The Missing Risk Premium: Why Low Volatility Investing Works

The Missing Risk Premium: Why Low Volatility Investing Works
- Used Book in Good Condition
Risk is the deviation from the consensus rather than an exposure to a covariance, and this implies there is no risk premium in general. It also implies that when there are a large number of people buying highly volatile assets, such assets will have negative returns in equilibrium. As there are several independent motivations for people to buy highly volatile assets, intuitively risky assets generally have lower-than-average returns. This novel conception of risk implies many things more consistent with the data than the current theory. Risk taking is an important life skill, so understanding its nature is important, and unfortunately academics who study it full-time are like so many other experts: when not irrelevant, 180 degrees wrong. This book explains the current asset pricing theory, and proposes an alternative, using theory and a unique survey of the data across many asset classes. Familiarity with some MBA level finance is helpful but not necessary to appreciate this book.
Country USA
Brand CREATESPACE
Manufacturer CreateSpace Independent Publishing Platform
Binding Paperback
ItemPartNumber RKC2007602685
UnitCount 1
EANs 9781470110970
ReleaseDate 0000-00-00

Country	USA
Brand	CREATESPACE
Manufacturer	CreateSpace Independent Publishing Platform
Binding	Paperback
ItemPartNumber	RKC2007602685
UnitCount	1
EANs	9781470110970
ReleaseDate	0000-00-00

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