Front Cover; Multi-Asset Risk Modeling; Copyright Page; Contents; Preface; About The Authors; Acknowledgements; 1 Introduction to Multi-Asset Risk Modeling-Lessons from the Debt Crisis; Types of Risk; Credit Risk; Interest Rate and Market Risk; Liquidity Risk; Price Risk; Foreign Exchange Risk; Transaction Risk; Compliance Risk; Strategic Risk; Reputation Risk; Faulted Risk Models; Financial Models Breaking Down in the Equity Markets; Covariance Models; Correlation Modeling; Algorithm Trading Issues; Risk Models Breaking Down; Deterministic Optimization; Simplistic Investment Models. Deterministic or Static ForecastingReferences; 2 A Primer on Risk Mathematics; Introduction; Regression Analysis; Linear Regression; Model Evaluation Metrics; Model Assumptions; Regression Analysis Statistics; T-Test; F-Test; R2 Goodness of Fit; Unbiased Estimators; Matrix Algebra Techniques; Estimate Parameters; Linear Regression: Graphic Example; Log-Linear Regression Model; Log-Transformation: Graphic Example; Non-Linear Regression Model; Probability Models; Model Formulation; Mean and Variance; Logit Model; Probit Model; Comparison of Logit and Probit Models; Probability Distributions. Extreme Value FunctionsDescriptive Statistics; Probability Distribution Functions; Continuous Distribution Functions; Normal Distribution; Standard Normal Distribution; Student's T-Distribution; Student's T-Distribution: Interesting Notes; Log-Normal Distribution; Uniform Distribution; Exponential Distribution; Beta Distribution; Gamma Distribution; Chi Square Distribution; Logistic Distribution; Cauchy Distribution; Triangular Distribution; Extreme Value Functions; Gumbel Distribution; Frechet Distribution; Weibull Distribution; Discrete Distributions; Binomial Distribution. Poisson DistributionGeometric Distribution; Hypergeometric Distribution; Endnotes; References; 3 A Primer on Quantitative Risk Analysis; A Brief History of Risk: What exactly is Risk?; The Basics of Risk; The Nature of Risk and Return; Uncertainty Versus Risk; Risk Simulation Applications; Running a Monte Carlo Simulation; Start a New Simulation Profile; Define Input Assumptions; Define Output Forecasts; Run Simulation; Interpret the Forecast Results; Using Forecast Charts and Confidence Intervals; TIPS; Correlations and Precision Control; The Basics of Correlations. Applying Correlations in Risk SimulatorThe Effects of Correlations in Monte Carlo Simulation; Precision and Error Control; Exercise 1: Basic Simulation Model; Model Background; Running a Monte Carlo Risk Simulation; Using Forecast Charts; Interpreting the Risk Statistics; Optional Exercises; Preferences; Options; Controls; Setting Seed Values; Running Super Speed Simulation; Setting Run Preferences (Simulation Properties); Extracting Simulation Data; Optional Exercises; Creating a Simulation Report and Forecast Statistics Table; Creating Forecast Statistics Using the RS Functions. Saving a Simulation Run's Forecast Charts.