Title: Nothing New; For Beginners Only
Product review: This book is a loose collection of highly watered-down ideas from standard portfolio theory and the capital asset pricing model (CAPM). In order to appear more original the authors have renamed conventional concepts like reward and risk to "Upside" and "Regret". Their technique which they call "marking-to-future" is the same process that forms an integral part of the binomial and trinomial lattice methods which have been used in the financial community for many years. The authors have also introduced a term which they call "lambda" to represent an investor's degree of aversion to risk, which is represented by the curvature of the investor's utility function in conventional economic theory. The book contains a number of numerical errors, particularly in the examples. For those comfortable with calculus a much more comprehensive yet still readable book is "The Risk Management Process" by C. L. Culp.
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