The SQUEEZE: Peter L. Bernstein traces the evolution of risk in Against the Gods: The Remarkable Story of Risk. In the book, Bernstein begins the narrative exploring ancient thinking regarding risk, tracing the history of the concept of numbers and probability to the current markets system of portfolio theory, derivatives, and risk management techniques. Bernstein highlights such historical figures as John von Neumann, who invented game theory; Isaac Newton, a noted English physicist; and Harry Markowtiz, who is considered to be the grandfather of portfolio theory. Bernstein inserts enlightening stories about chaos theory, the bell curve, and regression to the mean. Bernstein’s Against the Gods is a must-read for mathematicians, risk managers, and investment advisers.

Notable Endorsement: “Ambitious and readable . . . an engaging introduction to the oddsmakers, whom Bernstein regards as true humanists helping to release mankind from the choke holds of superstition and fatalism.” -The New York Times

 Common Q’s Answered by this Book:

• What is the French Connection?
• What is the Renaissance Gambler?
• What is the search for moral certainty?
• What are peapods and perils?
• What are side bets?

About the Author: Peter L. Bernstein was an American financial historian. Bernstein was also an educator; he refined the “efficient-market hypothesis,” making it possible for the presentation of economics accessible to the general public. Bernstein taught economics at Williams College, following this up with a five-year tenure in commercial banking. This job prepared him to assume control of his father’s wealth management firm, Bernstein-Macaulay, Inc. In this position, he managed billions of dollars in institutional assets and individual portfolios. Throughout his career, Bernstein became the first editor of the Journal of Portfolio Management, a scholarly financial publication and later served on an advisory panel with Research Affiliates, an investment management firm. Bernstein completed a bachelor’s degree in economics from Harvard College. For more information, visit: http://en.wikipedia.org/wiki/Peter_L._Bernstein.

Book Vitals:

• Publisher: Wiley (August 1998)