Gilboa and Schmeidler provide a new paradigm for modeling decision making under uncertainty. Case-based decision theory suggests that people make decisions by analogies to past cases: they tend to choose acts that performed well in the past in similar situations, and to avoid acts that performed poorly. The authors describe the general theory and its relationship to planning, repeated choice problems, inductive inference, and learning. They highlight its mathematical and philosophical foundations and compare it to expected utility theory as well as to rule-based systems.
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Dimensions: 216 x 138 mm
Weight: 0.27 kg
Manufactured on demand: supplied direct from the printer

Latent Variable Models: An Introduction to Factor, Path, and Structural Equation
Analysis introduces latent variable models by utilizing path diagrams to explain the
relationships in the models. This approach helps less mathematically-inclined readers to grasp the underlying relations among path analysis, factor analysis, and structural equation modeling, and to set up and carry out such analyses. This revised and expanded fifth edition again contains key chapters on path analysis, structural equation models, and exploratory factor analysis. In addition, it contains new material on composite reliability, models with categorical data, the minimum average partial procedure, bi-factor models, and communicating about latent variable models.
The informal writing style and the numerous illustrative examples make the book
accessible to readers of varying backgrounds. Notes at the end of each chapter
expand the discussion and provide additional technical detail and references. Moreover, most chapters contain an extended example in which the authors work through one of the chapter’s examples in detail to aid readers in conducting similar analyses with their own data. The book and accompanying website provide all of the data for the book’s examples as well as syntax from latent variable programs so readers can replicate the analyses. The book can be used with any of a variety of computer programs, but special attention is paid to LISREL and R.
An important resource for advanced students and researchers in numerous disciplines in the behavioral sciences, education, business, and health sciences, Latent Variable Models is a practical and readable reference for those seeking to understand or conduct an analysis using latent variables.

In keeping with their successful introductory econometrics text, Stock and Watson motivate each methodological topic with a real-world policy application that uses data, so that readers apply the theory immediately. Introduction to Econometrics, Brief, is a streamlined version of their text, including the fundamental topics, an early review of statistics and probability, the core material of regression with cross-sectional data, and a capstone chapter on conducting empirical analysis. Introduction and Review: Economic Questions and Data; Review of Probability; Review of Statistics. Fundamentals of Regression Analysis: Linear Regression with One Regressor; Regression with a Single Regressor: Hypothesis Tests and Confidence Intervals in the Single-Regressor Model; Linear Regression with Multiple Regressors; Hypothesis Tests and Confidence Intervals in the Multiple Regressor Model; Nonlinear Regression Functions; Assessing Studies Based on Multiple Regression; Conducting a Regression Study Using Economic Data. MARKET : For all readers interested in econometrics.

There are currently two major theories about the role of the hippocampus, a distinctive structure in the back of the temporal lobe. One says that it stores a cognitive map, the other that it is a key locus for the temporary storage of episodic memories. A. David Redish takes the approach that understanding the role of the hippocampus in space will make it possible to address its role in less easily quantifiable areas such as memory. Basing his investigation on the study of rodent navigation—one of the primary domains for understanding information processing in the brain—he places the hippocampus in its anatomical context as part of a greater functional system.
Redish draws on the extensive experimental and theoretical work of the last 100 years to paint a coherent picture of rodent navigation. His presentation encompasses multiple levels of analysis, from single-unit recording results to behavioral tasks to computational modeling. From this foundation, he proposes a novel understanding of the role of the hippocampus in rodents that can shed light on the role of the hippocampus in primates, explaining data from primate studies and human neurology. The book will be of interest not only to neuroscientists and psychologists, but also to researchers in computer science, robotics, artificial intelligence, and artificial life.

