Abstract

https://ssrn.com/abstract=1435163
 


 



Returns, Risk, and Financial Due Diligence


Christopher L. Culp


Johns Hopkins University - Institute for Applied Economics, Global Health, and Study of Business Enterprise; Swiss Finance Institute; Compass Lexecon; Risk Management Consulting Services, Inc.

J.B. Heaton


Bartlit Beck Herman Palenchar & Scott LLP

July 16, 2009

FINANCE ETHICS, J. R. Boatright, ed., New York: Wiley, 2010

Abstract:     
Financial due diligence is the process by which investors try to ascertain, among other things, the potential risks and returns of a contemplated investment. Both qualitative and quantitative methods are used to determine whether the investment offers a fair risk/return tradeoff (and what that tradeoff is). In this paper, we first review basic concepts of risk and return in financial economics with an eye toward the quantitative aspects of financial due diligence. We then illustrate the applications of these concepts in financial due diligence using the example of Bernard Madoff Investment Securities.


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Date posted: August 4, 2009 ; Last revised: December 21, 2014

Suggested Citation

Culp, Christopher L. and Heaton, J.B., Returns, Risk, and Financial Due Diligence (July 16, 2009). FINANCE ETHICS, J. R. Boatright, ed., New York: Wiley, 2010. Available at SSRN: https://ssrn.com/abstract=1435163 or http://dx.doi.org/10.2139/ssrn.1435163

Contact Information

Christopher L. Culp (Contact Author)
Johns Hopkins University - Institute for Applied Economics, Global Health, and Study of Business Enterprise ( email )
3400 N. Charles Street
Baltimore, MD 21218
United States
Swiss Finance Institute ( email )
c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4
Switzerland
Compass Lexecon ( email )
332 South Michigan Avenue
Suite 1300
Chicago, IL 60604
United States
Risk Management Consulting Services, Inc. ( email )
1501 N. State Pkwy., No. 7A
#7A
Chicago, IL Illinois 60610
United States
3125877163 (Phone)
HOME PAGE: http://www.rmcsinc.com
J.B. Heaton
Bartlit Beck Herman Palenchar & Scott LLP ( email )
Courthouse Place
54 West Hubbard Street
Chicago, IL 60610
United States
312-494-4425 (Phone)
312-494-4440 (Fax)
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