(Ebook) Risk Analysis in Finance and Insurance, Second Edition by Alexander Melnikov ISBN 9781420070521, 1420070525

(Ebook) Risk Analysis in Finance and Insurance, Second Edition by Alexander Melnikov ISBN 9781420070521, 1420070525

Risk Analysis in Finance and Insurance, Second Edition presents an accessible yet comprehensive introduction to the main concepts and methods that transform risk management into a quantitative science. Taking into account the interdisciplinary nature of risk analysis, the author discusses many important ideas from mathematics, finance, and actuarial science in a simplified manner. He explores the interconnections among these disciplines and encourages readers toward further study of the subject. This edition continues to study risks associated with financial and insurance contracts, using an approach that estimates the value of future payments based on current financial, insurance, and other information.New to the Second Edition Expanded section on the foundations of probability and stochastic analysisCoverage of new topics, including financial markets with stochastic volatility, risk measures, risk-adjusted performance measures, and equity-linked insuranceMore worked examples and problems Reorganized and expanded, this updated book illustrates how to use quantitative methods of stochastic analysis in modern financial mathematics. These methods can be naturally extended and applied in actuarial science, thus leading to unified methods of risk analysis and management.