Valuation and Volatility: Stakeholder's Perspective

This textbook provides a comprehensive guide to understanding the impact of volatility on valuations, including techniques for measuring risk, designing tests, and combining positions and hedging. It also offers practical insights into benchmarks, tax implications, and the end use of volatility for stakeholders, with examples and business use cases.

Format: Paperback / softback
Length: 169 pages
Publication date: 22 February 2023
Publisher: Springer Verlag, Singapore

This comprehensive textbook offers a firsthand exploration of the profound impact of volatility on valuations, providing a valuable resource for investors, financial professionals, and scholars alike. It delves into the intricate process of valuing investments, offering fair, practical, and insightful explanations that enhance understanding and decision-making.

Volatility plays a pivotal role in determining fair value, as it serves as the basis for assessing the potential risks and rewards associated with an asset. Even slight fluctuations in volatility can have a substantial impact on the cost of borrowing capital, making it essential for portfolio managers, fund managers, and corporates to closely monitor market movements.

As prices fluctuate due to volatility, these stakeholders may impose future restrictions on their strategic maneuvers, emphasizing the need for robust risk management strategies. The book underscores the importance of measuring risk and translating losses into end impacts, highlighting the post facto and post-period nuances involved in recovering from financial losses.

Furthermore, the text delves into the techniques for combining positions and hedging, enabling the evaluation and selection of effective testing methodologies. It provides guidance on benchmarks, tax implications, and the carrying forward of benefits of losses, further enhancing the understanding of volatility's implications in the financial world.

Examples and business use cases are incorporated throughout the text, reinforcing the analysis and highlighting the practical applications of volatility for stakeholders. By presenting a holistic perspective on the topic, this textbook serves as a valuable tool for anyone seeking to deepen their knowledge and expertise in the field of investment valuation and risk management.

Weight: 296g
Dimension: 235 x 155 (mm)
ISBN-13: 9789811611377
Edition number: 1st ed. 2022