Efficiently Inefficient: How Smart Money Invests and Market Prices Are Determined

Amazon.com Price: $32.79 (as of 11/10/2019 14:51 PST- Details)

Description

Efficiently Inefficient describes the key trading strategies used by hedge funds and demystifies the name of the game world of active making an investment. Leading financial economist Lasse Heje Pedersen combines the recent research with real-world examples and interviews with top hedge fund managers to show how certain trading strategies make money―and why they from time to time don’t.

Pedersen views markets as neither perfectly efficient nor completely inefficient. Reasonably, they’re inefficient enough that money managers may also be compensated for their costs through the profits of their trading strategies and efficient enough that the profits after costs do not encourage additional active making an investment. Understanding how to trade in this efficiently inefficient market provides a new, engaging way to be told finance. Pedersen analyzes how the market price of stocks and bonds can differ from the model price, leading to new perspectives on the relationship between trading results and finance theory. He explores several different areas in depth―fundamental tools for investment management, equity strategies, macro strategies, and arbitrage strategies―and he looks at such diverse topics as portfolio choice, risk management, equity valuation, and yield curve logic. The book’s strategies are illuminated further by interviews with leading hedge fund managers: Lee Ainslie, Cliff Asness, Jim Chanos, Ken Griffin, David Harding, John Paulson, Myron Scholes, and George Soros.

Efficiently Inefficient effectively demonstrates how financial markets in reality work.

Free problem sets are to be had online at http://www.lhpedersen.com

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