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Red-Blooded Risk: The Secret History of Wall Street by Aaron Brown

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Contents

Acknowledgments

Chapter 1 What This Book Is and Why You Should Read It

Risk, Danger, and Opportunity

Red-Blooded Risk Management

Risk and Life

Play and Money

Frequentism

Rationality

Bets

Exponentials and Culture

Payoff

Chapter 2 Red Blood and Blue Blood

Chapter 3 Pascal's Wager and the Seven Principles of Risk Management

Principle I: Risk Duality

Principle II: Valuable Boundary

Principle III: Risk Ignition

Principle IV: Money

Outside the VaR Boundary

Principle V: Evolution

Principle VI: Superposition

Principle VII: Game Theory49

Chapter 4 The Secret History of Wall Street: 1654–1982

Pascal and Fermat

Poker

Advantage Gamblers

Sports Betting

Quants to Wall Street

Finance People

Real Finance

Chapter 5 When Harry Met Kelly

Kelly

Harry

Commodity Futures

If Harry Knew Kelly

Investment Growth Theory

eRaider.com

MPT Out in the World

Chapter 6 Exponentials, Vampires, Zombies, and Tulips

Types of Growth

The Negative Side

Tulips

Tulip Propaganda

Quantitative Tulip Modeling

Money

Chapter 7 Money

Chapter 8 The Story of Money: The Past

Property, Exchange, and Money

Paleonomics

Transition

What Money Does

Risk

Government and Paper

Paper versus Metal

1776 and All That

Andrew Dexter

A Short Digression into Politics and Religion

Chapter 9 The Secret History of Wall Street: 1983–1987

Efficient Markets

Anomalies

The Price Is Right ... Not!

Efficiency versus Equilibrium

Beating the Market

Paths

Sharpe Ratios and Wealth

1987

Chapter 10 The Story of Money: The Future

Farmers and Millers

Money, ...

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