Sparked by a wave of natural disasters and terrorist attacks, the costs of traditional insurance have risen significantly. Businesses are therefore now seeking alternative ways to cover their high-impact risks. Rachel S. Kronowitz and Chidi J. Ogene outline the benefits of a variety of alternative risk financing techniques.

This chapter effectively introduces the Arbitrage Pricing Theory and factor models and the issues associated with their implementation, particularly parameter estimation and time-varying risk premiums. As with the book in general, this chapter is essentially non-technical, providing a higher level conceptual overview and referencing relevant previously published research for ... click here for more details.

After reviewing the Arbitrage Pricing Theory (APT) and factor models generally in chapter 2, this chapter focuses on research done on factors associated with changes in bond market returns. The chapter is filled with useful and practical information about the many potential factors for bond portfolios that have been ... click here for more details.

After reviewing the Arbitrage Pricing Theory (APT) and factor models generally in chapter 2, this chapter focuses on research done on factors associated with changes in equity market returns. The chapter is filled with useful and practical information about the many potential factors for equity portfolios that have been ... click here for more details.