In The Mind within the Brain, David Redish brings together cutting edge research in psychology, robotics, economics, neuroscience, and the new fields of neuroeconomics and computational psychiatry, to offer a unified theory of human decision-making. Most importantly, Redish shows how vulnerabilities, or "failure-modes," in the decision-making system can lead to serious dysfunctions, such as irrational behavior, addictions, problem gambling, and PTSD. Told with verve and humor in an easily readable style, Redish makes these difficult concepts understandable. Ranging widely from the surprising roles of emotion, habit, and narrative in decision-making, to the larger philosophical questions of how mind and brain are related, what makes us human, the nature of morality, free will, and the conundrum of robotics and consciousness, The Mind within the Brain offers fresh insight into one of the most complex aspects of human behavior.

The years since World War II have seen rapid shifts in the relative positions of different countries and regions. Leading political economist Mancur Olson offers a new and compelling theory to explain these shifts in fortune and then tests his theory against evidence from many periods of history and many parts of the world.
“[T]his elegant, readable book. . . sets out to explain why economies succumb to the ‘British disease,’ the kind of stagnation and demoralization that is now sweeping Europe and North America. . . . A convincing book that could make a big difference in the way we think about modern economic problems.”—Peter Passell, The New York Times Book Review
“Schumpeter and Keynes would have hailed the insights Olson gives into the sicknesses of the modern mixed economy.”—Paul A. Samuelson, Massachusetts Institute of Technology
“One of the really important books in social science of the past half-century.”—Scott Gordon, The Canadian Journal of Economics
“The thesis of this brilliant book is that the longer a society enjoys political stability, the more likely it is to develop powerful special-interest lobbies that in turn make it less efficient economically.”—Charles Peters, The Washington Monthly
“Remarkable. The fundamental ideas are simple, yet they provide insight into a wide array of social and historical issues. . . . The Rise and Decline of Nations promises to be a subject of productive interdisciplinary argument for years to come.”—Robert O. Keohane, Journal of Economic Literature
“I urgently recommend it to all economists and to a great many non-economists.”—Gordon Tullock, Public Choice
“Olson’s theory is illuminating and there is no doubt that The Rise and Decline of Nations will exert much influence on ideas and politics for many decades to come.”—Pierre Lemieux, Reason
Co-winner of the 1983 American Political Science Association’s Gladys M. Kammerer Award for the best book on U.S. national policy

What is the best way to auction an asset? How should a group of people organize themselves to ensure the best provision of public goods? How should exchanges be organized? In An Introduction to the Theory of Mechanism Design, Tilman Börgers addresses these questions and more through an exploration of the economic theory of mechanism design. Mechanism design is reverse game theory. Whereas game theory takes the rules of the game as a given and makes predictions about the behavior of strategic players, the theory of mechanism design goes a step further and selects the optimal rules of the game.
A relatively new economic theory, mechanism design studies the instrument itself as well as the results of the instrument. An Introduction to the Theory of Mechanism Design provides rigorous but accessible explanations of classic results in the theory of mechanism design, such as Myerson's theorem on expected revenue maximizing auctions, Myerson and Satterthwaite's theorem on the impossibility of ex post efficient bilateral trade with asymmetric information, and Gibbard and Satterthwaite's theorem on the non-existence of dominant strategy voting mechanisms. Börgers also provides an examination of the frontiers of current research in the area with an original and unified perspective that will appeal to advanced students of economics.
"Tilman Borgers offers the first book-length introduction into the theory of mechanism design. Written in a very personal and masterful style, he carefully covers the main developments in theory of mechanism design-the theory of how to choose the rules of the game-over the past decades. It will be an ideal textbook for advanced undergraduate and graduate courses for many years to come."
Dirk Bergemann, Douglass and Marion Campbell Professor of Economics and Chair, Yale University
"Tilman Borgers gives a beautifully lucid and elegant development of mechanism design in this wonderful book. His masterful exposition provides a unified and cohesive treatment of modern mechanism design, starting from first principles and working through topics at the leading edge of the research frontier. This book is a delight and an invaluable resource for those new to the field and experts alike."
Chris Shannon, Richard and Lisa Steiny Professor of Economics and Professor of Mathematics, University of California, Berkeley
"This book provides an integrated treatment of the theory of mechanism design by a leading practitioner in this area. It covers the core theory together with chapters on recent developments in robust mechanism design and dynamic mechanism design. The core theory is built up in an original and pedagogically successful way, starting with screening in chapter 2 and immediately using those tools to develop leading applications of Bayesian mechanism design-auctions, bilateral trade, and public goods-in chapter 3. These results can then naturally be adapted to dominant strategies in chapter 4. Chapters 5, 6, and 7 then deal with the general theories of incentive compatibility, Bayesian mechanism design, and dominant strategy mechanism design.
The first seven chapters of the book focus on the quasi-linear environments studied in most economic applications, with more general environments ('non-transferable utility') postponed to chapter 8. This ordering of material reflects not the historical development of the subject but a natural and effective path to learn the material. Borgers develops a unified treatment of core material without attempting to be exhaustive. Valuable endnotes at the end of each chapter then explain the historical context and relation to the literature more broadly. It will serve as an excellent textbook for graduate students and advanced undergraduates, and an invaluable reference for researchers."
Stephen Morris, Professor of Economics, Princeton University

