Chapter 2 about stylized investment markets facts is complete.

This chapter presents several perspectives on risk and return trade-off, risk clustering, volatility risk premium, skewness, kurtosis, and the consequences for investment modeling and analysis.

While these characteristics should be familiar to experienced investment managers, they are presented from a perspective that is perhaps new to them.

The chapter highlights the significant mistakes we make when using mean-variance analysis, and what the volatility risk premium reveals about investor risk preferences.

See how you get access to the book and the accompanying Python code in the updated sneak peek:

There is a bonus if you get access before November 2. Make sure you don’t miss out on that.