The definitive guide for any professional risk management in the financial services industry, Foundational Theories and Techniques for Risk Management provides a complete reference for financial theory and application, financial instruments, and the financial markets.Part II provides an invaluable primer into navigating the complex and profitable area of hedge funds, with detailed descriptions of the major financial instruments, the valuation methods most appropriate for each, market risks, price drivers and their variables, and the professionals who participate in each. With the insights of an international group of investment professionals and thinkers, part II addresses the most active financial instruments, giving professional risk managers in financial services an invaluable edge in this high-risk, highly popular field.