The Foundation has managed to preserve humanculture and shorten the period of chaotic barbarism after the Galactic Empire began to decay. But the Foundation still faces great challenges in its struggle to survive.

What did the trial of Galileo share with the trial for fraud of the foremost investigator of the effects of lead exposure on children's intelligence? In the title essay of this rollicking collection on science and education, Clark Glymour argues that fundamentally both were disputes over what methods are legitimate and authoritative. From testing the expertise of NASA scientists to discovering where software goes to die to turning educational research upside down, Glymour's reports from the front lines of science and education read like a blend of Rachel Carson and Dr. Hunter S. Thompson. Contrarian and original, he criticizes the statistical arguments against Teach for America, argues for teaching the fallacies of Intelligent Design in high school science, places contemporary psychological research in a Platonic cave dug by Freud, and gives (and rejects) a fair argument for a self-interested, nationalist response to climate change. One of the creators of influential new statistical methods, Glymour has been involved in scientific investigations on such diverse topics as wildfire prediction, planetary science, genomics, climate studies, psychology, and educational research. Now he provides personal reports of the funny, the absurd, and the appalling in contemporary science and education. More bemused than indignant, "Galileo in Pittsburgh" is an ever engaging call to rethink how we do science and how we teach it.

Theory of Value offers a rigorous, axiomatic, and formal analysis of producer behavior, consumer behavior, general equilibrium, and the optimality of the market mechanism for resource allocation.

Fifty years after its original publication, Catch-22 remains a cornerstone of American literature and one of the funniest—and most celebrated—books of all time. In recent years it has been named to “best novels” lists by Time, Newsweek, the Modern Library, and the London Observer.

Set in Italy during World War II, this is the story of the incomparable, malingering bombardier, Yossarian, a hero who is furious because thousands of people he has never met are trying to kill him. But his real problem is not the enemy—it is his own army, which keeps increasing the number of missions the men must fly to complete their service. Yet if Yossarian makes any attempt to excuse himself from the perilous missions he’s assigned, he’ll be in violation of Catch-22, a hilariously sinister bureaucratic rule: a man is considered insane if he willingly continues to fly dangerous combat missions, but if he makes a formal request to be removed from duty, he is proven sane and therefore ineligible to be relieved.

This fiftieth-anniversary edition commemorates Joseph Heller’s masterpiece with a new introduction by Christopher Buckley; a wealth of critical essays and reviews by Norman Mailer, Alfred Kazin, Anthony Burgess, and others; rare papers and photos from Joseph Heller’s personal archive; and much more. Here, at last, is the definitive edition of a classic of world literature.

