Investment Theory and Risk Management

Praise for Investment Theory & Risk Management +Website Steven Peterson covers a lot of ground in this book, from Markowitz's Mean-Variance to Ito's Lemma. Peterson's treatment provides an excellent background in the essentials of modern investment theory as applicable to actual portfolio management. Besides its obvious usefulness as a textbook, this book would also serve as an excellent reference for those working in the professional money management arena today, especially in the endowment and pension fund worlds.-Edwin Burton, Professor of Economics, University of Virginia Peterson convincingly combines his brilliance as a teacher and mentor with his extensive practical knowledge to create this marvelous book for the serious investment professional. Read it and you will truly understand investment management and why it is first and foremost about risk management.-Rodney N. Sullivan, CFA, Editor, Financial Analysts Journal Steven Peterson's Investment Theory and Risk Management is a must-read for all students in the financial markets. Peterson's mastery of classical and contemporary investment theory is presented with thoughtful elegance and clear insight. From minimum variance portfolios to systemic risk hedging, Peterson provides an adroit exposition of the latest investment principles and fallacies of classical finance. The dangers of investing are infinite, and among them is safety. Read this book, learn its lessons, and prosper.-John Liu, PhD, Chief Investment Officer and Managing Partner, Spartus Capital Management LP I encourage all quantitative investment professionals and students of investments to read Dr. Peterson's book. It is a valuable text for both investment practitioners and academics doing work in the areas of risk management, asset allocation, and portfolio management.-Lawrence E. Kochard, CEO/CIO, University of Virginia Investment Management Company Investment Theory & Risk Management + Website puts an emphasis on practical application. To that end, most chapters have a set of spreadsheets, containing data and applications, on a companion website. All the data used in the text appears in these chapter spreadsheets, as do all of the tables and figures-allowing you to continue to learn in a hands-on fashion long after closing the book.