Los (U. of Adelaide, Australia) evaluates the epistemic risks associated with valuations of different financial instruments and relates them to risk management strategies. Arguing that in most areas of computational finance, expositions start with philosophical assumptions and force the data into assumed abstract frameworks, leading to data inconsistencies and model instabilities, he contends that modeling methods must begin with the financial data and proceed with 3D visualizations of the data with sophisticated symbolic algebra and visualization software systems. Gathering empirical examples from the commercial practices of money management, financial intermediation, investment banking, corporate financing, capital budgeting, and insurance fund management; Los discusses efficient market theory, portfolio selection, risk analysis, and contingent- claim valuation theory. He further explores their relationships to each other and to empirical reality. Annotation copyrighted by Book News, Inc., Portland, ORThis book outlines the epistemic risks associated with the current valuations of different financial instruments and discusses corresponding risk management strategies. It covers most research and practical areas in computational finance.
|Author||:||Cornelis A. Los|
|Publisher||:||World Scientific - 2001|