The Inside Story of the Venture Capital World as Told by the Industry＇s Elite PlayersArguably today＇s hottest industry, venture capital is a dynamic engine of wealth creation that has contributed both

Entrepreneurs who dream of building the next Amazon, Facebook, or Google have the opportunity to take advantage of one of the most powerful economic engines the world has ever known: venture capital. To do that, you need to woo, impress, and persuade venture capitalists to back your endeavor. That task alone is a challenge. But finding and choosing the right investor can be harder still. Even if you manage to get backing, you want your VC to be a partner, not some dictator who will undermine your vision and take control of your life's work.
Jeffrey Bussgang is one of a very few people who have played on both sides of this high-stakes game. By his early thirties, he had helped build two successful start-ups-one went public, the other was acquired. Now he uses his experience and unique perspective on "the other side" as a venture capitalist helping entrepreneurs bring their dreams to fruition.
In the book, Bussgang offers high-level insights, colorful stories, and practical advice gathered from his own experience as well as from interviews with dozens of the most successful players on both sides of the game, including Twitter's Jack Dorsey and LinkedIn's Reid Hoffman. He reveals how to get noticed, perfect a pitch, and negotiate a partnership that works for everyone.
An insider's guide to the secrets of the world venture capital, Mastering the VC Game will prove invaluable for entrepreneurs seeking capital and successful partnerships. To learn more, visit JeffBussgang.com. (edited by author)

This 25th anniversary edition of Steven Levy's classic book traces the exploits of the computer revolution's original hackers -- those brilliant and eccentric nerds from the late 1950s through the early '80s who took risks, bent the rules, and pushed the world in a radical new direction. With updated material from noteworthy hackers such as Bill Gates, Mark Zukerberg, Richard Stallman, and Steve Wozniak, Hackers is a fascinating story that begins in early computer research labs and leads to the first home computers. Levy profiles the imaginative brainiacs who found clever and unorthodox solutions to computer engineering problems. They had a shared sense of values, known as "the hacker ethic," that still thrives today. Hackers captures a seminal period in recent history when underground activities blazed a trail for today's digital world, from MIT students finagling access to clunky computer-card machines to the DIY culture that spawned the Altair and the Apple II.

Amazon.com Exclusive: The Rant Heard Round the World
By Steven Levy

Author Steven Levy When I began researching Hacker s--so many years ago that it’s scary--I thought I’d largely be chronicling the foibles of a sociologically weird cohort who escaped normal human interaction by retreating to the sterile confines of computers labs. Instead, I discovered a fascinating, funny cohort who wound up transforming human interaction, spreading a culture that affects our views about everything from politics to entertainment to business. The stories of those amazing people and what they did is the backbone of Hackers: Heroes of the Computer Revolution .

