Comparative Study on Market Risk Management Strategies

Author: Li Dequan
Publisher:
Publish Date: 2007-01-01
Features: This book first defines market risk in an objective and measurable way, and meticulously analyzes the transmission mechanism of market risk. Based on introducing the framework of expected return, it further compares and analyzes the basic logical relationships of some common risk management methods. On a micro level, risk management strategies can be categorized into speculative risk management strategies, asset portfolio risk management strategies, hedging risk management strategies, and arbitrage risk management strategies, among others. Regarding speculative risk management strategies, it is important to reasonably determine risks, as well as for arbitrage risk management strategies. This book specifically analyzes the effectiveness of market risk management and provides basic methods and approaches for evaluating the market risk management effectiveness of specific decision-makers. Most of the basic content of this book involves existing academic achievements, and the author of this book only gained some insights in the process of learning and absorbing these achievements, through mutual discussion and exchange.