risk
Is there a trade-off between diversity and investment performance?
How healthy are the bank and non-bank sectors across the globe? How does their current status compare with the days preceding the global financial crisis?
An unorthodox solution to the US retirement crisis from Sloane Ortel; a discussion of Nobel laureate Richard H. Thaler's contributions to economics by Lauren Foster; and an analysis of the value of self-awareness by Jim Ware, CFA, are among the top EI posts from October.
The right question isn't whether volatility equals risk, says Gary Mishuris, CFA. Rather, the right question to ask is: When does volatility equal risk?
One modern portfolio theory (MPT) pillar that is unquestionably broken is the use of volatility, specifically standard deviation, as a measure of risk, Jason Voss, CFA, and C. Thomas Howard write in the latest edition of The Active Equity Renaissance series. This initial error in MPT's development is a major contributor to active investment management underperformance.
Risk: Your Global Guide is a slim but valuable guide to risk management and fraud detection. The book’s message is simple: Understand the basic principles of finance, reduce unintended risk, and obtain a level of reward commensurate with the level of risk that you assume. This high-level perspective allows the reader to see the big picture and understand how fraud at the highest levels of finance and government affects ordinary citizens.
Jonathan Moog, CFA, and the Lizard Investors team concentrate on the international small- to mid-cap space because they believe there are inefficiencies in that market.
Even the most cursory study reveals that systemic risk means different things to different people, so Ron Rimkus, CFA, worked to create a definition that potentially everyone could agree on.
Edward Altman says the benign credit cycle is in “extra innings,” but the metaphorical relief pitchers — central bankers — are running out of gas.
In this reissued book, the authors explore credit risk from four distinct quantitative perspectives — the occurrence, frequency, timing, and severity of a loss — and focus on the core econometric techniques for measuring each aspect. Given the industry failings associated with the recent global financial crisis, it is more important than ever for financial analysts to understand the mechanics of quantitative risk tools.