But when I revisited the book recently to prepare the 25th Anniversary Edition of my first book, it was clear that I had luckily stumbled on the origin of a computer (and Internet) related controversy that still permeates the digital discussion. Throughout the book I write about something I called The Hacker Ethic, my interpretation of several principles implicitly shared by true hackers, no matter whether they were among the early pioneers from MIT’s Tech Model Railroad Club (the Mesopotamia of hacker culture), the hardware hackers of Silicon Valley’s Homebrew Computer Club (who invented the PC industry), or the slick kid programmers of commercial game software. One of those principles was “Information Should Be Free.” This wasn’t a justification of stealing, but an expression of the yearning to know more so one could hack more. The programs that early MIT hackers wrote for big computers were stored on paper tapes. The hackers would keep the tapes in a drawer by the computer so anyone could run the program, change it, and then cut a new tape for the next person to improve. The idea of ownership was alien.
This idea came under stress with the advent of personal computers. The Homebrew Club was made of fanatic engineers, along with a few social activists who were thrilled at the democratic possibilities of PCs. The first home computer they could get their hands on was 1975’s Altair, which came in a kit that required a fairly hairy assembly process. (Its inventor was Ed Roberts, an underappreciated pioneer who died earlier this year.) No software came with it. So it was a big deal when 19-year-old Harvard undergrad Bill Gates and his partner Paul Allen wrote a BASIC computer language for it. The Homebrew people were delighted with Altair BASIC, but unhappy that Gates and Allen charged real money for it. Some Homebrew people felt that their need for it outweighed their ability to pay. And after one of them got hold of a “borrowed” tape with the program, he showed up at a meeting with a box of copies (because it is so easy to make perfect copies in the digital age), and proceeded to distribute them to anyone who wanted one, gratis.
This didn’t sit well with Bill Gates, who wrote what was to become a famous “Letter to Hobbyists,” basically accusing them of stealing his property. It was the computer-age equivalent to Luther posting the Ninety-Five Theses on the Castle Church. Gate’s complaints would reverberate well into the Internet age, and variations on the controversy persist. Years later, when another undergrad named Shawn Fanning wrote a program called Napster that kicked off massive piracy of song files over the Internet, we saw a bloodier replay of the flap. Today, issues of cost, copying and control still rage--note Viacom’s continuing lawsuit against YouTube and Google. And in my own business—journalism--availability of free news is threatening more traditional, expensive new-gathering. Related issues that also spring from controversies in Hackers are debates over the “walled gardens” of Facebook and Apple’s iPad.
I ended the original Hackers with a portrait of Richard Stallman, an MIT hacker dedicated to the principle of free software. I recently revisited him while gathering new material for the 25th Anniversary Edition of Hackers , he was more hard core than ever. He even eschewed the Open Source movement for being insufficiently noncommercial.
When I spoke to Gates for the update, I asked him about his 1976 letter and the subsequent intellectual property wars. “Don’t call it war,” he said. “Thank God we have an incentive system. Striking the right balance of how this should work, you know, there's going to be tons of exploration.” Then he applied the controversy to my own situation as a journalism. “Things are in a crazy way for music and movies and books,” he said. “Maybe magazine writers will still get paid 20 years from now. Who knows? Maybe you'll have to cut hair during the day and just write articles at night.”
So Amazon.com readers, it’s up to you. Those who have not read Hackers, , have fun and be amazed at the tales of those who changed the world and had a hell of time doing it. Those who have previously read and loved Hackers , replace your beat-up copies, or the ones you loaned out and never got back, with this beautiful 25th Anniversary Edition from O’Reilly with new material about my subsequent visits with Gates, Stallman, and younger hacker figures like Mark Zuckerberg of Facebook. If you don’t I may have to buy a scissors--and the next bad haircut could be yours! Read Bill Gates' letter to hobbyists

Negotiation is part of every human encounter, and most of us do it badly. Whether dealing with family, a business or diplomacy, people often fail to meet their goals in every country and context. They focus on power and “win-win” instead of relationships and perceptions. They don’t find enough things to trade. They think others should be rational when they should be dealing with emotions. They get distracted from their goals.

In this revolutionary book, leading negotiation practitioner and professor Stuart Diamond draws on the research and practice of 30,000 people he has taught and advised in 45 countries over two decades to outline specific, practical and better ways to deal with others. They range from country and corporate leaders to administrative assistants, lawyers, housewives, students and laborers. To this he adds his 40-year experience as an executive, Harvard-trained attorney and Pulitzer Prize winning journalist.

Getting More is based on Professor Diamond’s award-winning negotiations course at The Wharton Business School, where it has been the most sought-after course by students for 13 years. It contains a powerful toolkit that can be used by anyone in any situation: with kids and jobs, travel and shopping, business, politics, relationships, cultures, partners and competitors.

The advice is addressed through the insightful stories of hundreds of people who have used Diamond’s tools with great success. A 20% savings on an item already on sale. An extra $300 million profit in a business. A woman from India getting out of her own arranged marriage. A 4 year old willingly brushing his teeth and going to bed.

Conventional wisdom is challenged on almost every page. Instead of “win-win,” it sometimes makes more sense lose today to get more tomorrow. The use of power, Diamond cautions, too often causes retaliation, harms relationships and costs credibility. Walking out is almost never as good as understanding the other person’s perceptions and fixing the problem. Not everything is about money; intangibles such as valuing others will often get you much more in return. Even the hardest bargainers can be tamed by using their own public standards against them.

