Capital Ideas.

Peter Bernstein


In Circulation

When the 1974 recession hit Wall Street, investment professionals desperately turned to academia to help regain the value of their clients' holdings. Bernstein shows how Wall Street finally embraced the advences wrought in academic seminars and technical journals tht ultimately transformed the art of investing.

What will you learn from this book

  1. Financial Theory Evolution: Bernstein likely traces the history of financial theory, discussing the key ideas and concepts that have revolutionized the field of finance.

  2. Portfolio Theory: Exploring the development of portfolio theory, including Harry Markowitz's work on diversification and the efficient frontier.

  3. Capital Asset Pricing Model (CAPM): Discussing the CAPM and William Sharpe's contribution to understanding the relationship between risk and return.

  4. Efficient Market Hypothesis (EMH): Exploring Eugene Fama's work on the EMH, which suggests that asset prices reflect all available information.

  5. Options Pricing Model: Addressing the groundbreaking contributions of Fischer Black, Myron Scholes, and Robert Merton in options pricing with the development of the Black-Scholes model.

  6. Modern Financial Economics: Discussing the shift toward quantitative approaches to finance and the application of mathematical models in understanding financial markets.

  7. Risk Management: Highlighting the evolution of risk management theories and practices, including the development of Value at Risk (VaR) and other risk measurement tools.

  8. Critiques and Challenges: Addressing critiques and challenges to these foundational theories, exploring their limitations and areas where they might not fully explain market behavior.

  9. Impact on Investment Strategies: Discussing how these theories have influenced investment strategies, portfolio management, and decision-making in the finance industry.

  10. Future Implications: Considering the future of financial theory and potential directions for research and development in understanding markets and investing.

Language English
ISBN-10 0-02-903012-9
ISBN-13 9780029030127
No of pages 340
Font Size Medium
Book Publisher Free Press
Published Date 29 Mar 1993

About Author

Author : Peter Bernstein

1 Books

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