This timely book explores investment risk and return as fundamental concepts that underpin financial decision-making and portfolio management. With contributions from scholars and practitioners, it combines conceptual frameworks with real-world applications, providing insights into the consequences of past miscalculations of risk and returns and how advanced techniques help to improve decision-making.
Understanding Investment Risk and Return outlines how investors can measure and manage both concepts to achieve their financial goals, such as controlling inflation and maximizing risk-adjusted performance. It integrates theoretical frameworks for portfolio optimization, including the efficient frontier, the capital asset pricing model (CAPM), and more advanced factor models that explain asset returns and risk exposures. Chapters explore how these models evolve with the integration of less traditional benefits such as derivatives and digital assets alongside technological advancements including AI and machine learning.
With discussion questions at the end of each chapter to provoke further consideration and understanding of the topics, this book is a valuable tool for advanced students of financial economics and educators in the field alike.
Rezensionen / Stimmen
'One of the classic paradigms in financial decision-decision-making is the risk-return tradeoff. Over the decades, much has been written on this topic. This must-have book goes beyond the basics to discuss sophisticated methods for measuring and managing risk across diverse asset classes clearly and concisely.' -- H. Kent Baker, American University, USA 'Understanding Investment Risk and Return is a comprehensive and accessible resource that bridges academic insight with real-world relevance. The authors skillfully guide readers through foundational concepts, advanced models, and emerging trends with clarity and depth. This text will be invaluable for CFA candidates, graduate students, practitioners, and anyone seeking to deepen their understanding of the risk-return relationship in today's dynamic financial landscape.' -- Patty Chadwell, Asbury University, USA
Reihe
Sprache
Verlagsort
Zielgruppe
Maße
Höhe: 234 mm
Breite: 156 mm
ISBN-13
978-1-0353-3971-6 (9781035339716)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Klassifikation
Edited by Greg Filbeck, Samuel P. Black III Professor of Finance and Risk Management, Black School of Business, Vice Chancellor and Associate Dean for Academic Affairs, Penn State Behrend and Hunter Holzhauer, Robert L. Maclellan & UC Foundation Associate Professor of Finance, Gary W. Rollins College of Business, University of Tennessee at Chattanooga, USA
Contents
PART I Foundations of risk and return
1 Understanding risk and return: an overview 2
Greg Filbeck and Hunter Holzhauer
2 Measuring and managing risk 13
Xudong Fu
3 Measuring and managing returns 42
Timothy A. Krause, Eric J. Robbins and Santina A. Haddad
PART II Risk-return management and analysis
4 Risk and return across inflationary regimes 67
Jarah D. Macfarlane
5 Risk-adjusted performance measurement 94
Pilar Grau-Carles
6 Prioritizing risks 124
Auke Plantinga
7 Understanding, applying, and critiquing different factor models 604
Rustin T. Yerkes
PART III Risk and asset classes
8 Digital assets (cryptocurrencies): part of a multi-asset portfolio 624
Pankaj Agrrawal and Doug Waggle
9 Speculating return and hedging risk with derivatives 653
Tian (Lori) Tang
10 Irrational investors 678
Xing Lu
PART IV Going forward
11 Bulls, bears, bubbles, and bankruptcy: what have we learned? 698
Melissa Woodley
12 Future trends and models for managing risk and return 721
M. Tony Via