The key to getting more is finding the right tools for each situation; being more flexible, and better understanding the other party. These strategies are invisible, until you learn them. Once you see them, they will always be there to help you get more .

"Nate Silver's The Signal and the Noise is The Soul of a New Machine for the 21st century."
—Rachel Maddow, author of Drift
Nate Silver built an innovative system for predicting baseball performance, predicted the 2008 election within a hair’s breadth, and became a national sensation as a blogger—all by the time he was thirty. The New York Times now publishes FiveThirtyEight.com, where Silver is one of the nation’s most influential political forecasters.
Drawing on his own groundbreaking work, Silver examines the world of prediction, investigating how we can distinguish a true signal from a universe of noisy data. Most predictions fail, often at great cost to society, because most of us have a poor understanding of probability and uncertainty. Both experts and laypeople mistake more confident predictions for more accurate ones. But overconfidence is often the reason for failure. If our appreciation of uncertainty improves, our predictions can get better too. This is the “prediction paradox”: The more humility we have about our ability to make predictions, the more successful we can be in planning for the future.
In keeping with his own aim to seek truth from data, Silver visits the most successful forecasters in a range of areas, from hurricanes to baseball, from the poker table to the stock market, from Capitol Hill to the NBA. He explains and evaluates how these forecasters think and what bonds they share. What lies behind their success? Are they good—or just lucky? What patterns have they unraveled? And are their forecasts really right? He explores unanticipated commonalities and exposes unexpected juxtapositions. And sometimes, it is not so much how good a prediction is in an absolute sense that matters but how good it is relative to the competition. In other cases, prediction is still a very rudimentary—and dangerous—science.
Silver observes that the most accurate forecasters tend to have a superior command of probability, and they tend to be both humble and hardworking. They distinguish the predictable from the unpredictable, and they notice a thousand little details that lead them closer to the truth. Because of their appreciation of probability, they can distinguish the signal from the noise.
With everything from the health of the global economy to our ability to fight terrorism dependent on the quality of our predictions, Nate Silver’s insights are an essential read.

