Risk Finance and Asset Pricing: Value, Measurements, and Markets - Hardcover

by Charles S. Tapiero (Author)

A comprehensive guide to financial engineering that stresses real-world applications

Financial engineering expert Charles S. Tapiero has his finger on the pulse of shifts coming to financial engineering and its applications. With an eye toward the future, he has crafted a comprehensive and accessible book for practitioners and students of Financial Engineering that emphasizes an intuitive approach to financial and quantitative foundations in financial and risk engineering. The book covers the theory from a practitioner perspective and applies it to a variety of real-world problems.

• Examines the cornerstone of the explosive growth in markets worldwide
• Presents important financial engineering techniques to price, hedge, and manage risks in general
• Author heads the largest financial engineering program in the world
  Author Charles Tapiero wrote the seminal work Risk and Financial Management.

Front Jacket

Over the past two decades, financial firms, companies, and governments have shifted greater attention to financial manipulations in which they capitalized on leverage and short-term returns. These actually resulted in an explosive and global growth in financial activity. A financial Pandora's box had been opened, and countries and blue chip corporations believing in perpetual growth and once thought too big to fail, found themselves strangled with a debt they were not able to bear.

The recent market melt-down and credit liquidity crisis created full realization that complex financial products--when misunderstood and misused--can have devastating effects. Risk Finance and Asset Pricing: Value, Measurements, and Markets is a comprehensive introduction to financial engineering that presents the foundations of asset pricing and risk management, while stressing real-world applications.

Written for both beginning and practicing financial engineers, author Charles Tapiero--the Topfer Distinguished Professor of Financial Engineering and Technology Management at the NYU Polytechnic Institute--provides:

• A non-quantitative introduction to the business of finance, risk, and their many applications

• An overview of the statistical approaches for measuring risk

• An introduction to the concept of utility and financial risk management

• An outline of the Arrow-Debreu framework in discrete states and time for assets and derivatives (options) pricing

• An outline of credit risk, scoring, and complex structured financial products such as credit derivatives, their models, their demystification, pricing, and finally, a cursory view of technical approaches to implied pricing

Each chapter includes a summary of the techniques described, and concludes with a series of problems so readers can test what they've learned.

Financial engineering, despite its challenges and opportunities, when misunderstood, has the potential to wreak havoc on world economies and individual portfolios. Risk Finance and Asset Pricing presents a new direction in financial engineering education that combines reality and theory so that risk finance might again work as intended.

Back Jacket

Over the past two decades, financial firms, companies, and governments have shifted greater attention to financial manipulations in which they capitalized on leverage and short-term returns. These actually resulted in an explosive and global growth in financial activity. A financial Pandora's box had been opened, and countries and blue chip corporations believing in perpetual growth and once thought too big to fail, found themselves strangled with a debt they were not able to bear.

The recent market melt-down and credit liquidity crisis created full realization that complex financial products--when misunderstood and misused--can have devastating effects. Risk Finance and Asset Pricing: Value, Measurements, and Markets is a comprehensive introduction to financial engineering that presents the foundations of asset pricing and risk management, while stressing real-world applications.

Written for both beginning and practicing financial engineers, author Charles Tapiero--the Topfer Distinguished Professor of Financial Engineering and Technology Management at the NYU Polytechnic Institute--provides:

• A non-quantitative introduction to the business of finance, risk, and their many applications
• An overview of the statistical approaches for measuring risk
• An introduction to the concept of utility and financial risk management
• An outline of the Arrow-Debreu framework in discrete states and time for assets and derivatives (options) pricing
• An outline of credit risk, scoring, and complex structured financial products such as credit derivatives, their models, their demystification, pricing, and finally, a cursory view of technical approaches to implied pricing

Each chapter includes a summary of the techniques described, and concludes with a series of problems so readers can test what they've learned.

Financial engineering, despite its challenges and opportunities, when misunderstood, has the potential to wreak havoc on world economies and individual portfolios. Risk Finance and Asset Pricing presents a new direction in financial engineering education that combines reality and theory so that risk finance might again work as intended.

Author Biography

CHARLES S. TAPIERO is the Topfer Distinguished Professor of Financial Engineering and Technology Management at the New York University Polytechnic Institute. He is also Chair and founder of the Department of Finance and Risk Engineering, as well as cofounder and co-Editor in Chief of Risk and Decision Analysis. An active researcher and consultant, Professor Tapiero has published over 350 papers and thirteen books on a broad range of issues spanning risk analysis, actuarial and financial risk engineering, and management, including Risk and Financial Management: Mathematical and Computational Methods, also by Wiley.