Summary: Elements of Financial Risk Management pinpoints key features of risk asset returns and captures them in tractable statistical models. Written for those who measure and manage risks, Christofferson explores various types of market risk as well as the construction of conditional densities for simple assets, simulation based methods in risk management, option pricing and hedging, and risk model evaluation and comparison.
Pedagogically effective, it presents st ...show moreep-by-step approaches as a means to solve problems. Visible patterns in the data motivate the choices of tools, and when tools fall short, it presents the next tool. This unique approach bridges the gap between theory and practice. ...show less