Investment Theory and Risk Management

As markets become more competitive, volatile, and inherently more risky, embracing the opportunity to develop the skills that will allow you to become more effective in this investment environment is essential.

Nobody understands this better than author Steven Peterson. And now, with Investment Theory & Risk Management + Website, he combines his twenty-plus years of academic experience teaching at Virginia Commonwealth University’s School of Business with his professional roles as Director of Research and Senior Risk Officer for the Virginia Retirement System to put this discipline in perspective.

Written in a straightforward, conversational tone, Investment Theory & Risk Management + Website emphasizes the underlying theoretical principles of this approach in a setting rich with direct applications using market data. Step by step, it skillfully introduces issues in financial economics and follows this up with information that will help you understand the intuition behind the theory.

Designed for every level of expertise, from professional portfolio manager to those just getting started, this reliable resource covers a broad range of topics that are essential to your success. Peterson takes the time to examine equity pricing models and how pricing is approached by practitioners–with some discussion of the caveats associated with these models. He also addresses optimization and statistical concepts more rigorously than most other investment books and provides comprehensive insights on portfolio optimization, construction, and risk management.

Along the way, you’ll be introduced to topics of increasing interest to those in the area of investing and risk management, including anomalies, active portfolio management, Monte Carlo techniques, factor models, systemic risk, hedging, and structured finance. And you’ll also gain valuable information on futures, forwards, swaps, and options as well as private equity.

Throughout the book, Peterson puts an emphasis on practical application. To that end, most chapters have a set of spreadsheets, containing data and applications, on a companion website. All the data used in the text appears in these chapter spreadsheets, as do all of the tables and figures–allowing you to continue to learn in a hands-on fashion long after closing the book.

Applying investment theory and risk management to real-world situations is much easier said than done. With this book as your guide, you’ll discover what it takes to achieve these difficult goals and learn how doing so can improve your long-term investment endeavors.

As markets become more competitive, volatile, and inherently more risky, embracing the opportunity to develop the skills that will allow you to become more effective in this investment environment is essential.

Nobody understands this better than author Steven Peterson. And now, with Investment Theory & Risk Management + Website, he combines his twenty-plus years of academic experience teaching at Virginia Commonwealth University’s School of Business with his professional roles as Director of Research and Senior Risk Officer for the Virginia Retirement System to put this discipline in perspective.

Written in a straightforward, conversational tone, Investment Theory & Risk Management + Website emphasizes the underlying theoretical principles of this approach in a setting rich with direct applications using market data. Step by step, it skillfully introduces issues in financial economics and follows this up with information that will help you understand the intuition behind the theory.

Designed for every level of expertise, from professional portfolio manager to those just getting started, this reliable resource covers a broad range of topics that are essential to your success. Peterson takes the time to examine equity pricing models and how pricing is approached by practitioners―with some discussion of the caveats associated with these models. He also addresses optimization and statistical concepts more rigorously than most other investment books and provides comprehensive insights on portfolio optimization, construction, and risk management.

Along the way, you’ll be introduced to topics of increasing interest to those in the area of investing and risk management, including anomalies, active portfolio management, Monte Carlo techniques, factor models, systemic risk, hedging, and structured finance. And you’ll also gain valuable information on futures, forwards, swaps, and options as well as private equity.

Throughout the book, Peterson puts an emphasis on practical application. To that end, most chapters have a set of spreadsheets, containing data and applications, on a companion website. All the data used in the text appears in these chapter spreadsheets, as do all of the tables and figures―allowing you to continue to learn in a hands-on fashion long after closing the book.

Applying investment theory and risk management to real-world situations is much easier said than done. With this book as your guide, you’ll discover what it takes to achieve these difficult goals and learn how doing so can improve your long-term investment endeavors.