Pandora's Risk : : Uncertainty at the Core of Finance / / Kent Osband.

• Superior document: Title is part of eBook package: De Gruyter Columbia University Press eBook-Package Backlist 2000-2013
• VerfasserIn: Osband, Kent,
• Place / Publishing House: New York, NY : : Columbia University Press, , [2011]; ©2011
• Year of Publication: 2011
• Language: English
• Series: Columbia Business School Publishing
• Physical Description: 1 online resource (304 p.) :; 40 line drawings, 5 tables

Author of the acclaimed work Iceberg Risk: An Adventure in Portfolio Theory, Kent Osband argues that uncertainty is central rather than marginal to finance. Markets don't trade mainly on changes in risk. They trade on changes in beliefs about risk, and in the process, markets unite, stretch, and occasionally defy beliefs. Recognizing this truth would make a world of difference in investing. Belittling uncertainty has created a rift between financial theory and practice and within finance theory itself, misguiding regulation and stoking huge financial imbalances.Sparking a revolution in the mindset of the investment professional, Osband recasts the market as a learning machine rather than a knowledge machine. The market continually errs, corrects itself, and makes new errors. Respecting that process, without idolizing it, will promote wiser investment, trading, and regulation. With uncertainty embedded at its core, Osband's rational approach points to a finance theory worthy of twenty-first-century investing.

Table of Contents

Frontmatter -- Contents -- Preface -- Acknowledgments -- Abbreviations -- 1. Introduction -- 2. The Ultimate Confidence Game -- 3. Great Expectations -- 4. Sustainable Debt -- 5. The Midas Touch -- 6. Safety in Numbers -- 7. When God Changes Dice -- 8. Credit-ability -- 9. Insecuritization -- 10. Risks in Value-at-Risk -- 11. Resizing Risks -- 12. Conclusions -- Appendix -- References -- Index