Description: This abstract describes a paper that models an insurer’s surplus as a Geometric Brownian motion with Poisson jumps.

Description: Investment Fallacies: Simulation of Long-Term Stock Returns: Fat-Tails and Mean Reversion

Description: Investment Fallacies: The Misconceptions of Retirement Risks

Description: There are two major categories of risks that are unique in international business- currency exchange rate risk and country risk. Currency exchange rate risk includes transaction exposure, translation exposure, and economic exposure. Country risk contains political risk and economic risk. There are a few different methods to hedge currency exchange rate risk and country risk also discussed in the article. Before you decide to invest in a certain country’s market, ensure you understand the currency exchange rate and political risks associated with the investment by performing due diligence on the country’s economic, political and cultural condition.

Description: This article provides an analysis of Value at Risk VAR and its advantages and limitations as a tool for assessing and quantifying market risk. The article originally appeared in the August 1997 issue of Financial Engineering News and is reprinted with permission.

Description: Investment Fallacies: The Fable of the Storyteller and the Market

Description: This article discusses a good way for insurance companies to calibrate economic capital (tail risk level) that is consistent with the market opinion on its risk. It also establishes a bridge between a risk neutral evaluation and a real world evaluation.

Description: E-book contains 16 topical essays that express the opinions and thoughts of a number of authors on the subject of Investment Fallacies.

Description: Investment Fallacies: Extended periods of robust macroeconomic growth are healthy for investing.

Description: Investment Fallacies: Bitcoin Fallacies