Red-Blooded Risk : The Secret History of Wall Street.
Title:
Red-Blooded Risk : The Secret History of Wall Street.
Author:
Brown, Aaron.
ISBN:
9781118140154
Personal Author:
Edition:
1st ed.
Physical Description:
1 online resource (431 pages)
Series:
Unofficial Guides
Contents:
Red-Blooded Risk: The Secret History of Wall Street -- Contents -- Acknowledgments -- Chapter 1: What This Book Is and Why You Should Read It -- Risk, Danger, and Opportunity -- Red-Blooded Risk Management -- Risk and Life -- Play and Money -- Frequentism -- Rationality -- Bets -- Exponentials and Culture -- Payoff -- Chapter 2: Red Blood and Blue Blood -- Chapter 3: Pascal's Wager and the Seven Principles of Risk Management -- Principle I: Risk Duality -- Principle II: Valuable Boundary -- Principle III: Risk Ignition -- Principle IV: Money -- Outside the VaR Boundary -- Principle V: Evolution -- Principle VI: Superposition -- Principle VII: Game Theory -- Chapter 4: The Secret History of Wall Street: 1654-1982 -- Pascal and Fermat -- Poker -- Advantage Gamblers -- Sports Betting -- Quants to Wall Street -- Finance People -- Real Finance -- Chapter 5: When Harry Met Kelly -- Kelly -- Harry -- Commodity Futures -- If Harry Knew Kelly -- Investment Growth Theory -- eRaider.com -- MPT Out in the World -- Chapter 6: Exponentials, Vampires, Zombies, and Tulips -- Types of Growth -- The Negative Side -- Tulips -- Tulip Propaganda -- Quantitative Tulip Modeling -- Money -- Chapter 7: Money -- Chapter 8: The Story of Money: The Past -- Property, Exchange, and Money -- Paleonomics -- Transition -- What Money Does -- Risk -- Government and Paper -- Paper versus Metal -- 1776 and All That -- Andrew Dexter -- A Short Digression into Politics and Religion -- Chapter 9: The Secret History of Wall Street: 1983-1987 -- Efficient Markets -- Anomalies -- The Price Is Right...Not! -- Efficiency versus Equilibrium -- Beating the Market -- Paths -- Sharpe Ratios and Wealth -- 1987 -- Chapter 10: The Story of Money: The Future -- Farmers and Millers -- Money, New and Improved -- A General Theory of Money -- Value and Money -- Numeraire -- Clearinghouses -- Cash.
Derivative Money -- The End of Paper -- Chapter 11: Cold Blood -- Chapter 12: What Does a Risk Manager Do?-Inside VaR -- Professional Standards -- Front Office -- Trading Risk -- Quants on the Job -- Middle Office -- Back Office -- Middle Office Again -- Looking Backward -- Risk Control -- Beyond Profit and Loss -- Numbers -- The Banks of the Charles -- Waste -- The Banks of the Potomac -- The Summer of My Discontent -- Validation -- Chapter 13: VaR of the Jungle -- Chapter 14: The Secret History of Wall Street: 1988-1992 -- Smile -- Back to the Dissertation -- Three Paths -- An Unexpected Twist -- Surprise! -- Computing VaR -- Chapter 15: Hot Blood and Thin Blood -- Chapter 16: What Does a Risk Manager Do?-Outside VaR -- Stress Tests -- Trans-VaR Scenarios -- Black Holes -- Why Risk Managers Failed to Prevent the Financial Crisis -- Managing Risk -- Unspeakable Truth Number One: Risk Managers Should Make Sure Firms Fail -- Unspeakable Truth Number Two: There's Good Stuff beyond the VaR Limit -- Unspeakable Truth Number Three: Risk Managers Create Risk -- Chapter 17: The Story of Risk -- Chapter 18: Frequency versus Degree of Belief -- Statistical Games -- Thorp, Black, Scholes, and Merton -- Change of Numeraire -- Polling -- The Quant Revolution -- Chapter 19: The Secret History of Wall Street: 1993-2007 -- Where Did the Money Come From? -- Where Did They Put the Money? -- Where Did the Money Go? -- Chapter 20: The Secret History of Wall Street: The 2007 Crisis and Beyond -- Postmortem -- A Risk Management Curriculum -- One Hundred Useful Books -- About the Author -- About the Illustrator -- Index.
Abstract:
An innovative guide that identifies what distinguishes the best financial risk takers from the rest From 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 out Includes an intellectually rigorous narrative addressing what it takes to really make it in any risky activity, on or off Wall Street Addresses essential issues ranging from the way you think about chance to economics, politics, finance, and life Written 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 meltdown Written in an engaging but rigorous style, with no equations Contains illustrations and graphic narrative by renowned manga artist Eric Kim There 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 success. The recent financial crisis has swelled their ranks, but in learning how to break free of these people, you'll discover how taking on the right risk can open the door to the most profitable opportunities.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
Genre:
Electronic Access:
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