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by Benjamin Thomas Solomon
Download A Rational Approach to Unsystematic Risk: Re-Thinking Modern Finance fb2
Finance
  • Author:
    Benjamin Thomas Solomon
  • ISBN:
    0972011617
  • ISBN13:
    978-0972011617
  • Genre:
  • Publisher:
    Benjamin Thomas Solomon (April 2002)
  • Pages:
    290 pages
  • Subcategory:
    Finance
  • Language:
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    1703 kb
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    4.3
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Unsystematic risk is composed of financial, operational, economic and strategic risks.

Unsystematic risk is composed of financial, operational, economic and strategic risks. The examples, from the Kuala Lumpur Stock Exchange, show that Nestle is better managed than Matsushita but a local company, Genting Bh. is better managed than either of them.

Benjamin Thomas Solomon. The market fall during the week of April 10th to 14th, 2000, is a timely reminder that modern finance is unable to monitor the "health" of a market. A Rational Approach to Unsystematic Risk, Re-Thinking Modern Finance" enables market managers to determine the health of their markets. Unsystematic risk is composed of financial, operational, economic and strategic risks.

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A Rational Approach to Unsystematic Risk : Re-Thinking Modern Finance. More by Benjamin Thomas Solomon. by Benjamin Thomas Solomon. An Introduction to Gravity Modification: A Guide to Using Laithwaite's and Podkletnov's Experiments and the Physics of Forces for Empirical Results, Benjamin Thomas Solomon. Re-Thinking Modern Finance. There's no description for this book yet. A Rational Approach to Unsystematic Risk. 1 2 3 4 5. Want to Read. Are you sure you want to remove A Rational Approach to Unsystematic Risk from your list? A Rational Approach to Unsystematic Risk.

A Rational Approach to Unsystematic Risk Re-Thinking Modern Finance Author: Benjamin Thomas Solomon. The market fall during the week of April 10th to 14th, 2000, is a timely reminder that modern finance is unable to monitor the "health" of a market

A Rational Approach to Unsystematic Risk Re-Thinking Modern Finance Author: Benjamin Thomas Solomon. more l, economic and strategic risks.

Two modern approaches are proposed to detect and predict risk situations: fuzzy cognitive modeling and situation modeling. The convolution algorithm is presented for situation graph generalization. The construction and impulse modeling for fuzzy cognitive model of risk detection in nuclear industry is considered. The results of modeled scenarios of possible risk evolution and their analysis are shown. Proposed approaches allow to identify and analyze the facts impacting on risk situation, obtain possible scenarios of emergence, find the decision ways in modeled situations

Unsystematic risks are majorly related to errors in entrepreneurial judgment.

Unsystematic risks are majorly related to errors in entrepreneurial judgment.

The market fall during the week of April 10th to 14th, 2000, is a timely reminder that modern finance is unable to monitor the "health" of a market. "A Rational Approach to Unsystematic Risk, Re-Thinking Modern Finance" enables market managers to determine the health of their markets.

Unsystematic risk is composed of financial, operational, economic and strategic risks. Systematic risk on the other hand, is the day-to-day share price risk exhibited by a market. New financial models, based on heterogeneous investors expectations, derived from John Burr Williams's Dividend Discount Model demonstrate that portfolios consist of 80% unsystematic risk and 20% systematic risk. In essence, unsystematic risk is vital to managing markets, portfolios and companies.

A wide range of financial issues from corporate risks, portfolio management, stock exchange management, market players and market manipulation are discussed. These topics inform us on how unsystematic risk can be used to better manage your investment funds and your companies.

For example, in the first half of the 1990s, the New York Stock Exchange exhibited the Weak-Form and Strong-Form of market efficiency, 84% and 81% of the time, respectively. (The Efficient Market Hypothesis is finally quantified in this book.) The best managed, stock exchange during this same period (out of 9 in the US, Europe and Asia) was Hong Kong, exhibiting Weak-Form and Strong-Form of market efficiency, 100% and 91% of the time, respectively.

Unsystematic risk is used to optimize portfolios to provide better risk-return relationships than the market can provide. Yes, the market can be beaten on a risk-adjusted basis, and markets are only as efficient as the market players and market instruments, i.e. markets are not efficient.

The examples in this book demonstrate how one can build a risk-minimized or a return-maximized portfolio, using dynamic programming techniques.

Both example portfolios provide risk-return ratios of 2.96 (4.86% risk & 1.64% return) and 2.08 (5.23% risk & 2.52% return) respectively. This is much better than the market portfolio of 3.57 (5.79% risk & 1.62% return). If your fund manager does not believe this ask him to read this book.

If you are interested in how cash flow affects your company's share price, this book explains how unsystematic risk is created by cash flow and how you can use this information to manage your business in such a manner as to maximize your share price. The examples, from the Kuala Lumpur Stock Exchange, show that Nestle is better managed than Matsushita but a local company, Genting Bhd., is better managed than either of them. Their average risks are 0.478, 0.933 and 0.170 respectively. The risk-ranking scheme presented in this book recognizes the 'super-blue-chip' category. No company made it to this category, not even the multinationals.

The risk-ranking scheme presented in this book, ranks the total company risk, unlike the ranking schemes used by rating agencies such as Standard & Poors, and Moody, which use credit risk to rank companies.

This book is the first step to improving the U.S. competitive position by altering the commonly held perception and handling of corporate risks. If you acknowledge the significant role of unsystematic risks, the resulting paradigm shifts present a whole world of new perspectives on manag