Unofficial Guides : Red-Blooded Risk : The Secret History of Wall Street (9th Edition)

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. 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 Annotation 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 Risktakers. 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 Risktakers In Finance As Well As Many Other Fields. Redblooded Risk Examines This Approach And Offers Valuable Advice For The Calculated Risktakers 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 Its Time To Follow Riskminimizing Techniques, Theyre Wrong. The Only Way To Succeed At Anything Is To Manage True Risk, Which Includes The Chance Of Loss.^ Redblooded Risk Presents Specific, Actionable Strategies That Will Allow You To Be A Practical Risktaker 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 Frontrow 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 Success.^ The Recent Financial Crisis Has Swelled Their Ranks, But In Learning How To Break Free Of These People, Youll Discover How Taking On The Right Risk Can Open The Door To The Most Profitable Opportunities. What This Book Is And Why You Should Read It -- Red Blood And Blue Blood -- Pascal's Wager And The Seven Principles Of Risk Management -- The Secret History Of Wall Street, 1654-1982 -- When Harry Met Kelly -- Exponentials, Vampires, Zombies, And Tulips -- Money -- The Story Of Money : The Past -- The Secret History Of Wall Street, 1983-1987 -- The Story Of Money : The Future -- Cold Blood -- What Does A Risk Manager Do? Inside Var -- Var Of The Jungle -- The Secret History Of Wall Street, 1988-1992 -- Hot Blood And Thin Blood -- What Does A Risk Manager Do? Outside Var -- The Story Of Risk -- Frequency Versus Degree Of Belief -- The Secret History Of Wall Street, 1993-2007 -- The Secret History Of Wall Street : The 2007 Crisis And Beyond -- Postmortem -- A Risk Management Curiculum. Aaron Brown ; [illustrated By Eric Kim]. Includes Bibliographic References And Index. One Hundred Useful Books: P. 393-399. Annotation 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 risktakers. 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 risktakers in finance as well as many other fields. RedBlooded Risk examines this approach and offers valuable advice for the calculated risktakers 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 its time to follow riskminimizing techniques, theyre wrong. The only way to succeed at anything is to manage true risk, which includes the chance of loss. RedBlooded Risk presents specific, actionable strategies that will allow you to be a practical risktaker 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 frontrow 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 success. The recent financial crisis has swelled their ranks, but in learning how to break free of these people, youll discover how taking on the right risk can open the door to the most profitable opportunities