Red-Blooded Risk by Brown, Aaron -- Read -- Imperial Library of Trantor

Index

Cover Contents Title Copyright 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