The professional risk managers' guide to finance theory and application - Professional Risk Managers International Association

A comprehensive analysis of finance theory from a global group of scholars and financial experts

The Professional Risk Managers' Guide to Finance Theory and Application is a complete reference for risk managers in all areas of finance, from insurance and banking to asset management and institutional investing. Ten experts from around the world discuss every aspect of finance theory and how it is intertwined with the process of risk management.

Beginning with an overview of risk and risk aversion, the reference then delivers a comprehensive introduction to portfolio mathematics that includes discussion of the efficient frontier, portfolio theory, and the concept of portfolio diversification. The most powerful part of the book concerns material on capital structure-an important concept for risk managers since capital is the last line of defense against extreme-and valuation techniques specifically for derivatives.