Preparing for the Worst Incorporating Downside Risk in Stock Market Investments

A timely approach to downside risk and its role in stock marketinvestments When dealing with the topic of risk analysis, most books oninvestments treat downside and upside risk equally. Preparing forthe Worst takes an entirely novel approach by focusing on downsiderisk and explaining how to incorporate it into investmentdecisions. Highlighting this asymmetry of the stock market, theauthors describe how existing theories miss the downside and followwith explanations of how it can be included. Various techniques forcalculating downside risk are demonstrated. This book presents the latest ideas in the field from the groundup, making the discussion accessible to mathematicians andstatisticians interested in applications in finance, as well as tofinance professionals who may not have a mathematical background.An invaluable resource for anyone wishing to explore the criticalissues of finance, portfolio management, and securities pricing,this book: Incorporates Value at Risk into the theoretical discussion Uses many examples to illustrate downside risk in U.S.,international, and emerging market investments Addresses downside risk arising from fraud and corruption Includes step-by-step instructions on how to implement themethods introduced in this book Offers advice on how to avoid pitfalls in calculations andcomputer programming Provides software use information and tips