Praise for Quantitative Equity Portfolio Management "A must-have reference for any equity portfolio manager or MBA student, this book is a comprehensive guide to all aspects of equity portfolio management, from factor models to tax management." ERIC ROSENFELD, Principal & Co-founder of JWM Partners "This is an ambitious book that both develops the broad range of artillery employed in quantitative equity investment management and provides the reader with a host of relevant practical examples. The book excels in melding theory with practice." STEPHEN A. ROSS, Franco Modigliani Professor of Financial Economics, Massachusetts Institute of Technology "The book is very comprehensive in its coverage, detailed in its discussions and written from a practical perspective without sacrificing needed rigor." DAVID BLITZER, Managing Director and Chairman, Standard & Poor's Index Committee "Making the transition from the walls of academia to Wall Street has traditionally been a difficult task!This book provides this link in a successful and engaging fashion, giving students of finance a road map for the application of financial theories in a real-world setting." MARK HOLOWESKO, CEO and Founder, Templeton Capital Advisors "This text provides an excellent synthesis of a broad range of quantitative portfolio management methods!In addition, there are a number of insightful innovations that extend and improve current techniques." DAN DIBARTOLOMEO, President and Founder, Northfield Information Services, Inc. Capitalize on Today's Most Powerful Quantitative Methods to Construct and Manage a High-Performance Equity Portfolio Quantitative Equity Portfolio Management is a comprehensive guide to the entire process of constructing and managing a high-yield quantitative equity portfolio. This detailed handbook begins with the basic principles of quantitative active management and then clearly outlines how to build an equity portfolio using those powerful concepts. Financial experts Ludwig Chincarini and Daehwan Kim provide clear explanations of topics ranging from basic models, factors and factor choice, and stock screening and ranking!to fundamental factor models, economic factor models, and forecasting factor premiums and exposures. Readers will also find step-by-step coverage of portfolio weights! rebalancing and transaction costs!tax management!leverage! market neutral!Bayesian _!performance measurement and attribution!the back testing process!and portfolio performance. Filled with proven investment strategies and tools for developing new ones, Quantitative Equity Portfolio Management features: A complete, easy-to-apply methodology for creating an equity portfolio that maximizes returns and minimizes risks The latest techniques for building optimization into a professionally managed portfolio An accompanying CD with a wide range of practical exercises and solutions using actual historical stock data An excellent melding of financial theory with real-world practice A wealth of down-to-earth financial examples and case studies Each chapter of this all-in-one portfolio management resource contains an appendix with valuable figures, tables, equations, mathematical solutions, and formulas. In addition, the book as a whole has appendices covering a brief history of financial theory, fundamental models of stock returns, a basic review of mathematical and statistical concepts, an entertaining explanation and quantitative approach to the casino game of craps, and other on-target supplemental materials. An essential reference for professional money managers and students taking advanced investment courses, Quantitative Equity Portfolio Management offers a full array of methods for effectively developing high-performance equity portfolios that deliver lucrative returns for clients. About the Authors Ludwig B. Chincarini, Ph.D., CFA, is a professor of finance at Georgetown University as well as a financial consultant to institutional investors. Previously, he was director of research at Rydex Global Advisors, the index mutual fund company. Prior to that, Dr. Chincarini was director of research at FOLIOfn, a brokerage firm that pioneered basket trading. He also worked at the Bank for International Settlements and holds a Ph.D. in economics from the Massachusetts Institute of Technology. Daehwan Kim, Ph.D., is a professor of economics at the American University in Bulgaria. Previously, he was employed as a financial economist for FOLIOfn. Dr. Kim also worked as a financial journalist, writing regular columns on financial markets for business media in Asia. He also holds a Ph.D. in economics from Harvard University.

"This new edition of Active Portfolio Management continues the standard of excellence established in the first edition, with new and clear insights to help investment professionals." -William E. Jacques, Partner and Chief Investment Officer, Martingale Asset Management. "Active Portfolio Management offers investors an opportunity to better understand the balance between manager skill and portfolio risk. Both fundamental and quantitative investment managers will benefit from studying this updated edition by Grinold and Kahn." -Scott Stewart, Portfolio Manager, Fidelity Select Equity (R) Discipline Co-Manager, Fidelity Freedom (R) Funds. "This Second edition will not remain on the shelf, but will be continually referenced by both novice and expert. There is a substantial expansion in both depth and breadth on the original. It clearly and concisely explains all aspects of the foundations and the latest thinking in active portfolio management." -Eric N. Remole, Managing Director, Head of Global Structured Equity, Credit Suisse Asset Management. Mathematically rigorous and meticulously organized, Active Portfolio Management broke new ground when it first became available to investment managers in 1994. By outlining an innovative process to uncover raw signals of asset returns, develop them into refined forecasts, then use those forecasts to construct portfolios of exceptional return and minimal risk, i.e., portfolios that consistently beat the market, this hallmark book helped thousands of investment managers. Active Portfolio Management, Second Edition, now sets the bar even higher. Like its predecessor, this volume details how to apply economics, econometrics, and operations research to solving practical investment problems, and uncovering superior profit opportunities. It outlines an active management framework that begins with a benchmark portfolio, then defines exceptional returns as they relate to that benchmark. Beyond the comprehensive treatment of the active management process covered previously, this new edition expands to cover asset allocation, long/short investing, information horizons, and other topics relevant today. It revisits a number of discussions from the first edition, shedding new light on some of today's most pressing issues, including risk, dispersion, market impact, and performance analysis, while providing empirical evidence where appropriate. The result is an updated, comprehensive set of strategic concepts and rules of thumb for guiding the process of-and increasing the profits from-active investment management.