage Gamblers 62Sports Betting 63Quants to Wall Street 66Finance People 68Real Finance 69Chapter 5 When Harry Met Kelly 73Kelly 74Harry 76Commodity Futures 79If Harry Knew Kelly 84Investment Growth Theory 88eRaider.com 92MPT Out in the World 96Chapter 6 Exponentials, Vampires, Zombies, and Tulips 101Types of Growth 102The Negative Side 105Tulips 106Tulip Propaganda 108Quantitative Tulip Modeling 111Money 112Chapter 7 Money 117Chapter 8 The Story of Money: The Past 125Property, Exchange, and Money 126Paleonomics 128Transition 131What Money Does 134Risk 135Government and Paper 138Paper versus Metal 1421776 and All That 145Andrew Dexter 147A Short Digression into Politics and Religion 150Chapter 9 The Secret History of Wall Street: 1983&~ 1987 155Effi cient Markets 157Anomalies 159The Price Is Right . . . Not! 161Effi ciency versus Equilibrium 162Beating the Market 165Paths 170Sharpe Ratios and Wealth 1741987 177Chapter 10 The Story of Money: The Future 179Farmers and Millers 180Money, New and Improved 183A General Theory of Money 185Val

출판사 서평

"Wickedly original, one of the most fascinating accounts I have ever seen. A rollicking and highly opinionated read." (Risk Professional, October 2011)“No one who reads Red-Blooded Risk: The Secret History of Wall Street will ever again regard risk management as a necessary but unproductive appendage of the financial industry. Other authors have chronicled how quantitative finance influenced investment management, but Aaron Brown has made a compelling case for a far more profound economic impact. . . If Red-Blooded Risk: The Secret History of Wall Street dealt with nothing more than the inadequacy of models used in highly important activities, it would represent a valuable contribution to financial economics. Brown&'s book, however, covers a great deal more than econometric malpractice. Probably no other book offers as much insight into the process with so little resort to mathematical notation. Especially valuable are Brown&'s discussions of middle-office risk management and value at risk, comparatively recent innovations that are essential to understanding modern financial institutions. Readers of Red-Blooded Risk should be prepared to have many of their assumptions challenged. Red-Blooded Risk is one of the most original and thought-provoking books reviewed in these pages in the past 20 years. No one who reads it will ever again regard risk management as a necessary but unproductive appendage of the financial industry. Other authors have chronicled how quantitative finance influenced investment management, but Aaron Brown has made a compelling case for a far more profound economic impact.”&m-Martin S. Fridson, CFA Institute Publications Book Reviews“Red-Blooded Risk mixes risk history and philosophy nimbly and provides a perspective that can be both refreshing and challenging (often on the same page). While the book is not without weakne

작가정보

저자(글) Aaron Brown

저자 :

저자 :

저자 :

저자 :

저자 :
저자 :
저자 :
Aaron Brown is risk manager at AQR Capital Management and the author of The Poker Face of Wall Street (Wiley), selected one of the ten best books of 2006 by BusinessWeek, and A World of Chance with Reuven and Gabrielle Brenner. In his thirty-year Wall Street career, he has been a trader, portfolio manager, head of mortgage securities, and risk manager for institutions including Citigroup and Morgan Stanley. He also served a stint as a finance professor and was among the top poker players in the world during the 1970s and 1980s. He holds degrees in applied mathematics from Harvard and in finance and statistics from the University of Chicago.