Risk management and financial institutions / [electronic resource]
John C. Hull.
- 5th ed.
- Hoboken, New Jersey : John Wiley & Sons, Inc., 2018.
- 1 online resource (xxvii, 799 pages).
Intro; Risk Management and Financial Institutions; Contents in Brief; Contents; Business Snapshots; Preface; New Material; Slides; Questions and Problems; Instructor Material; Acknowledgments; 1 Introduction; 1.1 Risk vs. Return for Investors; 1.1.1 Quantifying Risk; 1.1.2 Investment Opportunities; 1.2 The Efficient Frontier; 1.3 The Capital Asset Pricing Model; 1.3.1 Assumptions; 1.3.2 Alpha; 1.4 Arbitrage Pricing Theory; 1.5 Risk vs. Return for Companies; 1.5.1 Bankruptcy Costs; 1.5.2 Financial Institutions; 1.5.3 Regulation; 1.6 Risk Management by Financial Institutions; 1.7 Credit Ratings. Practice Questions and Problems (Answers at End of Book)Further Questions; 3 Insurance Companies and Pension Plans; 3.1 Life Insurance; 3.1.1 Term Life Insurance; 3.1.2 Whole Life Insurance; 3.1.3 Variable Life Insurance; 3.1.4 Universal Life; 3.1.5 Variable-Universal Life Insurance; 3.1.6 Endowment Life Insurance; 3.1.7 Group Life Insurance; 3.2 Annuity Contracts; 3.3 Mortality Tables; 3.4 Longevity and Mortality Risk; 3.4.1 Longevity Derivatives; 3.5 Property-Casualty Insurance; 3.5.1 CAT Bonds; 3.5.2 Ratios Calculated by Property-Casualty Insurers; 3.6 Health Insurance. 3.7 Moral Hazard and Adverse Selection3.7.1 Moral Hazard; 3.7.2 Adverse Selection; 3.8 Reinsurance; 3.9 Capital Requirements; 3.9.1 Life Insurance Companies; 3.9.2 Property-Casualty Insurance Companies; 3.10 The Risks Facing Insurance Companies; 3.11 Regulation; 3.11.1 United States; 3.11.2 Europe; 3.12 Pension Plans; 3.12.1 Are Defined Benefit Plans Viable?; Summary; Further Reading; Practice Questions and Problems (Answers at End of Book); Further Questions; 4 Mutual Funds, ETFs, and Hedge Funds; 4.1 Mutual Funds; 4.1.1 Index Funds; 4.1.2 Costs; 4.1.3 Closed-End Funds. 4.2 Exchange-Traded Funds4.3 Active vs. Passive Management; 4.4 Regulation; 4.5 Hedge Funds; 4.5.1 Fees; 4.5.2 Incentives of Hedge Fund Managers; 4.5.3 Prime Brokers; 4.6 Hedge Fund Strategies; 4.6.1 Long/Short Equity; 4.6.2 Dedicated Short; 4.6.3 Distressed Securities; 4.6.4 Merger Arbitrage; 4.6.5 Convertible Arbitrage; 4.6.6 Fixed Income Arbitrage; 4.6.7 Emerging Markets; 4.6.8 Global Macro; 4.6.9 Managed Futures; 4.7 Hedge Fund Performance; Summary; Further Reading; Practice Questions and Problems (Answers at End of Book); Further Questions; 5 Trading in Financial Markets; 5.1 The Markets.
The most complete, up-to-date guide to risk management in finance Risk Management and Financial Institutions, Fifth Edition explains all aspects of financial risk and financial institution regulation, helping you better understand the financial markets-and their potential dangers. Inside, you'll learn the different types of risk, how and where they appear in different types of institutions, and how the regulatory structure of each institution affects risk management practices. Comprehensive ancillary materials include software, practice questions, and all necessary teaching supplements, facilitating more complete understanding and providing an ultimate learning resource. All financial professionals need to understand and quantify the risks associated with their decisions. This book provides a complete guide to risk management with the most up to date information. • Understand how risk affects different types of financial institutions • Learn the different types of risk and how they are managed • Study the most current regulatory issues that deal with risk • Get the help you need, whether you're a student or a professional Risk management has become increasingly important in recent years and a deep understanding is essential for anyone working in the finance industry; today, risk management is part of everyone's job. For complete information and comprehensive coverage of the latest industry issues and practices, Risk Management and Financial Institutions, Fifth Edition is an informative, authoritative guide.