Chapter 1. The Big Picture
This chapter introduces the concepts of downside risk
, upside potential
, and DTR
, which are necessary to understand the chapters in the Applications section. In the interest of time, however, one could skip ahead to Chapter 5
without reviewing the in-depth background knowledge provided here. Most formulas and equations will be reserved for the Appendix
The investment business is evolving slowly from a trade to a profession in much the same manner as the practice of medicine. The year 1876 was a turning point in medicine. Dr. Joseph Lister came to the first Centennial in America to debate the eminent Dr. Samuel Gross regarding whether surgeons should sterilize their equipment ...